1.1 skill pi introduction
- 1. Course Title Project Analysis and Identification Course Code PMAE 521 Credit Hours 3 Classific ation Core Semeste r Year 1, Semester 1
- 2. OUTLINE CHAPTER 1. BASIC CONCEPTS (PROJECT, PROJECT CYCLE, PROJECT IDENTIFICATION AND PROJECT APPRAISAL) 1.1 PROJECT AND THE PROJECT CYCLE (PC) • DEFINING A PROJECT • FEATURES AND CHARACTERISTICS OF PROJECTS • TYPOLOGY OF PROJECTS • PROJECT CYCLE • TRADITIONAL (BLUEPRINT) APPROACH • WORKING DEFINITIONS FOR THE STAGES OF A PROJECT CYCLE – STAGE 1: PROJECT CONCEPTION – STAGE 2: PROJECT IDENTIFICATION – STAGE 3: PROJECT PREPARATION – STAGE 4: PROJECT APPRAISAL – STAGE 5: PROJECT SELECTION – STAGE 6: NEGOTIATION AND FINANCING – STAGE 7: PLANNING FOR IMPLEMENTATION – STAGE 8: IMPLEMENTATION – STAGE 9: MONITORING AND REPORTING – STAGE 10: EVALUATION • THE PROCESS (ADAPTIVE) APPROACH • THE MIXED APPROACH • PROJECT LIFE CYCLE FOR INVESTMENT PROJECTS 1.2 PROJECT IDENTIFICATION & ANALYSIS/APPRAISAL (CONCEPT) • PHASES OF PROJECT IDENTIFICATION • WHO IDENTIFIES PROJECTS? • SOURCES OF PROJECT IDEAS-FORMAL INFORMATION SOURCES BASIS FOR PROJECT IDENTIFICATION • TECHNIQUES FOR PROJECT IDENTIFICATION • SCREENING & RATING PROJECT PROPOSALS - PROJECT RATING INDEX • PROJECT APPRAISAL AND FUNDING DECISION: GENERIC CHECKLIST
- 3. 1.1 PROJECT AND THE PROJECT CYCLE (PC)
- 4. INTRODUCTION : PROJECT BASICS • A temporary endeavor undertaken to create a unique product, service or result. • Changing something from the way it is to the desired state • Projects can be • large or small and • take a short or long time to complete. • Defined start and end, specific scope, cost and duration – A project ends when • its objectives have been reached, or • the project has been terminated. • A series of activities aimed at bringing about – clearly specified objectives – within a defined time period and – with a defined budget • It is • performed by people • constrained by limited resources • planned, executed and controlled • Many related activities BUT Focus on the outcome • Regular teamwork focuses on the work process
- 6. SIX TYPOLOGIES OF PROJECTS SIX TYPOLOGY 1 2 3 4 5 6 MARKET- DRIVEN INDUSTRIAL PROJECTS NEW INVESTMEN T PROJECTS DIRECTLY PRODUCTIVE PROJECTS CAPITAL INTENSIVE PROJECTS DEMAND BASED 2. CRISIS- DRIVEN: MANUFACTU RING PROJECTS EXPANSION PROJECTS: INDIRECTLY PRODUCTIVE PROJECTS PEOPLE – BASED PROJECTS NEED BASED 3. CHANGE- DRIVEN: MANAGEME NT PROJECTS UPDATING PROJECTS MIXTURE OF THE TWO RESOURCE BASED RESEARCH PROJECTS
- 7. TYPES OF CHANGE AND PROJECTS Transactional change Transitional change Undergoing from one state to another, related state Transformational change Outcomes Simple and predictable Simple yet unpredictable or complex yet predictable Complex, and unpredictable Level of investment Low Higher Highest Change or modification in structure Little to no Some, incremental Potentially sweeping and radical Existing policy Little to no Some modifications Major change Individual skills and abilities needed to implement change Little to no Some modifications New way of thinking Role of stakeholders High Very high
- 8. 8 Change is: – A process not an event – Normal & constant, inevitable, & no organization can avoid it – Vital if an organization is to avoid stagnation to survive, grow & prosper – Part of our every day life both at home & at work – Untidy, entirely predictable & planned changes often needs adjustment in the light of experience & experimentation • Natural or evolutionary/ incremental, or • A radical shift from current to new process • Planed, i.e.. proactive, or • Unplanned, reaction to external demands • Directive, i.e. implemented by ‘top down’ management, or • Participative, i.e. involved those impacted by the change. CHARACTERISTICS & TYPES OF CHANGE
- 9. Transactional change Transitional change Undergoing from one state to another, related state Transformational change Outcomes Simple & predictable Simple yet unpredictable or complex yet predictable Complex, & unpredictable Level of investment Low Higher Highest Change or modification in structure Little to no Some, incremental Potentially sweeping & radical Existing policy Little to no Some modifications Major change Individual skills & abilities needed to implement change Little to no Some modifications New way of thinking Role of stakeholders High Very high 3. CHARACTERISTICS & TYPES OF CHANGE
- 10. TRANSACTIONAL’ CHANGE’ OR'‘ TRANSFORMATIONAL’ CHANGE?' • Transformatve'change'goes'beyond'knowledge,'capaci0es’
- 12. 12 GROUP DISCUSSION • Why do you think that leaders fail to manage change? • What factors have triggered you to make the changes? (Discuss the internal & external factors) • Why do you think people resist change? • What mechanisms has to be used or what measures have to be taken to overcome the resistance?
