Supply and Demand “Need Analysis”

Please follow the instructions ;

we are conducting a study for a project to build 100 Villa green building design in Saudi Arabia and we conducted a market survey and we came up with the following information attached on PowerPoint 

Please use those information to write up a 2 pages research chapter  

https://oxfordbusinessgroup.com/overview/home-run-reforms-and-housing-investment-feed-real-estate-pipeline

https://www.vision2030.gov.sa/sites/default/files/attachments/THE%20HOUSING%20PROGRAM%20%281%29%20-%20Public%20DP%20F.PDF

https://content.knightfrank.com/research/1063/documents/en/saudi-arabia-residential-market-review-2018-5238

Please use those information to write up a 2 pages research chapter  the above links just information to add up 

Your reference shall be only chapter 2 in the pdf attachment below 

CEM540 ​
(Supply & Demand)​

Team Members​

Yasser Albishi

ABDULMUHSEN GHITH ALGHITH

Waleed Bati Alharbi

MOHAMMAD EMAD AL-JABR

ABDULAZIZ MOHAMMAD ALTARRAZI

MOHAMMAD SHAHER ARAFEH

Agenda
Introduction
– Saudi Arabia Population Growth
Saudi Arabia Household Percentage Supply &Demand
Demand and supply gap in major Cities
Expectation of Supply & Demand in 2021
Acknowledgment
Questions

Saudi Arabia Population Growth

Saudi Arabia Household Percentage Supply &Demand
The government has plans to invest over $100bn in housing by 2023 as it seeks to build 1m homes and increase the home ownership ratio from 47% to 70% as part of its Vision 2030 strategy

Year Population % rate of change % of housing ownership
2018 33,413,660 2.455517068 47%
2019 34,218,169 2.407724865 49%
2020 34,813,871 1.740893851 52%

Saudi Arabia Household Percentage Supply &Demand
The residential supply market in Riyadh remained largely unchanged from 2017 to 2018, with 1.26m units in the market. Similarly, Jeddah’s residential supply is also largely unchanged at 813,000 units, Dammam at 347,000, and Makkah with 384,000. Residential sales prices and rentals softened in 2017 and 2018, decreasing by 3% and 4%, respectively

Year Number of Beneficiaries Number of inhabited Total % rate of increase
2018 220,000 100,00 320,000 7.1
2019 300,041 109,162 409,203 27.88
2020 390,819 138,317 529,136 29.31

Demand and supply gap in major cities

Expectation of Supply & Demand in 2021
As January ,
– 31,356 beneficiaries
– 15,607 already got dwells
The targets of the Sakani program in 2021 – To serve more than 220,000 Saudi Families
– Increase the percentage of housing ownership

acknowledgement

This Photo by Unknown Author is licensed under CC BY-SA

Project Execution Manual

CEM540 Course Project

Instructor

Dr. Ali Shash

Group Names & IDs

Ahmad Abusamha

201381210

Mohannad Zaza 201376850

Mohammad Al-Salti 201803380

Basel Hassan 201708830

25 April 2019

Table of Contents
Introduction: Feasibility Study …………………………………………………………………………………………………………..1

Chapter 1: Project Selection ………………………………………………………………………………………………………………..2

Project Areas …………………………………………………………………………………………………………………………………….2

Project Selection Process …………………………………………………………………………………………………………………..2

1. Brainstorming ……………………………………………………………………………………………………………………………2

2. Selection of Criteria …………………………………………………………………………………………………………………..4

3. Weighted Evaluation. ………………………………………………………………………………………………………………..5

Chapter 2: Need Analysis (Supply and Demand) ………………………………………………………………………………8

Supply and Demand ………………………………………………………………………………………………………………………..8

Waste Current Status ……………………………………………………………………………………………………………………….8

Waste Forecasted Status …………………………………………………………………………………………………………………..9

Energy Current Status …………………………………………………………………………………………………………………….11

• Electricity Supply …………………………………………………………………………………………………………………11

• Electricity Demand ………………………………………………………………………………………………………………11

Chapter 3: Programming …………………………………………………………………………………………………………………..13

1. Functional Programming (FP) ………………………………………………………………………………………………………..13

Purpose of The Project ……………………………………………………………………………………………………………………13

Project Scope and Operation Methodology: ……………………………………………………………………………………13

Cities ………………………………………………………………………………………………………………………………………………13

Methodology ………………………………………………………………………………………………………………………………….13

General Policies ………………………………………………………………………………………………………………………………14

Operational Policies ……………………………………………………………………………………………………………………….14

Functions within the facility …………………………………………………………………………………………………………..15

I. Operational Part ………………………………………………………………………………………………………………………16

II. Management Part…………………………………………………………………………………………………………………16

III. Miscellaneous ………………………………………………………………………………………………………………………19

2. Architectural Programming (AP) ……………………………………………………………………………………………………21

I. Operational Part ………………………………………………………………………………………………………………………21

II. Management Part…………………………………………………………………………………………………………………21

III. Miscellaneous ………………………………………………………………………………………………………………………23

Chapter 4: Site Selection……………………………………………………………………………………………………………………25

Example of our considerations: ………………………………………………………………………………………………………25

Site Selection Process………………………………………………………………………………………………………………………25

1. Brainstorming ………………………………………………………………………………………………………………………….25

2. Selection of Criteria …………………………………………………………………………………………………………………27

3. Weighted Evaluation. ………………………………………………………………………………………………………………27

Chapter 5: Cost Analysis …………………………………………………………………………………………………………………..29

Capital Cost ……………………………………………………………………………………………………………………………………29

Annual Costs ………………………………………………………………………………………………………………………………….33

Revenues: ……………………………………………………………………………………………………………………………………….42

Sensitivity Analysis ………………………………………………………………………………………………………………………..43

References ………………………………………………………………………………………………………………………………………….46

Appendix A ……………………………………………………………………………………………………………………………………….47

Page 1 of 47

Introduction: Feasibility Study

A feasibility study is an analysis that takes all of a project’s relevant factors into account

including economic, technical, legal, and scheduling considerations to ascertain the likelihood

of completing the project successfully. Project managers use feasibility studies to discern the

pros and cons of undertaking a project before they invest a lot of time and money into it.

Feasibility studies also can provide a company’s management with crucial information that

could prevent the company from entering blindly into risky businesses.

It is simply an assessment of the

practicality of a proposed plan or project.

As the name implies, these studies ask: “Is

this project feasible? Do we have the

people, tools, technology, and resources

necessary for this project to succeed?” Also,

“Will the project get us the return on

investment (ROI) that we need and

expect?”. The goal of a feasibility study is to

thoroughly understand all aspects of a

project, concept, or plan; become aware of

any potential problems that could occur

while implementing the project; and

determine if, after considering all

significant factors, the project is viable that

is, worth undertaking.

Feasibility studies are important to business development. They can allow a business to

address where and how it will operate; identify potential obstacles that may impede its

operations and recognize the amount of funding it will need to get the business up and running.

Feasibility studies also can lead to marketing strategies that could help convince investors or

banks that investing in a project or business is a wise choice.

Essentially, a project is conceived to meet market demands or needs in a timely fashion. Various

possibilities may be considered in the conceptual planning stage, and the technological and

economic feasibility of each alternative will be assessed and compared to select the best possible

project. The financing schemes for the proposed alternatives must also be examined, and the

project will be programmed with respect to the timing for its completion and for available cash

flows. After the scope of the project is clearly defined, detailed engineering design will provide

the blueprint for construction, and the definitive cost estimate will serve as the baseline for cost

control. In the procurement and construction stage, the delivery of materials and the erection

of the project on site must be carefully planned and controlled. After the construction is

completed, there is usually a brief period of start-up or shake-down of the constructed facility

when it is first occupied. Finally, the management of the facility is turned over to the owner for

full occupancy until the facility lives out its useful life and is designated for demolition or

conversion.

