Objectives of
Development Strategy
Human Development
Education
Basic Civic Amenities
Drinking Water & Sanitation
Health
GDP Growth
Portfolio Strategy
Why Appraisal?
Appraisal
Market Analysis
Technical Analysis
Financial Analysis
Economic Analysis
Ecological/Environmental Analysis
Appraisal
Appraisal
In order of benefits/returns
In order of social/economic benefits
Fixed Outlay vs. Operating Costs
In order of time flow of benefits
Market Analysis
Market Analysis
Technical Analysis
Financial Analysis
Economic Analysis
Ecological Analysis
Environmental Impact Assessment
What is the likely damage caused by
the project to the environment?
What is the cost of restoration
measures required to ensure that the
damage to the environment is
contained within acceptable limits?
Project Objectives
Project Appraisal
Project Appraisal
Project Parameters
Project Parameters
Location
Project Implementation
Project Parameters
Project Features
Land
Buildings
Technical specifications
Probable suppliers
Imported vs. indigenous
Method of acquisition (Competitive bidding
or turnkey)
Consultants or contractors
Raw Materials
Detailed specifications and quantity required
Is it in short supply
Probable suppliers
Utilities
Power required and availability / sources
Location of sub-station & its distance from site
Internal generation
Utilities (cont.)
Effluent
Housing
Schedule of Implementation
Project Cost
Land
Buildings
Project
Utilities
Housing and Social Infrastructure
Main Plant
Utilities
Financing
Sources of Finance
Own funds
Loans and Grants (Indian & Foreign)
Foreign Exchange needed
Security and Repayment Terms
Interest cost
Amortization details
Collateral and Guarantees
Buildup of output
Selling price assumed
Beak even point
Operating Costs, returns and profitability
Cash flow and repayments
Non-market Benefits
Evaluation
Economic returns
Social returns
Time flow of returns
Externalities
Evaluation
Environment
Feedback Mechanism
Project Sustainability
Project Risk
Inadequate Funding
Inadequate Implementation
Mechanisms
Adverse Impact on State Finances