- 13. External Assitance & Contributions Project Project Project Project Sub Programmes Program Support Policies, Strategies Activities Investments National Programme (Government Ownership and Accountability) Government Development Strategy National Development Goal (s) Existing Conditions and Problems RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 14. • National policy: set overall policy objective e.g. National Development policy • Sectoral policy: Policies for the various sectors of the economy. • Sectoral strategy: Approaches that should be undertaken to achieve the stated policies of the government. • Sub-sectoral strategy: When the sector is large & diverse it is necessary to develop sub-sector strategies. • Programs-can be relatively large & diverse, longer term E.g. National level programs, crop prodn, livestock program, nutrition. A program may cover a whole sector( e.g. health sector program) or focus on one part of the health sector( e.g. primary health care program) or be a package of projects with a common focus/theme; or it may define what is essentially just a large project with a number of different components. RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 15. • Devt. Policy – is converted into reality through projects – take place within a complex envt of multiple actors, policies, programs, & projects. • All countries have national plans • National plans spell a range of economic & social objs & strategies meant to enhance devt. • Development plans & projects are closely interlinked. • Sound development plans require good project just as • Good projects require sound planning. RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 16. Programs • are planned continuous or ongoing devt investment activities that are not generally time-bound. • may consist of a no. of projects with distinctly specified time & resources Plan is a more or less operationalized versions of general programs. • Can be long medium & short term plans with specific & quantitative targets. • Medium term development plans are the main sources of project ideas. • Plans can also be categorized as indicative, regulatory, indirect & central/direct. • Indicative, regulatory & indirect planning may imply greater decentralization of decision making over investment decisions. • These have significant role for project identification & preparation. RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 17. Projects • are usually the smallest unit of development programs & plans. • are derived from the prevailing development policies. • are fundamental components of the devt efforts of increasing provision of goods • e.g. public sector programs. • are normally included in the public investment planning process wherever they make a claim on the government budget. • E.g. where part or all of a public sector project is funded for government revenue where either public or private sector makes use of government loan-guarantees. • Projects that do not make a claim on budgetary resources may not be included in the public investment planning process. RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 18. • Projects can be shorter term, more location specific, more easily bounded & managed. • Therefore Project can be defined as • A project is a complex set of activities where resources are used in expectation of returns & which lends it to planning financing & implementing as a unit. A project usually has a specific starting point & a specific ending point, intending to accomplish specific objectives. RELATION B/N POLICY, SECTOR STRATEGY, PROGRAMS & PROJECTS
- 19. Questions
- 20. PROJECT CYCLE Upon completion, you will be able to … • List the purpose and types of project life cycle models • Distinguish between project and product life cycle
- 21. KEY CONCEPTS • Project phase: “A collection of logically related project activities usually culminating/end ing in the completion of a major deliverable.” • Project life cycle: “Collectively the project phases are known as the project life cycle.” • Product life cycle: • The natural grouping of ideas, decisions, and actions into product phases, from product conception to operations to product phase- out.