Page 2 of 47

Chapter 1: Project Selection

The selection phase is an essential part of the study, which affects all future decisions. The type

and style of the project, the provided services, and the offered opportunities should all be

considered while selecting the project.

Project Areas

The project should provide services in one of the following fields;

• Entertainment

• Education

• Health care

• Transportation

• Industrial sector

• Energy production

• Media production

• Environmental

Project Selection Process

The process adopted the concept of “Value Engineering” as much as possible. The steps were

as following;

1. Brainstorming

2. Criteria Selection

3. Weighted Evaluation

1. Brainstorming

In this stage, all ideas are noted without any discussion. This stage includes all initial

ideas, filtered ideas after discussion, and final ideas to go through a criteria-based

assessment. The brainstormed project ideas are as follows:

– The following projects are to be located in the Eastern Province of Saudi Arabia

1. Automated metro connecting the eastern province

2. Bus network

3. Disney land

4. Garbage recycle facility

5. World-Class stadium

6. High-Quality resort

7. Clean power plant (solar)

8. Diplomatic district

9. Car assembly factory

Page 3 of 47

10. Medical city

11. World-Class entertainment city

12. Palm-and-Swords (Saudi symbol) shaped island

13. Palm-Shaped high-rise tower

14. Animal reserve

15. World-Class international airport

16. Airplanes assembly factory

17. Ships factory

18. Nuclear power plant

19. Media production city

– The following projects are to be located in different areas of Saudi Arabia

20. Finnish-Standard schools around the Kingdom

21. Solar roadways around the Kingdom

22. Green-Roofed towers around the Kingdom

23. Roofing of main cities

24. University located in NEOM

Filtered and modified ideas

– All projects are located in the Eastern Province of Saudi Arabia

1. Eastern Province Metro

2. Waste Recycling Facility

3. Car Assembly Factory

4. World-Class Entertainment City

5. World-Class Stadium

6. Palm-and-Swords-Shaped Island

7. High-Rise Tower

8. World-Class International Airport

9. Media Production City

Final Project Ideas to go through the criteria-based assessment

– All projects are located in the Eastern Province of Saudi Arabia

1. Dammam Metro

2. Waste Recycling Facility
3. Car Assembly Factory
4. World-Class Entertainment City
5. World-Class Stadium

6. High-Rise Tower

7. Media Production City

Page 4 of 47

Projects Definitions

1. Dammam Metro:

This project is a transportation proposal to connect Dammam city’s districts.

2. Waste Recycling Facility:

This project aims to collect wastes and recycle them into raw material that can be

used again.

3. Car Assembly Factory:

A factory to import car parts from original manufactured and assemble them.

4. World-Class Entertainment City:

The project aims to establish a huge entertainment city that combines all possible

activity in one place.

5. World-Class Stadium:

An elegant sports stadium that meets and exceeds the highest standards to host

local and international events.

6. High-Rise Tower:

A traditional +600-meter-high tower that includes offices, hotels, apartments, and

commercial shops.

7. Media Production City:

This project is a complex that consists of all aspects of media production

requirements such as; studios, equipment, and offices for media production

companies.

2. Selection of Criteria

A.

Supply and Demand

B. Employment Opportunities

C. Environmental Impact

D. Profitability

E. Compliance with Governmental Plans

F. Constructability

G. Completion Time

Criteria Definitions

A. Supply and Demand:

Defines the need for a specific project based on the existing and in-progress

supply of similar projects and the present and anticipated future demand.

Page 5 of 47

B. Employment Opportunities:

Describes how many jobs will be created in the local area of a specific project.

C. Environmental Impact:

Measures the effects of a project on all environmental features such as air, water,

soil and living creatures around the project location.

D. Profitability:

Evaluates the relative costs (life-cycle cost LCC) and revenues, including return

on investment ROI and profits, during the service life of a project.

E. Compliance with Governmental Plans:

Evaluates to what extent a specific project meets the governmental visions and

plans toward achieving its goals.

F. Constructability:

Evaluates the complexity of the engineering and construction of a project.

G. Completion Time:

Describes the expected completion time of a certain project relative to similar

ones with close scope and features.

3. Weighted Evaluation.

In this stage, a criteria-based assessment will be utilized, in which all criteria will be

compared to each other and score a preference. Then all projects will be evaluated

against each criterion.

The following table 1.1 shows the criteria scoring matrix, in which all criteria judged to

each other and given a score based on preference. This final score will be summed and

used later for weighting each criterion. The results of the sums and weights are shown

in the next table 1.1.

Page 6 of 47

Table 1.1:

Criteria Scoring Matrix

The following table 1.2 shows the analysis matrix, in which all criteria are listed with

their raw scores and weights. Each project Is given a performance score regarding each

criterion and that is multiplied by the weight of that specific criterion to find the

weighted score of each alternative, or project in this case. These weighted scores are

summed for each project to find the total. Finally, the project is given a rank starting

from the highest to the lowest in total. As shown in the matrix, the first rank and the

selected project is the “Waste Recycling Facility” project.

Table 1.2: Analysis Matrix

Page 7 of 47

Each member of the group performed the criteria scoring the matrix and the analysis

matrix individually and the tables above show the overall average of all results.

As mentioned above, the decision of project selection was set on “Waste Recycling

Facility.” However, this idea was developed later based on the professor suggestion to

have the project as an electricity generating plant. So, the final selected project is “Waste

to Energy Facility,” or WTE Facility. It is basically collecting the municipal solid waste

and convert it to energy through burning any combustible wastes to boil water and

generates steam. This steam creates a pressure that moves turbines and the final product

of this procedure, is electricity.

Page 8 of 47

Chapter 2: Need Analysis (Supply and Demand)

The eastern province is the largest region in the Kingdom of Saudi Arabia (KSA), the main cities

of this region are Dammam, Dhahran, Khobar, Sihat, and Qatif. The location of this district is

such that it holds huge quantities of oil and hence development has thrived in this part of KSA.

The eastern province is the backbone of KSAs economy and is the center of attraction for

multinational companies willing to invest in the oil business. Excellent transport,

communications, and electricity facilities have made it an ideal region for not only investment

but living too. The growth rate of urbanization has been tremendous as it has attracted tourists

and families from the entire KSA. The living standards have improved which has resulted in

generating large quantities of Municipal Solid Waste (MSW).

Supply and Demand

Supply and demand are perhaps one of the most

fundamental concepts of economics and it is the backbone of

a market economy. Demand refers to how much (quantity)

of a product or service is desired by buyers. The quantity

demanded is the amount of a product people are willing to

buy at a certain price; the relationship between price and

quantity demanded is known as the demand relationship.

Supply represents how much the market can offer. The

quantity supplied refers to the amount of certain good

producers are willing to supply when receiving a certain

price. The correlation between price and how much of a

good or service is supplied to the market is known as the

supply relationship. Price, therefore, reflects supply and demand.

Waste Current Status

In 2017, about 15.3 million tons of MSW

were generated in KSA. It was approximated

to be 1.8 kg per day produced by one

individual. A certain percentage of organic

waste is converted into fertilizer. Organic

Waste represents about 40% of the total

MSW. The huge expansion and growth of

the kingdom cities is a big challenge with

regard of disposing of the MSW in which the

current practices cause a lot of

environmental such as the emissions of
Figure 2.1: Percentages of waste treatment

Page 9 of 47

carbon dioxide and methane that can cause global warming and Pollution of groundwater and

other and economic issues. Figure 2.1 shows the percentages of the waste that is being recycled

out of the total MSW that is being generated, from that figure we can see that a huge demand

for recycling and other methods to get rid of the MSW is hugely demanded.

