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Technical analysis
Market and demand analysis
Financial analysis
Socio-economic analysis
Institutional analysis
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Project life cycle
Identification
Preparation
Evaluation
Implementation Appraisal/
financing
Different terms can be used to describe the various stages of the project cycle.
Identification
It is to find potential project ideas
That appear to represent a high priority use of
the countrys resources to achieve an important
development objective.
Such project ideas should assure that technical
and institutional solutions at costs
commensurate with the expected benefits-will be
found and suitable policies adopted.
Reasons for Identification
1. Macro-level Sources
2. Micro-level Sources
Macro-level Sources
Events such as
drought,
flood Natural
calamities/disasters.
Micro-level Sources of Project Ideas
Identification of unsatisfied demand
Can be of macro-level magnitude
Examples
Cement
Sugar
Telecommunication
Energy
Existence of unused/underutilized natural or human
resources.
Water potential of Ethiopia
Labor intensive
Iron ore 11
Response to govt incentives
Example
Charge in mortgage interest rate triggers construction of houses
demand for construction materials.
Micro and small enterprises development
Investment
It includes
1. Pre feasibility study
2. Feasibility study
Pre-Feasibility Study
Raw materials
Processed Components
Utilities
Raw materials
Agricultural products
Livestock and forests products
Marine products
Mineral products
Processed Components
Base metals,
Semi-processed materials,
Manufactured parts,
Components, and
Sub-assemblies
Utilities
Power,
Water,
Steam,
Fuel and etc
Production process/technology
For manufacturing a product/service often two or
more alternative technologies are available. For
example:
Steel can be made either by the Bessemer process or
the open hearth process.
Cement can be made either be the dry process or the
wet process.
Soda can be made by the electrolysis method or the
chemical method.
Paper, using bagasse as the raw material, can be
manufactured by the karft process or the soda
process or the simon cusi process.
Production process/technology analysis
includes:
1. Choice of Technology
2. Acquiring Technology
3. Appropriateness of Technology
Choice of Technology
Cost of construction
Market
Raw Material
Transport
Energy
Selection of a Specific Site
Community Attitude
Transport
Water
Communication
Wind Direction
Condition of the Site
Future Development
Complementary Plants
Territory Selection of Site
Selection and Community
Location Factor
1.Market *
2.Raw Materials *
3.Transportation * *
4.Power * *
5.Climate and Fuel *
6.Labor and Wages * *
7.Laws and Taxation * *
8.Comm.ty Services and Attitude *
9. Water and Waste *
Electrical equipments,
Instruments,
Transport Layout
Communication Layout
Organizational Layout
Plant Layout
Work Schedule
Demand analysis
Supply analysis
Marketing strategy
General method
Given the importance of market and demand
appraisal, it should be carried out in an orderly
and systematic manner . The key steps in such
appraisal are as follows:
Situational analysis and specification of objective
Demand forecasting
Market planning
The general list of major dimension of the
demand and market analysis should cover the
following aspects:
General Characteristics of the Economy:
Economic potential
Production structure
Foreign trade
Economic policy
Product
Characteristic features
Substitutes and complementary goods
Demand
Supply potential
Local production
Imports and exports
Competitors position
Marketing environment
Employment effect
Net foreign exchange effect
Impact of the project on net social benefits or
welfare
Environmental impact
Employment effect
1. Managerial analysis
2. Organization
3. Manpower
Managerial analysis
A project management should be evaluated to
measure the ability of management to plan,
direct, coordinate, motivate, control ad
implement the over all activity of the project
Management analysis include:
knowledge of the business and experience, financial management,
technical management,
personnel management,
Geothermal energy
Wind energy
Solar energy
Hydropower
Feasibility study for wind energy
Topographical Survey
Project Hydrology
Grid Connection
Discussion Topics