- 22. ORIGIN OF THE CONCEPT OF PC • devt projects as the time bounded creation of physical assets ↓ recognition of phases within the project process ↓ concept of the project cycle. WHAT IS A PROJECT CYCLE ? • a sequence of events which a project follows. • Follows the life of a project from the initial idea through to its completion • Provides a structure to ensure that stakeholders are consulted • Defines key decisions, information requirements and responsibilities at each phase PC in practice • this division is less distinct • elements of one activity spilling over into one or more of the others. So • Comprehensive project planning should be an iterative process Meaning • Results in 1stage of z project influence decisions in z other stages PROJECT CYCLE(PC)
- 23. • Aka …the Blueprint approach. Why? • uses the imaginary of blue prints of engineering drawings • Projects need to be systematically & carefully planned in advance & implemented strictly according to the defined plan. Generally, useful approach to Investment In Capital Intensive Projects. SUMMARY OF THE STAGES IN PC STAGE 1: PROJECT CONCEPTION STAGE 2: PROJECT IDENTIFICATION STAGE 3: PROJECT PREPARATION STAGE 4: PROJECT APPRAISAL STAGE 5: PROJECT SELECTION STAGE 6: NEGOTIATION & FINANCING STAGE 7: PLANNING FOR IMPLEMENTATION STAGE 8: IMPLEMENTATION STAGE 9: MONITORING & REPORTING: STAGE 10: EVALUATION: TRADITIONAL (BLUEPRINT) APPROACH: Identification Potential projects suggestions emerge from specialists, local leaders & national devt strategies. Identification of potential SHs, particularly 1 SHs. Carry out pb assessment & decide upon key objectives. Assess alternative strategies for meeting objective Preparation and analysis The technical, institutional, economic, environmental, & financial issues facing the project studied & addressed including whether there are alternative methods for achieving the same objs. Assessing feasibility as to whether & determining whether to carry out more advanced planning. Project plan developed which can be appraised Appraisal Critical review or independent appraisal of project plan Implementatio n and Monitoring The project plan is implemented over a specified time period. Monitoring of project performance with a management information system to enable correction of implementation problems as they arise. Evaluation On-going and final assessment of the success of the project against original objectives, to learn lessons to help improve future projects
- 24. Programming Implementation Formulation Evaluation Identification Financing decision Financin g decision EXAMPLE OF THE PROJECT CYCLE
- 25. The EU Project cycle
- 26. The WORLD BANK Project cycle
- 27. The UNDP Project cycle
- 28. Project Cycle Identification Phase 1 Review and approval Phase 3 Preparation and formulation Phase 2 Evaluation Phase 5 Implementation Phase 4 The UNEP Project cycle
- 29. THE PROCESS (ADAPTIVE) APPROACH • Based on new ideas & experience gained from practical application of traditional approach, process approach of the WB was developed in 1994. The process approach model • reflects more of a process as opposed to a traditional (blueprint) • is of particular relevance for which beneficiary participation is imp • has the following successive stages »Experimentation: »Piloting »Demonstrating »Mainstreaming
- 30. • Active participation is likely to have many benefits, although it is not a guarantee of project success • Achieving full participation is not easy. • It can also take a lot of time, and conflicting interests are likely to come to the surface Coercion Co-operation/ Partnership Control, collective action or Co-learning Informing Consultation Decided by ourselves Decided by others Levels of participation Being manipulated; No real power Being informed, others set the agenda Being consulted, Others analyze and Decide course action Work with others Little input by others
- 31. THE PROCESS (ADAPTIVE) APPROACH 1. Experimentation: devt problems or objectives are defined & possible solutions, methods of analysis & implementation r identified These are then subject to pilot trials for their appropriateness, adaptability, acceptability, transferability to local conditions. Making the project idea/concept originates from local communities & other beneficiaries as well as on the needs & priorities of zcommunity. 2. Piloting : is starting small scale projects with trials of different techniques in a holistic approach to incorporating social, cultural, physical, intuitional, & ecological actors.
- 32. THE PROCESS (ADAPTIVE) APPROACH 3. Demonstrating: is conducting trials on representative scale village, kebele with established mechanism through joint participation. 4. Mainstreaming: is process of extending the project to a large scale woreda, district region based on the results of demonstration. As particular methods are found to be successful on an experimental scale, they are taken successively through wider & more comprehensive coverage in order to reach a larger public, each stage growing out of the results & methods of the previous one
- 33. THE PROCESS (ADAPTIVE) APPROACH Intrinsic to this approach is the idea that while a general objective & direction for project intervention can be defined, • specific actions & services may change as a result of review & evaluation of individual phases. • This is sometimes called a process approach, • to highlight a flexible two way interaction b/n project agents & consumer or beneficiaries for whom the project is intended. • It might result, for instance, in redesign of systems of delivering primary health care or relocation of health centers, following earlier design & experimentation.