Waste Forecasted Status

In this report we tried to forecast the population growth to estimate the waste supply at our

project’s service life, the present and past population record for the city can be obtained from

the count population records. After collecting these population figures, the population at the

end of the design period is predicted using exponential growth method, as shown in figure 2.2.

We estimated the population to be around 9 million for the eastern province of (KSA), The

MSW production rate was assumed to be 1.4 kg/capita/day based on research made by Prof.

Omer Aga. So, we have a total 4.1million Tons of waste annually in 2025, as shown in figure

2.3. Also, to estimate the current usage of waste generated we made a list of all current waste

recycling factories, as shown in table 2.1 and we plotted the cumulative number of factories

versus their establishment date and we forecasted the future number of factories, Figure 2.4,

that are going to use the same supply of waste as our proposed project, today there exist 6

factories and we are expecting this number to increase to 8 factories in the year 2025.

Figure 2.2: Forecast of the future population based on the population growth rate

Page 10 of 47

Figure 2.3: Forecast of the anticipated amount of MSW production

Table 2.1: List of current factories that use MSW as raw materials for their productions

Figure 2.4: Forecast of the expected number of factories based on the trend

0

1

2

3

4

5

6

7

8

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034

W
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e

ra
te

d
(

M
il

li
o

n
s

T
o

n
s/

Y
e

a
r)

Years

MSW Forecast in Eastern Province

Factory Industrial City Establishment Year Phone Email

كة السعودية إلعادة التدوير للورق والمخلفات الشر Dammam 2nd. Industrial City 1984
0138123880

yousseri@saudipaper.com

ي لتدوير البالستيك
المصنع الفن Al-Ahsa 1st. Industrial City 2004 0135341199 techno.plast@aljawadgroup.net

مصنع الجديد العالمي لتدوير البالستيك والمعادن Dammam 2nd. Industrial City 2012 0138183064 shengzhou888@hotmail.com

كة معمار العقارية القابضة إلعادة تدوير المطاط مصنع شر Al-Ahsa 1st. Industrial City 1995 0135331078 k.kh7@hotmail.com

مصنع صحراء جازان العادة تدوير المطاط Jazan Industrial City 2003 0173274681 mudhesh62@gmail.com

كة عالم التدوير االبداعي للبالستيك
شر Jeddah 2nd. Industrial City 2004 0126081082 a.lahza@crwcksa.com

مصنع احمد عبدهللا الخزيم للبالستيك وتدوير Riyadh 2nd. Industrial City 2002 0112651066 kuzpprf@hotmail.com

كة الخليج لتدوير البالستيك مصنع شر Jeddah 1st. Industrial City 1991 0126145252 info@gulffactory.com

Page 11 of 47

Energy Current Status

• Electricity Supply

As per tables generated by Saudi Electric Company, we can see the actual supply for

electricity from previous years as shown in table 2.2, those data were used to forecast

the anticipated future state of electricity supply, as shown in figure 2.5.

Table 2.2: The actual supply for electricity in the previous years

Figure 2.5: Forecast of the anticipated amount of supplied electricity based on the trend of Electricity Company.

• Electricity Demand

The electricity demand has grown at an average rate of 7% between the years 2006 to

2016 in KSA, as shown in table 2.3. The current electricity peak demand is about 79

Gigawatt (GW) and is projected to reach 250 GW by the year 2035. The current needs of

electricity are typically met through conventional heavy oil, diesel, and gas power plants

Year

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

39.242

36.949

34.823

50.000

Generation Capabilities (GWh)

A
ct

u
a

l
D

a
ta

27.018

27.711

32.301

79.000

74.300

69.000

65.506

58.462

53.588

51.148

44.485

Page 12 of 47

spread across the country. Considering the huge gap between generation capability and

future demand of KSA, as shown in figure 2.6, the Waste to Energy (WTE) is a very

viable option.

Table 2.3: The actual demand for electricity in the previous years

Figure 2.6: Forecast of the anticipated amount of needed electricity based on; population growth rate and

potential future investments

Based on the previously mentioned supply and demand charts, and the fact that waste

generates 600KWh of electricity/Kg, we took our project’s capacity is 1 million ton/year, which

will generate around 600 GWh of electricity per year and will contribute to the disposal of 25%

of total area waste removal.

Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

55.38

A
ct
u
a
l
D
a
ta

Electrical Demand (GWh)

23.09

24.59

26.18

27.89

29.70

31.63

33.68

39.48

42.25

45.20

48.37

51.75

59.25

63.40

Page 13 of 47

Chapter 3: Programming

1. Functional Programming (FP)

Purpose of The Project

The purpose of the project is disposing of the municipal solid waste in the Eastern Province by

converting it into electricity.

Project Scope and Operation Methodology:

This facility is to handle 1 million ton of the total municipal solid waste generated in the cities

of the Eastern Province per year and convert it into electricity in which it will be transferred

directly to Saudi Electricity Company.

Cities

• Dammam

• Dhahran

• Khobar

• Sihat

• Qatif

Methodology

• Crane transfers trash to incinerator.

• Burning the trash boils water, creating steam.

• The steam turns a turbine, generating electricity.

• Heavy metals and toxins are filtered out of emissions.

• Ash left over from burning trash is removed for recycling and disposal.

Figure 1.1 shows a sketch of conceptual plant operation (Rodríguez, 2011).

Page 14 of 47

Figure 3.1: Plant Operation Concept

General Policies

– There will be no segregation between males and females in the working area.

– All the labor workforce shall be only males.

– The facility will be operated by six departments working under the umbrella of a

Management Board with all reporting to it.

– The complete staff team shall start working from day one.

– There will be a fence surrounding the factory with a security gate and CCTV around

the parameter and in sensitive areas.

Operational Policies

– The factory Capacity is 1 million ton of municipal solid waste per year.

– The facility shall handle 280 Ton of wastes per hour.

– The working day will be 10-hour long.

– The working days will be 6-day a week.

– There will be a lunch break from 12 to 1.

Page 15 of 47

Functions within the facility

Figure 3.2: Hierarchy of Facility Functions

Waste to Energy Plant

Bill of Boards

Operations

Receiving the
waste

Dumping the
waste

Feeding the waste
to incineration

units

Burning the waste

Converting the
waste into energy

Toxic Filtering

Removing
Residue

Management

General Manager

R&D Department

P&S Department

Finanacial
Department

HR Department

QC Department

O&M Department

Miscellaneous

Miscellaneous

Security

Vehicles Parking

Collecting the
waste

W.C.

Prayer Room

Storage

Page 16 of 47

I. Operational Part

This part will be allocated for operational activities to take place and run the factory. The basic

operations will be considered as follows:

o Receiving the Waste:

▪ The facility will only receive combustible waste.

▪ The sorting and separation of combustible and non- combustible waste will be at the

landfill.

▪ Waste sorting will be subcontracted.

▪ This operation requires 5-labors.

o Dumping the Waste:

▪ The waste will be dumped directly in the 4-incineration units.

▪ The same 5 labors from the previous operation

▪ 1-extra incineration unit as a back-up.

o Feeding the Waste to the Incinerators:

▪ A mobile crane must be provided next to the 4 units.

▪ One operator labor is required.

o Burning the waste:

▪ The waste will be burnt in the incineration unit using gas.

▪ The gas is supplied through external lines.

