My First Memo Report

So this is the example of my first memo report and yes, I didn't get a good grade. I got 5.8 for my first memo report.

MEMO REPORT

To      :     Managing Director of Laumann Construction    

From     :     Head of Communications working committee

Date     :     5 October 2011

Subject     :     Action plan for constructing passenger terminal at Konopnicka Airpot

Introduction

On 5 October 2011,  the communication working committee negotiate on constructing new passenger terminal at Konopnicka Airport. There are some changes regarding its funding and financing. We have agreed on the following plan of action to fit Polish Airport and Ministry of Infrastructure’s intention.

Financing

Firstly, we agreed to take full responsibility for building new facilities, with a total of 85% borrowed from Weber-Merkel Bank at interest rate of 3,5%. The remaining 15% to be financed by Polish Airport Agency.

Operation and Management

Secondly, we advised to manage airport service for 10 years. Therefore, we would engage in joint ventures with an equity of 55% decision profit for Polish Airport Agency, while the 55% net profit will be given to us. Fees and other expenses excluded.

Repayment Terms

We propose loan to be repaid by Polish Airport Agency in 20 years. ??

Building Schedule

The construction will take 30 months, hence, we advise to cooperate with Polish construction companies with a proven track record to carry out this project.

Risk Allocation

Finally, since we are taking over full responsibilities including weather circumstances, delays in building program incur penalty fines of a maximum 5M . Risk associated with low air traffic volumes are shared on 50 – 50 basis between Polish government and private contractor.

Conclusion and Recommendations

The communication committee realizes that implementing these recommendations will probably be costly and involve a joint venture. However, after thorough research and negotiation, we firmly believe that these finance and funding separation are core to achieve mutual benefit and achieve communal collaboration in order to build passenger terminal at Konopnicka Airport. Furthermore, we believe that it is an essential development for Konopnicka Airport to be highly internationally recognized.

We look forward to your reaction and we hope to have the opportunity to present these recommendations.

Diniari Fajar Putri

Head of Communications Working Committee

(302 words)