Project Feasibility and Appraisal

Course Overview

A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.

A well-designed feasibility study should provide a historical background of the business or project, a description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.

A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions. It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based.

Course Objectives

To familiarize the participants with the

  • Basic methodology of preparing feasibility studies.
  • Steps involved in developing feasibility studies
  • Components of feasibility study
  • Appraisal process
  • Appraisal tools and techniques

Course Content

Part One.

Pre-Investment Studies and the Investment Project Cycle

A. Investment project cycle and types of pre-investment studies

B. Basic aspects of pre-investment studies

C. Role of institutions, consultancy services and information systems

Part Two.

The Feasibility Study

I. Summary

II. Project background and basic idea

III. Market analysis and marketing concept

A. Marketing

B. Marketing research

C. Outline of the project strategy

D. Outline of the marketing concept

E. Marketing costs and revenues

IV. Raw materials and supplies

A. Classification of raw materials and supplies

B. Specification of requirements

C. Availability and supply

D. Supply marketing and supply program

E. Costs of raw materials and supplies

V. Location, site and environment

A. Location analysis

B. The natural environment

C. Environmental impact assessment

D. Socio-economic policies

E. Infrastructural conditions

F. Final choice of location

G. Site selection

H. Cost estimates

VI. Engineering and technology

A. Production program and plant capacity

B. Technology choice

C. Technology acquisition and transfer

D. Detailed plant layout and basic engineering

E. Selection of machinery and equipment

F. Civil engineering works

G. Maintenance and replacement requirements

H. Estimates of overall investment costs

VII. Organization and overhead costs

A. Plant organization and management

B. Organizational design

C. Overhead costs

VIII. Human resources

A. Categories and functions

B. Socio-economic and cultural environment

C. Project-related requirements

D. Availability and recruitment

E. Training plan

F. Cost estimates

IX. Implementation planning and budgeting

A. Objectives of implementation planning

B. Stages of project implementation

C. Implementation scheduling

D. Projecting the implementation budget

X. Financial analysis and investment appraisal

A. Scope and objectives of financial analysis

B. Principal aspects of financial analysis and concept of investment appraisal

C. Analysis of cost estimates

D. Basic accounting statements

E. Methods of investment appraisal

F. Project financing

G. Financial and efficiency ratios

H. Financial evaluation under conditions of uncertainty

I. Economic evaluation

Course Methodology

The training is going to be highly interactive combination of lectures, group discussions, questionnaires, individual reflections, role plays, simulations and videos.

Target Audience

The individuals who are involved in the development of project feasibilities, and its appraisals.

Duration

4 days (08:30–14:30) with appropriate breaks for tea/refreshments and lunch.

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