▪ One labor is required to initiate and monitor the burning process.

o Converting the waste into Energy:

▪ There will be no need for workforce labors.

▪ The whole process will be automated.

▪ The electricity generated will be transferred directly to SEC

▪ All the 4-incineration units will be connected to one-boiler and one-turbine.

o Toxic Filtering:

▪ There will be no need for workforce labors.
▪ The whole process will be automated.

o Collecting the residue for disposal:

▪ Trucks will use the space delegated for dumping the waste into the incinerator.

II. Management Part

This part will be allocated to contain normal office and administration activities (Non-

production activities). The following departments and personnel will take place in this area.

Page 17 of 47

1. Bill of Boards

▪ Bill of boards will be consisting of 5-persons.

▪ The board will come to the facility on a weekly basis.

2. General Administration Department.

This section represents the head of the management and it will be responsible for the

following:

▪ Coordination between the various departments.

▪ Establishing strategic plans.

▪ Achieving organization goals.

The staff needed to achieve the required functions and targets is as follows:

– A number of one General Manager.

– A number of one Assistant.

– A number of one secretary.

3. Research and Development Department.

The objective of this department is to improve the methods and means applied by the

facility by conducting comprehensive data collection and running different simulation

studies and experiments. The basic functions of this department are listed as the

following:

▪ Data Collection.

▪ Optimizing the incineration process.

▪ Reducing the negative impact of the process’s side-products.

▪ Conducting different studies and experiments.

The staff needed in order to achieve the required functions and targets is as follows:

– A number of three specialized scientists.

– A number of two Assistant technicians.

– A number of one General Assistant.

– Scientists and technicians with their offices partitioned in the lab.

4. Production and Supply Department.

This department is mainly responsible for supply and production issues such as tracking

the exports and the imports of the facility. The basic functions of this department are

listed as the following:

▪ Supervising the operations running the facility.

▪ Quality Control issues.

▪ Recording the data for future purposes.

The staff needed in order to achieve the required functions and targets is as follows:

Page 18 of 47

– A number of one Manager.

– A number of two Engineers.

– A number of two supervisors.

5. Financial Department.

This department is mainly responsible for tracking and monitoring the funding issues

which includes all the savings records as well as the different categories of all costs

involved in the facility in the long term beside the short term:

▪ Recording daily expenses and sales.

▪ Preparing annual reports.

▪ Preparing income and financial statements.

▪ Tracking invoices and bills.

▪ Dealing with the banks.

The staff needed in order to achieve the required functions and targets is as follows:
– A number of one Manager.

– A number of two accountants.

– A number of one assistant.

6. Human Resource Department.

This department is mainly responsible for the recruitment process issues of the employees

and their rights in terms of monetary value. The following list shows the tasks of the

department:

▪ Recruiting new employees.

▪ Accepting internship students.

▪ Evaluating the employees and their performance.

▪ Recording daily attendance.

▪ Following up with the related governmental agencies.

The staff needed in order to achieve the required functions and targets is as follows:
– A number of one Manager.

– A number of one Recruiter.

– A number of two assistant.

– A number of one PR (Public Relation).

7. Quality Control Department.

This department is mainly responsible for quality control.

▪ Establishing standard means and methods.

▪ Applying international standards.

▪ Conducting periodical inspections.

Page 19 of 47

▪ Controlling the residue from the incineration process to comply with the

environmental standards.

The staff needed in order to achieve the required functions and targets is as follows:
– A number of one Manager.

– A number of one engineer.

– A number of two inspectors.

8. Operation and Maintenance Department.

This department is mainly responsible for equipment and devices testing and

maintaining.

▪ Making sure that equipment is performing well.

▪ Establishing the testing criteria.

▪ Evaluating the efficiency of the equipment.

▪ Recording the results periodically.

▪ Setting the initiation process.

The staff needed in order to achieve the required functions and targets is as follows:
– A number of one Manager.

– A number of three engineers.

III. Miscellaneous

o Meeting Room:

The meeting room where meeting between:

▪ Employees

▪ Various departments

▪ With visitors

▪ Management Board

o Restaurant:

▪ Serves all the personnel working in the project.

▪ Capacity to serve a maximum of 40 persons

▪ Operates 2-hours daily, 11:00 AM – 1:00 PM

o Rest Rooms:

▪

This area will be provided for workers to rest in by providing a calm environment and

comfortable seats for 10 workers at once.

▪ The room shall be used by all staff and labors.

Page 20 of 47

o First Aid Clinic:

▪ This area will be designated for minor injuries treatment.

▪ Staffed with a one-general practitioner

▪ Staffed with one- nurse

o Waiting hall:

▪ This area will function as a lobby for the facility.

▪ This area will contain a desk for the reception, seats, and tables.

▪ This area will serve 10-persons a maximum capacity.

o Parking:

There is 31 staff working in the administrative part, assuming each person will own 1 car,

we end up with a total of 31 parking slots. However, considering the special needs people,

visitors and a potential increase in employees count, the slots number will jump from 31

to 40 slots, two of them are for special needs people.

o Male Mosque:

For 20 people as a capacity.

o Female Mosque:

For 20 people as a capacity.

o Storage:

This area will include all the maintenance tools required and any other things.

o Toilets:

▪ 1 for males which can serve 6 people at once, one of them for special needs people.

▪ 1 for females which can serve 6 people at once, one of them for special needs people.

▪ 1 for labors which can serve 5 people at once.

o Security:

▪ Security staff is responsible for securing the facility parameters.

▪ There will be a security monitoring room to monitor the CCTV.

▪ There will be assigned 6 security guards to monitor over 3 shifts (8-hours per shift).

▪ There will be a cabinet on the gate to check for authorization on entry.

▪ There will be 1 resident security guard that will attend the night shift and one security

guard for the morning.

Page 21 of 47

2. Architectural Programming (AP)

I. Operational Part
This part will be allocated for operational activities to take place and run the factory. The basic
operations will be considered as follows:
o Receiving the Waste:

The labors will be at the site and will have no rooms/ area for rest or breaks.

o Dumping the Waste:

▪ Truck space must be provided next to each unit at dimensions of 10-m by 5-m.

▪ There must be an accessible road for the truck to the incinerators with at least 4-m in

width.

o Feeding the Waste to the Incinerators:

▪ This function would need an incineration area of 20-m by 20-m at a depth of 2-m.

▪ Since the waste quantity might not reach the maximum capacity soon, the incineration

unit will be split into 4-units, each 10-m by 10-m by 2-m.

▪ A space of 10-m by 10-m is needed for the crane.

o Converting the waste into Energy:

Space must be provided for electricity tower having dimensions of 4-m by 4-m.

o Toxic Filtering:

▪ A space for the filtration unit must be provided.

▪ Space dimensions (in the roof) are 2-m by 2-m by 2-m.

o Collecting the residue for disposal:

A space to dump the residue at is needed with a volume of 2-m by 2-m by 2-m.

II. Management Part

This part will be allocated to contain the spaces needed to serve the purpose of each function.

1. Bill of Boards

▪ There will be no allocated room/area.

▪ The meeting will be held at the meeting room provided in the building specified

dimensions in miscellaneous.

Page 22 of 47

2. General Administration Department.

The spaces needed in order to achieve the required functions and targets are as follows:

▪ A number of one 6×5 office room for the General Manager.

▪ A number of one 3×5 office room for the Assistant.

▪ A number of one 3×5 office room for the secretary.

3. Research and Development Department.

In order to achieve the expected responsibilities and functions by the department’s staff,

the following space-area shall be provided within the facility:

▪ A number of one 18×6 Lab for three scientists and three technicians with their offices

partitioned in the lab.

