Question 2 In-line with NDS1, in 2023, the Ministry of Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement plans to construct a dam along Manzanyama River 120 km from Bulawayo. The dam is expected to service communities from both Tsholotsho and Plumtree. The project is projected to commence in April 2023 and run for exactly eighteen months. A feasibility was carried out by a consultant in 2018 and cost the government US$120,000.00. No new equipment is expected to be acquired because the machinery that will be used is the one presently used at the Gwayi-Shangani dam. It is planned that this movement will take place two months before actual construction begins. A total of 900 (a project manager, finance manager, HR manager, procurement officer, an engineer at senior level, 5 foremen, 15 other managers at the middle of management with the rest being at shop floor level) are expected to be employed. The following information has been made available. i. On completion, the dam is expected to use 6,000 tonnes of quarry of which 58% will be consumed in the first calendar year. At the commencement of the project, a tonne will be at US$16.00. ii. The project is going to need 200 tonnes of steel that will be consumed at the same rate will quarry. The steel per tonne is 20 times the price of quarry. iii. According to the expected concrete mix, each tonne of quarry will take 2 tonnes of river sand and 10 bags of cement. It will be cheaper to buy cement ($6.00 per 50kg bag) in bulk form PPC in Bulawayo. iv. Movement of equipment will require 5,000 litres of diesel, land clearance 3,000 litres and 50,000 litres during construction in line with quarry. v. The price of diesel and petrol are estimated at US$1.70 and $1.68 respectively. vi. Senior manager are entitled to 200 litres of petrol while middle manager are to be given 100 litres per month. vii. Junior employees are to given $50.00 per month for rations. viii. Currently remuneration is $1,000.00 for senior managers, 700.00 for middle managers and other employees are at $300.00 per month. ix. Each employee is entitled to two sets of uniforms and one per of safety shoes at $35.00 and $15.00 respectively. x. $175,000 will be set aside for equipment repairs in the first year and double in the following year. xi. 25 villagers relocated are expected to be compensated at $5,000 each. 75% of the agreed amount will be paid in the first year and balance in the following year. xii. The commissioning of the dam will take place six months after completion. It is expected that it will be full y that time. The expected cost is $50,000.00. All the equipment used will then be taken to central stores in Bulawayo. 1,000 litres will be used for the exercise. xiii. All costs are expected to increase by 25% in the January 2024 when the government adjust salaries for the civil service.

Required Draw up yearly budgets up to the period when the dam is handed over to the community. (50 marks).