1. THE COSTING OF EDUCATIONAL
PROJECTS
A case study of a Science College
By
Nasir Ahmad

2. Slide 2
Description of the project
 SITE :- Islamabad (Ten Acers provided by CDA)
Programme offers :- Four years (IX – XII)
Two sections in each class (8 sections)
Enrollment:- 40 students/section (Total students 320)
Design:-
Principal office 1
Typist office 1
Clerical office 1
Staff room 1
Library 1
Hall 1
W.C Blocks 2
Classrooms 6
Laboratories 2
Laboratory Stores 2

3. Slide 3
Construction Cost
Total Construction Cost :- 1,749,000
ITEM Size/sq.
ft
Cost per
sq.ft/ Rs.
Cost per
unit/ Rs.
No.
Units
Total
cost/Rs.
Principal’s of. 180 150 27,000 1 27,000
Typist office 100 140 14,000 1 14,000
Clerical office 300 150 45,000 1 45,000
Staff room 600 150 90,000 1 90,000
Library 1100 175 192,500 1 192,500
Hall 1500 175 262,500 1 262,500
W.C Blocks 250 190 47,500 2 95,000
Classrooms 500 150 75,000 6 450,000
Laboratories 2 272,000
Lab Stories 2 38,000
Circulation 900 150 135 135,000

4. Slide 4
Cost of Furniture and equipment
ITEM Furniture/Equipment Total cost/Rs.
Principal’s offfice Furniture 7,000
Typist office Furniture 3,000
Staff room Furniture 6,000
Library Furniture/Books 50,000
Hall Furniture 50,000
Textbooks 12,00*8 96,000
Stationary 15,000
Classrooms Furniture 72,000
Laboratories Furniture/Gas
installation/Equipme
nt
265,000

5. Slide 5
Phasing the Cost
• Capital Cost 1 site development
2 Construction of School building
3 Furniture and equipment
• Phasing of construction Cost/ Rs.000
Item Y0 Y1 Y2 Total
Site 130.0 130.0
Building 78.2 963 577.8 1619.0
Total 208.2 963.0 577.8 1749.0

6. Slide 6
Phasing the Cost (Continue)
• Phasing of Furniture and Equipment cost/000
Item Y0 Y1 Y2 Total
Heavy - 105.0 - 105.0
Light - - - 399.0
Total - 105.0 - 504.0

7. Slide 7
Recurring Cost
• Recurring Cost (Salaries, maintenance and repair, rent etc)
• Teacher cost/ooo (Pay scale 36000-2000-48000)
Year Principal salary Teachers salary Total
3 1 40+12 8 288 348
4 12 508 508
5 532
6 556
7 580
8 604
9 628
10 636
11-22

8. Slide 8
Other recurring cost
Year Rent Ancillary staff Maintenance Fixed Grant Total
0 30 30
1 30 30
2 30 30
3 30 111.5 40 181.5
4 30 84. 40 181.5
5 30 88 40 185.5
6 30 88 40 185.5
7 30 92 50 40 139.5
8 30 92 50 40 239.5
9 30 96 50 40 243.5
10 30 96 50 40 234.5
11-22 100 50 40 247.5

9. Slide 9
Appraising the Project
The project will be appraised in two stages
• Annual Statement of benefit and cost
• Calculation of the NPV (Net Present value and IRR (Internal Rate
of Return)
 Annual Statement of benefit and cost
i. Life of project (20 years i.e. from Y3- Y22)
ii. Enrollment (From Y3)
one class will be added each year
Full capacity in Y6
iii Fee per 4000 annum per student

10. Slide 10
Annual Statement of benefit and cost
year cost year cost
0 282.3 12 396.5
1 1098 13 396.5
2 1006.8 14 396.5
3 209.5 15 396.5
4 49.5 16 396.5
5 242.5 17 396.5
6 538.5 18 396.5
7 460.5 19 396.5
8 436.5 20 396.5
9 275.5 21 396.5
10 400.5 22 2542.5
11 396.5

11. Slide 11
Calculation of NPV and IRR
NPV at 10 percent= (Bt-Ct)
(1+r)t
= 188.1
NPV at 14 percent = -530.6
IRR= ri + ru NPVi
NPV-NPVu
= 11.05
Conclusion:- we safely conclude that IRR is positive and all cost will be
recovered during the period of 20 years, with compound interest rate
of 11.05 percent .Thus the project is beneficial, hence it is acceptable

12. Slide 12
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