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Process Systems

Cassava Industrialization Project: (Preliminary Proposal) 3 Million Litres per Year Ethanol Plant

(And) 18,000 Tons per Year Cassava Flour

In Ogun State, Nigeria.

TYPICAL ETHANOL PLANT and FLOUR PROCESSING PLANT .

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EXECUTIVE SUMMARY

1.1 OVERVIEW AND PROJECT OBJECTIVE. This proposal is being submitted in Ogun state as a Private Sector Initiative for the establishment of an Integrated Cassava Processing Plant primarily for the production of 3,000,000 Litres of Ethanol Per Year (3 Million Litres Per Year) and 18,000 Tons per Year of high quality cassava flour.

1.2 PROMOTERS. It is being packaged by Sino - US Energy & Technology Inc., a Chinese Foreign Investment Firm under the Chinese Government Foreign Investment Authority in conjunction with the Consortium of Process Systems and American Procurement & Export Company LLC for the primary purpose of taking advantage of the Federal Government of Nigeria economic reforms among which are increase in the Agricultural productive base, reduction of poverty through employment generation and the diversification of Nigeria’s export earnings.

1.3 PROJECT COST, REQUIREMENTS and EMPLOYMENT GENERATION.

The Project, with an estimated cost of US$ 16,389,260 will require

about 5,000 hectares of arable Farm land for the continuous supply of 75, 000

Tons of fresh Cassava tubers from direct production, out growers and/or

suppliers all year round. This will generate over 1,000 direct and 4,000

indirect jobs in the rural areas, reduce poverty and create wealth.

The processing plant will employ about 120 people with an average

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Annual income of Naira 350,000 per person; serve as a source of technology

transfer, improve the quality of life for the workers and add to the

industrial base of the State.

1.4 ESTIMATED TAXES.

The various tiers of Government will benefit from an anticipated annual

company tax payment of over USD 900,000 apart from individual personal

income tax.

1.5 MARKET ORIENTATION. The planned plants’ products are primarily targeted at the increasing demand of cassava products: Ethanol will partly satisfy the increasing National and Worldwide demand for bio fuels, increase and diversify Nigeria’s export earnings, and conserve Nigeria’s Crude Oil reserves. Export of the product (Ethanol) will also increase the export earnings of the country and create other linkage effect in haulage and shipping sectors of the economy. Cassava flour, on the other hand, is geared towards satisfying part of the local demand of the product by the Flour Milling Companies in Nigeria in compliance with the Federal Government of Nigeria directive for 10% cassava flour inclusion in

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their wheat flour. Milling Companies’ requirements of Cassava flour is estimated at 300,000 tons annually. 2, PROJECT COST. The proposed plant, with a total investment cost of about US$ 16,389,260 is made up of various components as follows: Table 1.1: Estimated Project Cost.

S/N

Project Component Description

Estimated Cost US$

1 Land Acquisition, Development etc 1,875,000

2 Civil Works and Buildings 2,230,200

3 Plant, Machinery and Equipment 4,494,600

4 Auxiliary and Ancillary Facilities 1,250,000

5 Engineering Fees 1,149,460

8 Owner Expenses 1,740,000

9 Farm Land and Farm Operations 2,675,000

10 Working capital 1,000,000

11

12 Total

16,389,260

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3, FINANCING. The above requirement will be funded by a combination of investors from Nigeria and abroad. The structure is made up as follows: Foreign Local Total US$ US$ US$ Equity 7,090,160 4,425,000 11,515,160 Foreign Technical Partners 4,559.960 African Development Bank 2,530.200 Private /Local Banks and Investor 4,425.000 Long Term Loans 2,824,100 2,824,100 BoI 1,249.100 NACB 1,575.000 Medium Term Loans Short Term Loans 2,050.00 2,050,000 Bank 1 1,000.000 Bank 2 1,050,000 Total 7,090,160 9,299,100 16,389,280

4 , PRIVATE COMPANY FACILITATION The COMPANY as equity participation (as part of the local equity contribution) is expected to be in the form of services relating to its role as the FACILITATOR OF THE PROJECT in the provision of the following: ► Land acquisition, clearing, development and preparation. Other land matters, Occupancy rights and rights of way. ► Securing the loans for procurement of the Plant and Machinery and overdraft from the participating financial partners.