- 34. THE PROCESS (ADAPTIVE) APPROACH • It does not change the basic concept of a project as a time bounded investment • must still be prepared & implemented (perhaps with successive stages of experimentation & modification if process approach is followed) & • It has found a more ready application in the rural & social sectors than the industrial & infrastructural sectors, partly • Because rural & social development is intimately affected by the reaction of people, as project agents & beneficiaries) & therefore less easy to plan & define in advance. • By contrast the blueprint approach remains important for capital intensive projects where there is paramount need to plan & account carefully for expenditure incurred in the public sector.
- 35. THE MIXED APPROACH • A more recent devt has been to combine elements of both approaches, – breaking the project idea down into discrete & distinctive stages – defining a clear set of objectives for each stage, & – allowing changes in approach & techniques between stages. • We need to keep in mind the necessity of managing & implementing the project as planned, while at the same time retaining as much flexibility as possible in order to make changes to the overall design where necessary. • The point is whether the blueprint or process approach is followed, is to see beyond the project & to ensure that the efforts lead to the creation of lasting & beneficial assets.
- 36. PROJECT LIFE CYCLE FOR INVESTMENT PROJECTS
- 37. PROJECT LIFE CYCLE FLOW Know Problem Space Partial Answer Partial Answer Solution Space Don’t Know Don’t Know Know HOW WHAT Project Definition Execution
- 38. PROJECT LIFE CYCLES AND THEIR EFFECTS Conceptualization Planning Execution Termination Uncertainty Client Interest Project Stake Creativity Resources
- 39. PROJECT LIFE CYCLE Time Start Finish Cost and Staffing level Initial Phase Intermediate Phases (one or more) Final Phase Milestones : • defined state of the project • decision point
- 40. Questions
- 42. 1.PROJECT IDENTIFICATION & SCREENING Mortality of new ideas • How is a project identified & undertaken for subsequent implementation? • Project identification starts with objectives, SWOT analysis & project idea generation • Project appraisal: involves evaluation of projects whether they are worthwhile in terms of their financial capabilities & other aspects • Project selection: involves picking one project or a set of projects based on criteria set
- 43. 1.1.1 PROJECT IDENTIFICATION: MEANING, PHASES & APPROACHES • Project Identification would include, for example: • Analysis of existing situation • Problems/needs identification • Problem analysis • Prioritization of issues • Decision on whether a project is appropriate • Definition of the project idea • Consultation with stakeholders • Establishment of overall objectives
- 44. 1.1.2. PHASES OF PROJECT IDENTIFICATION • Actual project identification • Description of project idea • Screening • Prioritization
- 45. 1.1.3.WHO IDENTIFIES PROJECTS? • Producer organisations • Individual producers • Marketing organisations • Private companies - Local - Foreign • State enterprises/organisations • Government ministries • Development banks • Other aid agencies (NGOs, bilateral funds) • Local government • Politicians/pressure groups
- 46. 4. ANALYSIS OF EXISTING SITUATION Information needs:- To the project area 1. Social & political aspects Attitudes & Beliefs Political roles Community organizations Gender relations Migration Previous involvement in development activities Summary of potential constraints 2. Economic Aspects Economic Activities Access to land, market, skills 3. Sectoral information Health aspects Education & training Agriculture Environment
- 47. 1.1.4 . FORMAL INFORMATION SOURCES FOR PROJECT IDEAS • Policy reviews & devt plans made by central govt ministries • Sectoral surveys by technical ministries. • Survey conducted by local govt & regional organization. • Formal problem diagnosis & analysis exercises. • Environmental & natural resource surveys • Reviews & evaluations of past projects. • Community meetings & public gatherings. • Participatory rural appraisal(PRA) &Participatory devt programs. • Private sector, Co-operatives & Parastatal corporate plans. • Investment identification missions by dev’t & aid donors
- 48. 1.1.4. SOURCES OF PROJECT IDEAS Systematic Sources • Central government policy reviews/plans • Sectoral strategies & sub- sectoral programmes (sectoral ministries) • Regional studies (regional & local government • Reviews of past projects • Corporate plans (private sector, state enterprises, co-operatives) • Bank/aid donor identification missions Unsystematic Sources • Political expediency & opportunism • Local pressure • Bright ideas! • Unsystematic does not always mean worse - just less predictable
- 49. 1.1.5 BASIS FOR PROJECT IDENTIFICATION 1. Demand Based – Local consumer demand - quantity? – Export opportunities • Price • Quality • trade barriers – Inputs for further processing • capacity of processing industry? 2. Resource Based – Land suitability – Existing raw material production – Availability of labour & skills – Existing fixed assets – Agro-industries may have demand for raw materials & resource base (local production) - problem of matching capacity with raw material supply – Natural resource base important for energy, mineral exploitation & development of tourism 3.Need Based – Basic health & education – Social security – Domestic water supply? – Approach for estimating need may be similar to projection of demand but need does not presuppose ability to pay
- 50. TECHNIQUES FOR PROJECT IDENTIFICATION(ANALYTICAL DIMENSIONS) Four main elements when analyzing a development problem. Stakeholder Analysis, including preliminary institutional capacity assessment, gender analysis & needs of vulnerable groups Problem Analysis (Profile of the main problems including cause & effect r/ships Analysing of Objectives (image of an improved situation in the future) Analysis of Strategies (comparison of different options to address a given situation.