4. Production and Supply Department.
The spaces needed in order to achieve the required functions and targets are as follows:

▪ A number of one 6×5 office room for the Manager.

▪ A number of two 3×5 office rooms for the Engineers.

▪ A number of two 3×5 office rooms for the supervisors.

5. Financial Department.
The spaces needed in order to achieve the required functions and targets are as follows:
▪ A number of one 6×5 office room for the Manager.

▪ A number of two 3×5 office rooms for the accountants.

▪ A number of one 3×5 office room for the assistant.

6. Human Resource Department.
The spaces needed in order to achieve the required functions and targets are as follows:
▪ A number of one 6×5 office room for the Manager.

▪ A number of one 3×5 office room for the Recruiter.

▪ A number of two 3×5 office rooms for the assistants.

▪ A number of one 3×5 office room for the PR (Public Relation).

7. Quality Control Department.
The spaces needed in order to achieve the required functions and targets are as follows:
▪ A number of one 6×5 office room for the Manager.

▪ A number of one 3×5 office room for the engineer.

▪ A number of two 3×5 office rooms for the inspectors.

Page 23 of 47

8. Operation and Maintenance Department.
The spaces needed in order to achieve the required functions and targets are as follows:
▪ A number of one 6×5 office room for the Manager.

▪ A number of three 3×5 office rooms for the engineers.

III. Miscellaneous

o Meeting Room.

It will be a luxury meeting room to accommodate 30 people at once with an area of 70m2.

o Restaurant:

80-m2, assuming each person will use 2-m2.

o Rest Rooms:
This area will be provided for workers to rest in by providing a calm environment and

comfortable seats for 10 workers at once with a total area of 50-m2.

o First Aid Clinic:

▪ 1-room for doctor and diagnose

▪ 1 hall for a nurse (the nurse will function also as a receptionist).

▪ It will be to accommodate 1 person at once with an area of 50-m2.

o Waiting hall:

The area allocated for the hall will be 45-m2

o Parking:

Each slot will 2.75-m×5.5-m according to the international standards.

o Male Mosque:

Total area of 30-m2.

o Female Mosque:
Total area of 30-m2.

Page 24 of 47

o Storage:

An area of 25-m2.

o Toilets:

▪ 1 for males with area 15m2

▪ 1 for females with area 15m2

▪ 1 for labors with area 13m2

o Security:

▪ The gate shall be 6-m by 6-m

▪ The monitoring room shall be 4-m by 4-m

Finally, the total built area can be determined to be approximately 2,316 m2

Page 25 of 47

Chapter 4: Site Selection

At this phase of the final parts of the project, most of the details are known. The need analysis,

or supply and demand study, was performed. The FP and the AP are completed and were

utilized to select several potential sites that meet the expectations to some extent.

In the selection process, several aspects were considered such as; functional, social,

environmental, safety and logistical features. The sites safety was the top priority. The final list

included four site locations.

Example of our considerations:

• For environmental and safety consideration, the factory cannot be placed inside a city

• For zoning consideration, the factory must be placed in an industrial zone

• For logistics consideration, the factory should be placed near a landfill

Site Selection Process

The process adopted the concept of “Value Engineering” as much as possible. The steps were
as following;
1. Brainstorming
2. Criteria Selection
3. Weighted Evaluation

1. Brainstorming

In this stage, all ideas of possible locations are listed. The final list will go through a

criteria-based assessment to choose the best one. The suggested locations are as follows:

1. Dammam 2nd Industrial City

Page 26 of 47

2. Dammam 3rd Industrial City

3. Al Hofuf, WMS:

4. Next to GEMS, IWMC Dammam:

Page 27 of 47

2. Selection of Criteria

A. Zoning and Land Use:

B. Land Value

C. Logistics

D. Accessibility

E. Public Safety

F. Area Services

Criteria Definitions
A. Zoning and Land Use:

The use of the land that this project is planned to be built on and the zone of

which this land is categorized.

B. Land Value:

The measure of how much the plot of land is worth, not counting any buildings

but including improvements such as better drainage.

C. Logistics:

The management of the flow of things between the point of origin and the point

of consumption in order to meet requirements of customers or corporations, in

our case it is the flow of waste from the origin (Landfills) to the facility).

D. Accessibility:

The ease of which the employee can get to the facility and the daily consumables

such as restaurant and grocery resources could be accessed.

E. Public Safety:

Public Safety refers to the welfare and protection of the public, and how the site

could potentially affect the public around.

F. Area Services:

How easy could the basic utilities (water and gas mainly here) be delivered to

the site as needed.

3. Weighted Evaluation.

In this stage, the criteria-based assessment will be utilized, in which all criteria will be

compared to each other and score a preference. Then all locations will be evaluated

against each criterion.

The following table 1.1 shows the criteria raw scores, in which all criteria judged to each

other and given a score based on preference. This final score is summed and used later

for weighting each criterion.

Page 28 of 47

Table 4.1: Criteria Scoring Matrix

The following table 1.2 shows the analysis matrix, in which all criteria are listed with

their raw scores and weights. Each project is given a performance score regarding each

criterion and that is multiplied by the weight of that specific criterion to find the
weighted score of each alternative, or project in this case. These weighted scores are
summed for each project to find the total. Finally, the project is given a rank starting
from the highest to the lowest in total. As shown in the matrix, the first rank and the

selected location is the “Dammam 3rd Industrial City” location.

Table 4.2: Analysis Matrix

Each member of the group performed the criteria scoring the matrix and the analysis
matrix individually and the tables above show the overall average of all results.

Criteria Scoring Matrix

Criteria Raw Scores

A. Zoning and Land Use 9

B. Land Value 2

C. Logistics 8.5

D. Accessibility 7

E. Public Safety 8

F. Area Services 5

Page 29 of 47

Chapter 5: Cost Analysis

Capital Cost

The capital cost of the plant in the Eastern province was estimated at S.R. 416 million. This

estimate was done based on similar capacity recently built plants, assuming that the WTE

technology has a high-quality design with a grate-fired furnace, empty vertical passes and a

vertical boiler followed by a semi-dry flue gas cleaning and a 75m-80m stack. Since capital costs

are very dependent on world steel price indices and on various local factors, the estimate is

expected to be within +/- 20% accuracy.

1. Design Cost

Based on previously done projects we estimated the designed cost to be S.R. 50

million.

2. Construction Cost

The construction cost shall be estimated by applying the (ratio estimate method) which is

based on adoption the exponential rule to find the cost of a project or a component of the

same type but of a larger or smaller size. We estimated the construction cost to be S.R. 330

million.

The estimate method used is roughly made

with an expected +/- 20% accuracy.

Cp = Ce (Sp/Se) f

Where;

– p = Proposed

– e = Existing

– S = Size/capacity (annual waste ton)

– C = Cost

– f = Exponential factor

Knowing;

– Ce = S.R. 225 million

– Sp = 1000,000 tons of waste annually

– Se = 600,000 tons of waste annually

– F = 0.75

Thus,

Cp = Ce (Sp/Se) f

= 225 (1000,000 / 600,000) 0.75

= S.R. 330 million

Page 30 of 47

This part will include the cost of the construction of the facility (the office building and the

factory) with all furnishings, machines and equipment’s are in place and installed. Moreover,

it will include connecting the machines and equipment to the electricity grid. The furnishings,

machines, and equipment are listed below, those prices are already included in the

construction cost.

o Technologies:

▪ 33-Desktop Computers

Assuming an excellent performance PC, the cost of an Apple iMac, 9000 S.R for each.

