Meaning, Definition and Scope of Project Appraisal

A PowerPoint presentation on the meaning, definition and scope of project appraisal. It also includes the aspects and steps to project appraisal

1. PROJECT APPRAISAL: MEANING, DEFINITION AND SCOPE JITHA ASOKAN KH.AR.P2COM20004

2. INTR O DUCTI O N Project appraisal is an exercise whereby a lending financial institution makes an independent and objective assessment of various aspects of an investment proposition to arrive at the financing decision. Appraisal exercises are aimed at determining the viability of project and in reshaping the project so as to upgrade its viability.

3. MEANING OF PROJECT APPRAISAL The exercise of project appraisal simply means the assessment of a project in terms of its: Economic Social Financial viability.

4. ASPECTS OF PROJECT APPRAISAL PROJECT APPRAISAL FINANCIAL SOCIAL LEGAL TECHNICAL COMMERCIAL ECOLOGICAL ECONOMIC MANAGERIAL ORGANIZATIONAL

5. DEFINITION OF PROJECT APPRAISAL Project Appraisal means an analysis of a project to establish its fiscal, financial and technical viability, economic worthwhile, benefits to stakeholders and how risks associated with the project are identified and mitigated. It means a pre-investment analysis of project to determine whether the project should be implemented or not.

6. SCOPE OF PROJECT APPRAISAL The common aspects of project appraisal include: Market feasibility study Technical feasibility/viability Financial soundness Management and organizational aspects/managerial soundness Economic viability/appraisal Environmental appraisal/viability Different aspects of a project are not independent but are highly inter-related.

7. STEPS TO PROJECT APPRAISAL ECONOMIC Indicates priority use 01 TECHNICAL Involves scale of project and process adopted 02 ORGANIZATIONAL Suitability is examined 03 MANAGERIAL Adequacy and competence are critically scrutinized 04 FINANCIAL Determines financial viability for sound implementation and efficient operation 06 OPERATIONAL Capability of the project 05

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