INTRODUCTION
The cost estimates contained in this appendix were based on the objectives detailed below.
OBJECTIVES
The objectives of establishing government freshwater prawn hatchery and demonstration facilities in Sindh are as follows:
- demonstrate hatchery technology to private sector;
- demonstrate grow-out technology to private sector;
- provide training in hatchery and grow-out technology to extension agents;
- supply sufficient 3 g juveniles to stock 10 ha of private grow-out ponds (juveniles to be sold, or provided free at first, to stimulate sector development);
- supply sufficient 3 g juveniles to stock up to 2 ha of government grow-out demonstration ponds.
COST ESTIMATES
The cost estimates which follow are based on the objectives shown above, together with the assumptions noted in Appendix 6. The unit costs given in Appendix 4 have been applied in deriving these cost estimates. It has been assumed that larval rearing will be done at Hawkes Bay, where postlarvae will be retained for a further 15 days before transfer to Chilya, where nursery and grow-out demonstration work will be done. Juveniles supplied to the private sector will come from the Chilya nursery ponds. No land will be required at either site, sufficient already being available at the MFD (Hawkes Bay) and Chilya (GOS) sites.
INITIAL (CAPITAL) COSTS
| PRs | |||||||||||
| Structural: | |||||||||||
| Land | |||||||||||
| Ponds | - 4 × 0.2 ha | 200000 | - | ||||||||
| - 4 × 0.5 ha | 352000 | 552 000 | |||||||||
| Well | 1000000 | ||||||||||
| Hatchery building | - 2000ft2 | 1200 000 | |||||||||
| Office building | - 1 000ft2 | 400000 | |||||||||
| Housing | - 3 × staff | 1 000 000 | 4 152000 | ||||||||
| Equipment: | |||||||||||
| Tanks: | - 2 × 0.2 m3 | 8000 | |||||||||
| - 2 × 0.5 m3 | 14 000 | ||||||||||
| - 5 × 1.0 m3 | 50 000 | ||||||||||
| - 3 × 1.5 m3 | 39 000 | ||||||||||
| - 3 × 3.0 m3 | 57 000 | ||||||||||
| - 5 × 5.0 m3 | 120 000 | ||||||||||
| - 3 × 10.0 m3 | 81 000 | ||||||||||
| - 2 × 25.0 m3 | 120 000 | 489 000 | |||||||||
| Nets | 125 000 | ||||||||||
| Furniture | 200 000 | ||||||||||
| Photocopier | 50 000 | ||||||||||
| Computers/calculator/typewriter | 125 000 | ||||||||||
| UV unit | 100 000 | ||||||||||
| Vehicles: | |||||||||||
| s/w and/or transporter 1 800 000 | |||||||||||
| 4 WD double cabin 1 200 000 | 3000 000 | ||||||||||
| Pumps | 200 000 | ||||||||||
| Generators (2) | 70 000 | ||||||||||
| Rotary blowers (2) | 60 000 | ||||||||||
| Refrigeration and air conditioning | 70 000 | ||||||||||
| Microscopes | 75 000 | ||||||||||
| Balances | 60 000 | ||||||||||
| pH, DO2, Hach meters and kits | 75 000 | ||||||||||
| Oxygen cylinder & accessories | 10 000 | ||||||||||
| Homogenizer/haemocytometer/ refractometer/Secchi disk | 25 000 | ||||||||||
| Sundry laboratory/hatchery | 120 000 | ||||||||||
| Contingency | 150 000 | 5104 000 | |||||||||
| TOTAL CAPITAL | 9 256 000 | ||||||||||
| RECURRING COSTS | |||||||||||
| Staff pay and allowances* | |||||||||||
| 1 Deputy Director | 80 000 | ||||||||||
| 3 Assistant Directors | 180 000 | ||||||||||
| 3 Senior Research Assistants | 90 000 | ||||||||||
| 3 Research Assistants | 66 000 | ||||||||||
| 2 Drivers | 48 000 | ||||||||||
| 2 Laboratory Assistants | 46 000 | ||||||||||
| 4 Peons/cleaners | 88 000 | ||||||||||
| 3 Chowdikars | 66 000 | 664 000 | |||||||||
| Consumables | |||||||||||
| Larval feed | |||||||||||
| - Artemia (30 kg) | 270 000 | ||||||||||
| - prepared feed (30 kg) | 30 000 | 300 000 | |||||||||
| Nursery/grow-out (2.8 ha) | |||||||||||
| -feed | 144 000 | ||||||||||
| - fertilizers/chemicals | 28 000 | 172 000 | |||||||||
| Freshwater | 53 000 | ||||||||||
| Transport | 80 000 | ||||||||||
| Stationery/books | 50 000 | ||||||||||
| Communications/taxes/utilities | 150 000 | ||||||||||
| Repairs | 100 000 | ||||||||||
| Miscellaneous | 25 000 | ||||||||||
| Contingencies | 80 000 | ||||||||||
| [20% capital: PRs 1 834 200 not charged] | - | ||||||||||
| TOTAL RECURRING COSTS | 1 674 000/year | ||||||||||
| RESUME | PRs | ||
| Total annual recurring cost* | 1 674 000 | ||
| Less: | |||
| Income from grow-out | 405 000 | ||
| Income from juveniles | 500 000 | 905 000 | |
| Thus, annual cost of government hatchery and demonstration facility | 769 000 | ||
| SUMMARY | (PRs) | ($US) | |
| Capital cost | 9 256 000 | 270 248 | |
| Annual cost | 1 674 000 | 48 876 | |
| Annual income* | 905 000 | 26 423 | |
| Annual loss/cost** | 769 000 | 22 453 | |
| Annual loss/cost for first 5 years, (capital written off) | 2 620 200 | 76 502 | |
| NOTES ON COST ESTIMATES: | |||
| The government hatchery and demonstration facilities are not commercially viable at the proposed output levels. However, if production remains at the level costed in this report, the cost of running the facility is moderate (if the capital cost is written off) being < $US 23 000/yr (< PRs 770 000/yr). This represents a cost of PRs 1.28 for each 3 g seed produced. However, output could be increased as total demand increases and means to overcome the climatic seasonality of demand are devised. In addition, the availability of hatchery-reared freshwater prawn seed may stimulate prawn farms in Punjab, creating further demand. | |||
| The fact that the freshwater prawn hatchery will be adjacent to the MFD marine shrimp hatchery may make some staff economies possible and/or provide the opportunity to utilize both facilities in a flexible manner. This would be particularly useful, since the MFD hatchery is intended for marine finfish as well as marine shrimp seed production. | |||
| Because of its remit to train and demonstrate technology the government freshwater prawn facility will have both staff and equipment considerably in excess of that required in a private hatchery. A private hatchery should be able to produce 3 g juveniles at PRs 1.0 each, or less. | |||
| * Potential annual income | |||
| - 500 000 juveniles @ PRs 1.0 | 500 000 |
| - 3 000 kg market size @ PRs 135/kg | 405 000 |
| TOTAL POTENTIAL INCOME | 905 000/yr |