Total = 9000 * 33 = 297,000

▪ 12-Printers

Assuming each will cost 800 S.R., total cost of 9,600

▪ 31-Telephones

Assuming each will cost 300 S.R., total cost of 9,300

▪ 2-WiFi Routers

Assuming each will cost 700 S.R., total cost of 1,400

▪ 15 CCTV Cameras (STANDARD REVIEW)

Assuming each will cost 650 S.R., total cost of 9,300

▪ 1 – 65 Inch Screen

Assuming each will cost 4000 S.R., total cost of 4,000

▪ 1- Projector

Assuming each will cost 800 S.R., a total cost of 800

▪ 3-E-Oven

Assuming each will cost 300 S.R., total cost of 900

▪ 2- Microwaves

Assuming each will cost 300 S.R., total cost of 600

▪ 2- Coffee maker

Assuming each will cost 650 S.R., total cost of 1300

▪ 2-Fridge

Assuming each will cost 2500 S.R., total cost of 5,000

▪ 2-Lab Fume Hood

Assuming each will cost 3000 S.R., total cost of 6,000

Page 31 of 47

o Office Furniture:

▪ 33-office desks

Assuming each will cost 300 S.R., total cost of 9,900

▪ 33-Seats

Assuming each will cost 250 S.R., total cost of 8,250

▪ 70-Mini-Tables

Assuming each will cost 50 S.R., total cost of 3,500

▪ 100 square meter Curtains

Assuming each square meter will cost 50 S.R., total cost of 5,000

3. PPM Cost:

Based on research papers that were done it states that the PPM costs between 7-11% of

the total installed cost, so we assumed it to be 9% of the TIC, the estimate is roughly made

with an expected +/- 20% accuracy.

Therefore, the PPM cost is 30 million.

4. Equipment Cost

The total equipment cost is 21,350,000 S.R.

▪ 41-

Waste Trucks

The capacity of the truck is assumed to be 11 m3.

The amount of waste that a truck can haul is calculated through the following

formula:

Density = Mass/Volume

Page 32 of 47

The density of municipal solid waste is approximately equal to 450 kg/m3. Then

the maximum mass that a truck can haul is as follows:

Mass = 450 kg/m3 * 11 m3 * 10-3 Ton/Kg = 5 Ton

The daily waste supply to reach the factory capacity that has been determined in

supply and demand analysis = 2800 Ton/day

The average trip duration is estimated by summing up the following information

obtained from the site selection analysis

– 30 minutes (From the landfill to the factory)

– 30 minutes (From the factory to the landfill)

– 20 minutes (Collecting and maneuvering at the landfill)

– 10 minutes (Dumping and maneuvering at the factory)

– 15 minutes (speed limit and contingency)

– The average waste in Tons/ truck/hour arriving at the facility:

5 𝑇/𝑇𝑟𝑢𝑐𝑘

1.75 ℎ𝑟𝑠
∗ 24 ℎ𝑟 = 69 Ton/Truck (𝑇ℎ𝑟𝑒𝑒 8 − ℎ𝑜𝑢𝑟𝑠 𝑠ℎ𝑖𝑓𝑡𝑠)

Page 33 of 47

– A number of trucks needed:

2800-Ton/ 69-Ton/truck ≈ 41 trucks

– Assuming each will cost 500,000 S.R., total cost = 20,500,000 S.R.

▪ 1-Labor bus (20 passengers)

Since the number of the workforce is six labors, a bus with 20 passengers’ capacity

would be sufficient.

Assuming each will cost 150,000 S.R., the total cost of 150,000 S.R.

▪ 1-(10 Ton) Crane

Assuming each will cost 700,000 S.R., the total cost of 700,000 S.R.

Annual Costs

1. O & M Costs:

• Vehicles

▪ Waste Trucks:

– Insurance.

4000 SR for each truck per year.

The total insurance cost would be 4000 SR * 41 trucks = 164,000 SR/year.

– Maintenance and Repairs.

Assuming 10 years for the truck useful life.

Assuming the tires’ cost is 2625 for each tire. There are 14 wheels for each truck.

Then the cost of the wheels for all trucks is:

Tires Cost = 41 trucks * 14 wheels/truck * 2625 SR/wheel

Tires Cost = 1,506,750 SR

Net Cost = FC – Tires = 20,500,000 – 1,506,750 = 18,993,250 SR

Depreciation = 18,993,250 / 10 =1,899,325

So, the cost of maintenance and repairs can be considered as 1,899,325 SR/year

– Tires Replacement and Repairs.

Assuming 5 years for the tires’ useful life.

Tires cost = 1,506,750/5 = 301,350 SR/year

Page 34 of 47

– Fuel and lubrication.

Fuel consumption = 0.04 x 250 x 0.7 = 7 gal/hr.

Fuel (Diesel) cost = SR 0.38 /Liter.

1 Gallon = 3.8 Liters

Fuel cost of consumption = 7 x 3.8 x 0.38 = 10.1 SR/hr.

Annual cost of fuel = 10.1 x 41 x 24 x6 x 52 = SR 3,100,780/year

▪ 1 Labor bus:

– Insurance.

3000 SR for the bus per year.

– Maintenance and Repairs.

Assuming 10 years for the bus useful life.

Assuming the tires’ cost is 2000 for each tire. There are 4 wheels for each truck.

Tires Cost = 8000 SR/wheel

Net Cost = FC – Tires = 150,000 – 8000 = 142,000 SR

Depreciation = 142,000 / 10 =14,200 SR

– Tires Replacement and Repairs.
Assuming 5 years for the tires’ useful life.

Tires cost = 8000/5 = 1600 SR/year

– Fuel and lubrication.

Fuel consumption = 0.04 x 150 x 0.7 = 4.2 gal/hr.

Fuel (Diesel) cost = SR 0.38 /Liter.
1 Gallon = 3.8 Liters

Fuel cost of consumption = 4.2 x 3.8 x 0.38 = 6.1 SR/hr.

Annual cost of fuel = 6.1 x 1 x 10 x 6 x 52 = SR 19,032/year

• Equipment

▪ Crane

– Insurance.

7000 SR for the crane per year.

– Maintenance and Repairs.

Assuming 10 years for the truck useful life.

Net Cost = FC – Tires = 700,000– 0 = 700,000 SR

Depreciation = 700,000/ 10 = 70,000

So, the cost of maintenance and repairs can be considered as 70,000 SR/year

Page 35 of 47

– Fuel and lubrication.
Fuel consumption = 0.04 x 250 x 0.7 = 7 gal/hr.

Fuel (Diesel) cost = SR 0.38 /Litre.

1 Gallon = 3.8 litres

Fuel cost of consumption = 7 x 3.8 x 0.38 = 10.1 SR/hr.
Annual cost of fuel = 10.1 x 41 x 24 x6 x 52 = SR 3,100,780/year

▪ Turbine:

Costs average would be SR 4500/MW annually.

Total annual cost = 4500 SR/MWh * 600 MWh = 2,700,000 SR/year

▪ Boiler:

Costs average would be SR 1300/MW annually.

Total annual cost = 1300 SR/MWh * 600 MWh = 780,000 SR/year

▪ Filtration unit:

– O&M

Costs average would be SR 200/MW annually

– Replacement

The filter shall be replaced each 2 months for a cost of 10,000

Total annual cost = 200 SR/MWh * 600 MWh + 60,000 = 840,000 SR/year

▪ Incineration Unit:

Costs average would be SR 700/MW annually.

Total annual cost = 700 SR/MWh * 600 MWh = 420,000 SR/year

2. Land Rental:

As mentioned in the table that was taken from “MODON”, and as we estimated the area

to be 2400 m2, based on AP and FP, assuming additional areas for other functions we

assume it 4000 m2.