- 51. Questions
- 52. APPROACHES TO IDENTIFY INVESTMENT PROJECTS
- 53. 1. OUTLINE(CONTENT) • Prefeasibility study( Objs, Purpose, Content) • Feasibility study( Need, Types, Outline) • Facets of project analysis – Market & demand analysis ( components, objs, steps) – Technical analysis components, objs, steps – Organizational analysis – Financial analysis – Economic analysis – Environmental analysis • These jointly determine feasibility or viability of a given project though they are treated differently. • Correlation of each element is important.
- 54. 2. PROJECT PREPARATION AND ANALYSIS • The project idea must be elaborated in a more detailed study. • A definite decision to be made on the project by FS. • But feasibility study is costly and time consuming task. • Therefore, before assigning larger funds for such a study, further assessment of the project idea might be done in a Prefeasibility study.
- 55. PRE-FEASIBILITY FEASIBILITY Undertake detailed analysis of the development situation and constraints • Confirm the development situation and develop the rationale for undertaking the project Refine the project idea and make a preliminary assessment of the viability of alternative approaches To examine the viability of the options in detail and recommend a preferred option Define achievable outcome for the project or to define possible design options or concepts that may merit further investigation Confirm & refine the achievable outcomes Develop the design to the point where it is costed and can be tendered and implemented Make a preliminary identification of risk areas and assess the importance of these risks Develop a full risk analysis which can be used by implementers Develop performance indicators as an integral part of the design Develop TOR for a feasibility study if this is deemed appropriate Define further data collection and analysis requirements and possible data sources for feasibility or design stage. Develop scope of services, specifications… against which the project can be implemented
- 56. FEASIBILITY STUDY • The core of the proposal preparation process • To provide the basis for choosing the most desirable options • Consideration of the following basic questions: – Does it conform to the development and environmental priorities, such as PRSP?MDG?SDG?GTP? – Is it technically and scientifically sound, and is the methodology the best among the available alternatives? – Is it administratively manageable? – Is it financially justifiable and feasible? – Is it compatible with the culture of the beneficiaries? – Is it likely to be sustained beyond the intervention period?