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The secured foreign loans will be offered to the public as shares after two years of production ► Provision of Cassava seedlings and fertilizer for the cassava farm project take Off ► Facilitating the issuance and granting of regulatory permits and approvals for the establishment of the plant. . ► Facilitating the issuance of expatriate quotas for the officials and personnel of the Foreign Technical Partners. ► Facilitating the approval for the remittance of due portion of all foreign loans and interests, salaries and wages of the Foreign Technical Partner’s Officers and Personnel, as well as earned profits of the Foreign Equity holders. 5. REVENUE, EXPENDITURE, PROFIT and TAXES. 5.1 REVENUE: An estimated annual revenue of US $ 14,460,000 is expected from the export sale of Ethanol and local sale of Cassava Flour. 5.2 EXPENDITURE: A total expenditure of US$ 9,060,000 is projected which covers all raw material costs, overheads, marketing and interest payments 5.3 GROSS PROFIT: A gross profit of US$ 5,400,000 is estimated 5.4 ESTIMATED TAX: An estimated tax of US$ 800,000 is projected to all tiers of Government.

6 RETURN ON INVESTMENT. The establishment of the project is economically viable with a Return On Investment (ROI) of about 30% and a pay back period of four years.

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7, CUSTODIAN OF THE PROJECT. The custodian of the project is proposed for the materialization and operation of the project as follows:

Process Systems American Procurement & Export Company LLC Sino Energy & Technology , USA

Promoters

African Development Bank (AfDB) Private Local Investors Equity Partners

Nigerian Agricultural Credit Bank (NACB) Flour Millers Association of Nigeria (FMAN)

Bank of Industry (BoI) Commercial Banks. Finance Partners ( Loans)

Federal/ Ogun State Government of Nigeria supporter

Custodian Of the Integrated Cassava Project (the company)

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8, SITE AND LOCATION The proposed sites will be easily accessible by a network of good roads and other infrastructural facilities. No difficulties will be encountered either during the construction period for the delivery of Machinery/Equipment/Materials and during the normal operation of the plant.

9, PROJECT SCHEDULE. The implementation of the project is expected to be completed within 2 years after all necessary Governmental and Regulatory approvals have been obtained and Memorandum of Understanding (MOU) signed. 10, POLICY THRUST SUPPORTING THIS INDUSTRIAL PROPOS AL National and Worldwide Government support and Policies for increased Ethanol production to reduce Green house emissions through the blending of Ethanol with Petrol is a major economic and industrial thrust for investment in this area. Locally, the policy thrusts supporting this initiative are centred on the following: a) Increasing the life span of Nigeria’s Oil reserves through blending of Ethanol with Petrol. b) Improvement of the rural economy through increased agricultural production and in this case, Cassava tubers, as raw materials for the plant. c) Achieving a strong diversified economy able to generate employment. d) Sustain incomes for the citizens.

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e) Diversifying export earnings. Presently Oil accounts for over 90 % of total export earnings while agriculture accounts for less than one percent (1) . f) Provide gainful employment for the teeming population thereby reducing poverty. Currently unemployment rate stands at 10%.

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PRIMARY EQUIPMENTPRIMARY EQUIPMENTPRIMARY EQUIPMENTPRIMARY EQUIPMENT

Distil and dehydrate Equipment in China

Ferment Equipment

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WASTE WATER TREATMENTWASTE WATER TREATMENTWASTE WATER TREATMENTWASTE WATER TREATMENT

Waste water treatment technology

sewage Sludge Biogas

First Phase Processor For Water Treatment

Recycle

discharge

Biogas

PH

Bar

Suction

Sedimentation

Water sealer

Suction

Conditioning UASB Reactor Sedimentation

tank

Sludge tank

SBR Reactor

PH adjusting

Original sewage

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Second Phase Processor For Water Treatment

Biogas Course Jar

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SEWAGE FIREDAMP USE (污水沼氣回用)

沼沼沼沼沼 Biogas Soppy Jar

沼沼沼沼沼Biogas Arid Jar

沼沼處理機房 Biogas Processor RoomProcessor RoomProcessor RoomProcessor Room

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THE POWER PLANT FROM BIOGASTHE POWER PLANT FROM BIOGASTHE POWER PLANT FROM BIOGASTHE POWER PLANT FROM BIOGAS

燃气燃气燃气燃气————蒸汽联合循环发电蒸汽联合循环发电蒸汽联合循环发电蒸汽联合循环发电 THE PLAN OF POWER HOUSE

1.燃气轮机 ( Gas turbine )

2.发电机 ( Generator ) 单轴燃气轮机单轴燃气轮机单轴燃气轮机单轴燃气轮机————蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂 布置示意图布置示意图布置示意图布置示意图 3.离合器 ( Clutch )