Based on the below prices, shown in table 5.1 we have a cost of (two S.R. /m2 * 4000m2 =

8000 S.R./year)

Page 36 of 47

تفاصيل أسعار تأجير المتر المربع في المدن الصناعية بالسعودية )لاير(

1440عام 1439عام 1438عام 1437عام 1436عام المدينة الصناعية

4 4 3 3 2 الرياض األولى
2 2 2 2 2 الرياض الثانية

4 4 3 3 2 جدة األولى

4 4 3 3 2 الدمام األولى
2 2 2 2 2 الدمام الثانية

2 2 2 2 2 دمام الثالثةلا
2 2 2 2 2 االحساء األولى

2 2 2 2 2 القصيم األولى
2 2 2 2 2 المدينة المنورة

2 2 2 2 2 حائل
1 1 1 1 1 عسير

1 1 1 1 1 الجوف

1 1 1 1 1 تبوك
1 1 1 1 1 نجران

1 1 1 1 1 جازان
1 1 1 1 1 الزلفي

Table 5.1: Renting Prices per Square-Meter in Industrial Cities

Source: Saudi Electric Company

3. Utilities O&M.

• Water:

▪ Unit Price:

The price of one m3 of water for industrial usage is 3.8 SR/m3, as shown in table

5.2.

▪ Water Consumption

It takes 3 tons of steam to generate one MWh of electricity with the steam

generator. That is 720-1000 gallons of make-up water is needed. However, 10

times this amount is required to cool down the plant.

Page 37 of 47

850 gallon/MWh * 600 MWh = 510,000 Gallons/ year

510,000 Gallons = 2040 m3

Total Annual price = 2040 m3 * 3.8 S.R. /m3 = 7,752 S.R.

Table 5.2: Charges per Cubic-Meter of different Water Services

Source: National Water Company

• Electricity Supply:

Total cost = 0 S.R.

• Communications (Internet and telephone):

An annual subscription of 9,000 S.R/year

• Material Cost:

▪ Food cost:

The restaurant will be invested with a

third party.

▪ Gas cost:

Negligible

4. Labor Cost:

• Workforce classes:

▪ Class A Employees:

This class includes the following:

– A number of one GM.

– A number of five managers.

– 1-General Practitioner.

Page 38 of 47

➢ Health Insurance:

They will have a class A insurance with an estimated cost of 2900 S.R./year.

(Total annual cost = 2900 * 7 = 20,300 S.R.)

➢ Basic salary:

We assumed a basic salary of 20,000 S.R. /month

(Total cost 20,000 * 12 * 7 =1,680,000 S.R).

➢ Pension Funds:

We will follow the regulation assuming 1/2-month salary for each service

year.

(Total cost of 0.5*7*20,000 = 70,000 S.R).

➢ Accommodation:

We will follow the regulations assuming 3 months’ salary as an

accommodation compensation.

(Total cost of = 3* 20,000 * 7 = 420,000 S.R)

➢ Vacation and tickets:

We will provide a 30 days vacation/ year as a paid vacation.

We will provide on average 3000 S.R as a ticket allowance/year (country

dependent).

(Total cost of = 3000 * 7 =21,000 S.R)

➢ Miscellaneous cost:

This will include any tools or uniforms related to this class of employees:

We calculated it to be SAR 550 for each employee.

(Total annual Cost = SAR 550 * 17 = SAR 9,350)

▪ Class B Employees:

This class includes the following:

– Three Scientist.

– Six Engineers.

– Three Supervisors.

– Two Accountants.

– One Nurse.

– One Receptionist.

– One Recruiters.

– One PR.

➢ Health Insurance:

They will have a class B insurance with an estimated cost of 2200 S.R. / year.

(Total annual cost = 2200 * 17 = 37,400 S.R.)

Page 39 of 47

➢ Basic salary:

We assumed a basic salary of 10,000 S.R. /month

(Total cost 10,000 * 12 * 17 =2,040,000 S.R)

➢ Pension Funds:
We will follow the regulation assuming 1/2-month salary for each service
year.

(Total cost of 0.5*17*10,000 = 85,000 S.R)

➢ Accommodation:
We will follow the regulations assuming 3 months’ salary as an
accommodation compensation.

(Total cost of = 3* 10,000 * 17 = 510,000 S.R)

➢ Vacation and tickets:
We will provide a 30 days vacation/ year as a paid vacation.
We will provide on average 3000 S.R as a ticket allowance/year (country
dependent).

(Total cost of = 3000 * 17 =51,000 S.R)

➢ Residency and Social Security Cost:

From the website of social security, we found out the SC costs 6% from the

salaries of Saudi employees and 2% from the Non-Saudi, paid to the

institution:

(Total cost of 2,040,000 * 6% = SAR 122,400)

We assumed 50% of our employees are Non-Saudis, so we calculated the

residency renewal cost:

(Total cost of 9,600 * 8 = SAR 76,800)

▪ Class C Employees:

This class includes the following:

– Twelve Labors.

– Eight security personnel.

– Two genitors.

– One Teaboy.

– One Operator for the crane.

– One Incineration Unit Operator.

– Forty-one truck drivers.

– One bus driver.

– One Secretary.

– Seven Assistant.

– Two Technicians.

– One Storekeeper.

Page 40 of 47

➢ Health Insurance:

They will have a class C insurance with an estimated cost of 1300 S.R./year.

Total annual cost = 1300 *69 = 89,700 S.R./year

➢ Basic salary:

We assumed a basic salary of 1,500 S.R. /month

Total cost (1,500 * 12 * 69 = 1,242,000 S.R/year)

➢ Pension Funds:
We will follow the regulation assuming 1/2-month salary for each service
year.

Total cost of (0.5*69*1500 = 51,750 S.R/year)

➢ Accommodation:
We will follow the regulations assuming 3 months’ salary as an
accommodation compensation.

(Total cost of = 3* 1,500 * 69 = 310,500 S.R/year)

➢ Vacation and tickets:
We will provide a 30 days vacation/ year as a paid vacation.
We will provide on average 3000 S.R as a ticket allowance/year (country
dependent).

(Total cost of = 3000 * 69 =207,000 S.R/year)

➢ Miscellaneous cost:
This will include any tools or uniforms related to this class of employees:
We calculated it to be SAR 550 for each employee.

Total annual Cost = SAR 550 * 69 = SAR 37,950

➢ Residency and Social Security Cost:
From the website of social security, we found out the SC costs 6% from the
salaries of Saudi employees and 2% from the Non-Saudi, paid to the
institution:

(Total cost of 1,242,000 * 6% = SAR 74,520)

We assumed 80% of our employees are Non-Saudis, so we calculated the

residency renewal cost

(Total cost of 9,600 * 56 = SAR 537,600)

Table 5.1 summarizes all anticipated annual costs and show the added contingency and the

total annual cost.