- 57. PROJECT DOCUMENT FORMULATION • The concept proposal/PREFESABILITY is modified, transformed and expanded into a project document throughout the project formulation phase • The project document is a summary of the situation assessment, justification of methodology and strategies for achieving the targeted changes. Since project formulation is an iterative process, it is important to consult again with selected partners and colleagues as the document is formulated. • Add logical framework matrix, details on budget, implementation plan and modalities to the existing concept proposal • Project and project document formulation are simultaneous and iterative processes • The project document come from each step taken through project cycle phases 1 and 2
- 58. NEED FOR FEASIBILITY STUDY • Feasibility studies help organizations/ entrepreneurs to make investment decision • Needed by agencies and organization to assess viability of project for giving assistance • Investment decisions arrived through feasibility studies reduce the mortality of infant small industry • Broad industrial programs for the areas are converted into viable project through feasibility studies
- 59. WHO MAKES FEASIBILITY STUDIES • Development organizations • Consultants • Entrepreneurs/public enterprises • Entrepreneurs aided and assisted by experts • Development organizations and consultants working with the entrepreneurs in the preparation
- 60. TYPES OF FEASIBILITY STUDIES • Tailor-made studies to suit a particular entrepreneur/enterprise • Study made for a particular area for attracting prospective entrepreneurs
- 61. APPROACHES TO IDENTIFY INVESTMENT PROJECTS 1. Sectoral approach- • Identification (analysis) of the overall Investment potential in DC & • the general interest of developed countries in investing in DC • Compilation of area on specific sector • Assess current economic situation of DC ( study of structural pbs) 2. Enterprise ( microeconomic) approach • Identification of specific investment requirements of individual project promoters in both DC & developed countries. • Review of ideas by promoters, promotion offices, and financial institutions in DC and developed countries
- 62. .1 Opportunity study- is a study made to identify investment opportunities or identify project ideas Basis for opportunity Studies • Natural resources • Existing agricultural Pattern • Future demand for certain consumer goods • Imports • Export possibilities • Manufacturing sector successful in other countries • Possible inter-linkage • Possible extensions of exiting lines of manufacture • Policies(industrial….)
- 63. TYPES OF PROJECT OPPORTUNITY STUDIES General opportunity studies Specific opportunity studies 1 General opportunity studies GOS • Made to pin – pointing out specific investment proposals • Implemented through state & institutional agencies Three categories • Area studies • Sub-sectoral studies • Resource based studies
- 64. GOS A. Area studies: seeks to identify opportunities in a given area such as zone or region. Outline Basic features of the area (area size & physical features) Population, occupational pattern, per capita income & socio-economic backwards Leading exports and imports Basic exploited & potential exploitable production factors Infrastructure facilities Estimation of present demand & Identification of opportunity for development Identification of project objective & suitable strategies Estimated capital cost (lump sum) Major input requirements Further project requirement
- 65. GOS B. Sub sectoral studies/industry studies • seeks to identify opportunities in a delimited sub-sector/industry such as building material or food processing C. Resource based studies • designed to reveal opportunities based on the utilization of natural, agricultural or industrial products such as forest based industries….
- 66. 2. SPECIFIC OPPORTUNITY STUDY • More common than general opportunity study • The transformation of a project idea into a broad proposition • Often undertaken by the prospective investor or an entrepreneurial group • The objective is to stimulate investor response
- 67. 2 SUPPORT (FUNCTIONAL) STUDIES • cover specific aspects of an investment project • are required as prerequisites for or in support of pre-feasibility & feasibility studies, particularly for large-scale investment proposals. • Examples of such studies are – Market studies, – Raw materials and factory supply studies, – Laboratory and pilot plant tests, – Location studies, – Environmental impact assessment, – Economies of scale studies, – Equipment selection studies, etc • The contents vary depending on type and the nature of the projects. • Conclusions should be clear enough to give direction to the subsequent stage of project preparation.
- 68. • When a basic input may be a decisive factor in determining the viability of a project, then a support study is carried out before commissioning a pre-feasibility or a feasibility study. • A support study is undertaken after completion of a feasibility study when it is discovered in the course of the study that it would be safer to identify a particular aspect of the project in much greater detail although the preliminary evaluation as part of the decision making process may commence earlier.
- 69. GENERAL OUTLINE OF A FEASIBILITY STUDY 1. Summary 2. Project background and history 3. Market analysis and marketing concept 4. Raw materials and supplies 5. Location, site and Environment 6. Engineering and Technology 7. Human resources 8. Project Implementation schedule 9. Financial analysis and investment Appraisal – Total investment costs – Total costs of products sold – Project financing – Investment appraisal national economic evaluation – Aspects of uncertainty 10. Conclusion
- 70. Introduction to Chapter 2 : FACETS OF PROJECT ANALYSIS • Project analysis refers to analyzing a project from various perspectives so as to determine its viability & sustainability. • There are six major dimensions to project preparation & analysis. • These jointly determine feasibility or viability of a given project though they are treated differently. • Correlation of each element is important. • Project analysis consists of : – Technical Analysis – Organizational /institutional analysis – Market/demand analysis – Financial analysis/Discounted & undiscounted measures – Environmental analysis Advanced – Economic (Social cost benefit) analysis – Risk Analysis – Sustainability Analysis – Cost Effectiveness Analysis (CEA