4.蒸汽轮机 ( Steam turbine )

5.蒸汽凝结器 ( Condenser )

6.余热锅炉 ( HRSG )

7.空气过滤器 ( Air intake block )

8.转子冷却器 ( Rotor air coolers)

9.烟囱 ( Stack )

10.燃气轮机辅助设施 ( Auxiliary Block GT

)

11.控制系统柜 ( Control valve block )

12.发电机母线 ( Generator Bus bar )

13.发电机断路模块 ( Generator Beaker

module )

14.冷凝水管 ( CW-Pipe )

15.控制氮氧化物注水系统 ( NOx water injection

block )

16.燃油系统 ( Fuel oil block )

17.燃气系统 ( Fuel gas block )

18.主变压器 ( Main transformer )

19.辅助变压器 ( Auxiliary transformer )

20.蒸汽轮机润滑油箱 ( Lube oil –ST )

21.冷凝水泵 ( Condenser pump )

22.补充给水柜 ( Feed water tank )

23.电器系统控制模块 ( Electrical & control

module )

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伯伯 發發機 6GTLB 組 Dynamo

THE PLAN OF POWER HOUSE THE PLAN OF POWER HOUSE THE PLAN OF POWER HOUSE THE PLAN OF POWER HOUSE

多轴燃气轮机多轴燃气轮机多轴燃气轮机多轴燃气轮机————蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂蒸汽轮机联合循环发电厂 布置示意图布置示意图布置示意图布置示意图

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顏巴赫 JM316GS-B 發發機組 Dynamo

伯伯發發機組餘熱鍋爐 Boiler

顏巴赫發發機組餘熱回收鍋爐 Boiler

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THE WATER FLOW OF POWER HOUSE

CHINESE TRANSLATION IN ENGLISH： 1. Dynamos Combination ---- 發發機組發發 . 5. Water Out ----出出 . 2. Hot Water Cistern ---- 蓄熱出蓄 . 6. Water Return ----回出 . 3. Condensation Boiler ---- 冷冷鍋爐 . 7. Condensate ----冷冷冷 . 4. Low Temperature ---- 低低鍋爐 .

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PROJECT SUMMARY 1.0 PROJECT TITLE: CASSAVA INDUSTRIALIZATION PROJECT 2.0 PROMOTERS/TECHNICAL PARTNERS: SINO – US ENERGY & TECHNOLOGY INC . 3.0 FACILITATOR(S) :THE PROPOSED COMPANY 4.0 LOCATION : OGUN STATE , NIGERIA . 5.0 PLANT PRODUCTS/CAPACITY: 5.1 ETHANOL : 3 MILLION LITRES PER YEAR 5.2 FLOUR : 18,000 TONS PER YEAR. 6.0 RAW MATERIALS : 75,000 TONS OF FRESH CASSAVA TUBERS. 7.0 MARKET ORIENTATION: 7.1 ETHANOL : EXPORT ORIENTED (CHINA and US) 7.2 FLOUR : LOCAL MARKET ORIENTED (FLOUR MIILING COMPANIES) 8.0 TOTAL INVESTMENT COST: US$ 16,389,280. 9.0 FINANCING: 9.1 EQUITY: US$ 11,515,160 9.1.1 PROMOTERS/TECHNICAL PARTNERS: US$4,559,960 { Plant, Equipment & Machinery; Factory inputs, Eng and Owner Exps. etc} 9.1.2 AFRICAN DEVELOPMENT BANK {ADB}: US$ 2,530,200 { Civil Works, Buildings & Engineering Fees} 9.1.3 THE PROPOSED COMPANY-: US$4,425,000 {Land Matters, Facilitation, Owner Expenses, Seedlings and Fertilizer} 9.2 LOANS: US$ 4,874,100 10.0 SALES (REVENUE) : US$ 14,460,000 11.0 EXPENDITURE : US$ 9,060,000 12.0 PROFITS BEFORE TAX : US$ 5,400,000 13.0 ESTIMATED TAXES : US$ 800,000 14.0 PROFITS AFTER TAX : US$ 4,600,000 15.0 EMPLOYMENT GENERATION: FARM OPERATIONS : DIRECT: 1,400 INDIRECT: 4,000 PROCESSING PLANT : 150 {Average Annual Salary per Person: Naira 350,000} 15.0 RETURN ON INVESTMENT: Average 30% 16.0 PAYBACK PERIOD : 4 YEARS.