Page 41 of 47

Waste Trucks

Insurance 164,000

Maintenance and Repairs 1,899,325

Tires Replacement and Repairs 301,350

Fuel and lubrication 3,100,780

Workforce bus

Insurance 3,000

Maintenance and Repairs 14,200

Tires Replacement and Repairs 1600

Fuel and lubrication 19,032

Crane
Insurance 7,000

Maintenance and Repairs 70,000

Turbine Maintenance 2,700,000

Boiler Maintenance 780,000

Filtration unit
Maintenance 120,000

Replacement 60,000

Incineration Unit Maintenance 420,000

Land Rental 8,000

Utilities

Water 7,752

Electricity 0

Communications 9,000

Workforce Cost
Class A

Health Insurance 20,300

Basic salary 1,680,000

Pension Funds 70,000

Accommodation 420,000

Vacation and tickets 21,000

Workforce Cost
Class B

Health Insurance 37,400

Basic salary 2,040,000

Pension Funds 85,000

Accommodation 510,000

Vacation and tickets 51,000

Workforce Cost
Class C

Health Insurance 89,700

Basic salary 1,242,000

Pension Funds 51,750

Accommodation 310,500

Vacation and tickets 207,000

Total Annual Cost SAR 16,520,689

Contingency 5% SAR 826,034

Total Estimated Annual Cost SAR 17,346,723

Table 5.1: Summary of Estimated Annual Costs

Page 42 of 47

Revenues:

In this section, we will discuss and investigate the various sources of revenues.

• Electricity Revenues

The sale of electricity is one of the most important revenue sources for WTE facilities. The

following parts of this section show the estimated electricity generation and price for the

proposed facility in the Eastern Province.

• Estimating the Total Units

▪ 1 Ton of waste generates 700 KWh

▪ The facility shall handle 1 million ton of waste per year as was determined from the

supply and demand analysis.

▪ Therefore, the facility will generate 700 GWh of electricity per year.

▪ It is estimated that the plant will consume 15% of this electricity, which implies that the

net electricity generation of the facility 600 GWh per year will be exported to the grid.

• Cost of Unit

▪ The annual cost will only be used in calculating the cost per KWh in Saudi Riyal.

▪ Cost in SR/ KWh = SAR 17,346,723/ 600,000,000.0 KWh = 0.0289 SR/ KWh

= 3 Halalah/KWh

• Profit Margin

The table below shows the prices that the Saudi Electricity Company charges for one KWh

for the users in different sectors. Since that the minimum price that SEC charges 16

Halalah/KWh and assuming that the required payback period is within 5 to 8 years,

therefore, the unit price of KWh shall be 12 Halalah/KWh in which this price will satisfy

the followings:

1) Enabling the investors to return their money back within 5 to 8 years.

2) Enabling the Saudi Electricity Company to sell the electricity for its customers with a

minimum profit margin of % 34.

Table 5.2: Saudi Electricity Company charges for one KWh

Page 43 of 47

• Waste Disposal

Gate fee is the payment that the WTE plant collects per ton of waste received. This fee is
usually also collected by landfills. In the case of MSW, the fee is usually charged to citizens
similarly to other services (such as electricity and water) or in the form of taxes, or the
government subsidizes it. In the case of industrial waste, it is usually charged as the waste
is received. For example, the government pays for landfills agencies per ton of waste
buried. Instead, the government will pay the WTE facility at a lower price compared to the
amount of money paid to landfill. On average, the government is going to pay to WTE SR
15/ Ton of MSW instead of SR 25 for landfills.

Expected revenues= 1,000,000 Ton/year * SR 15/ Ton = SAR 15,000,000 annually.

• Rentals

The only revenues in this section are the revenue of investing in the restaurant area by a

third party.

Expected revenues = SR 25,000 annually

Sensitivity Analysis

The sensitivity analysis determines how different values of an independent variable affect a

particular dependent variable under a given set of assumptions. This technique is used within

specific boundaries that depend on one or more input variables, such as the effect that changes

in Salaries (independent variable) has on Present Worth (dependent variable).

• Cost factors Analysis:

For the cost factors we investigated the effect of change in Salaries, Vehicles O&M,

Equipment O&M, and Land & Utilities Cost, as we can see from the graph the biggest effect

on our present worth was coming from the change in salaries as it is extremely sensitive

factor , but even with a 20% increase in salaries our project would still make a positive

present worth but with a significant change in the payback period. We can also notice that

Vehicles O&M and Equipment O&M are fairly sensitive factors whereas Land & Utilities

Cost is an insensitive factor in our PW analysis.

Salaries Vehicles
O&M

Equipment
O&M

Land &
Utilities Cost

PW
(10%)

-20% 266,717,713 264,263,683 261,139,102 251,548,620

-10% 259,104,443 257,877,428 256,315,138 251,519,896

0% 251,491,173 251,491,173 251,491,173 251,491,173

10% 243,877,903 245,104,918 246,667,208 251,462,450

20% 236,264,633 238,718,663 241,843,244 251,433,726

Table 5.4: Sensitivity Analysis Results for Cost Factors

Page 44 of 47

Figure 5.1: Sensitivity Analysis Results for Cost Factor Graph

• Revenue Factors Analysis:

For the Revenue factors we investigated the effect of change in Electricity Salvage value

(unit price), Gate Fees and Rentals, as we can see from the graph the biggest effect on our

present worth was coming from the change in unit price of electricity salvage which was

expected since it is our main revenue source, it is extremely sensitive factor, but even with

a 20% decrease in unit price our project would still make a positive present worth but with

a significant change in the payback period. We can also notice that Gate fees are fairly

sensitive to insensitive factor because it shows a big change in the PW but not relatively big

compared to the other factor whereas Rentals is an insensitive factor in our PW analysis.

Table 5.4: Sensitivity Analysis Results for Revenues Factor

235,000,000

240,000,000

245,000,000

250,000,000

255,000,000

260,000,000

265,000,000

-20% -15% -10% -5% 0% 5% 10% 15% 20%

Cost Factors Sensitivity Analysis

Salaries Vihecles O&M Equipment O&M Land & Utilities Cost

Electricity
Salvage

Gate Fees Rentals

PW
(10%)

-20% 110,429,308 218,335,638 251,435,914

-10% 180,960,240 234,913,405 251,463,543

0% 251,491,173 251,491,173 251,491,173

10% 322,022,106 268,068,941 251,518,803

20% 392,553,038 284,646,708 251,546,432

Page 45 of 47

Figure 5.2: Sensitivity Analysis Results for Revenues Factor Graph

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

-20% -15% -10% -5% 0% 5% 10% 15% 20%

Revenue Factors Sensitivity Analysis

Electricity salvage Gate Fees Rentals

Page 46 of 47

References

[1] Electricity & Cogeneration Regulatory Authority

[2] Eastern Region Municipality

[3] National Water Company

[4] Saudi Authority for Industrial Cities and Technology Zones (MODON)

[5] Saudi Electricity Company

[6] Aga O., Ouda O. K. M. and Raza S. A. (2014). Investigating waste to energy potential in the

eastern region, Saudi Arabia. International Conference on Renewable Energies for Developing

Countries, Beirut, pp. 7-11.

[7] Byrne, J. P. (1999). Project management: how much is enough? PM Network, 13(2), 49–52.

[8] María Elena Rodríguez, “Cost-benefit analysis of a waste to energy plant for Montevideo; and

waste to energy in small islands” master’s thesis, Columbia University, 2011,

http://www.seas.columbia.edu/earth/wtert/sofos/Rodriguez_thesis

[9] Dr. Muhammad H. Al-Malack, Department of Civil and Environmental Engineering, KFUPM

[10] Eng. Musleh Al-Amri, Saudi Electricity Company

[11] Eng. Hussan Alshahid, Project manager, RAK Contracting

[12] Eng. Ismail Abusamha, MEP manager, RAK Contracting

[13] Eng. Ashraf Almasri, Civil engineer, RAK Contracting

[14] Eng. Anas Abdulhadi, Electrical engineer, RAK Contracting

http://www.seas.columbia.edu/earth/wtert/sofos/Rodriguez_thesis

Page 47 of 47

Appendix A

Letter from CEM Department Chairman asking Eastern Province Municipality for

Cooperation