Project formulation - financing Arrangements.pptx

It describes the Project formulation - financing Arrangements and finalizing of projects and implementation of schedule

1. PROJECT FORMULATION-FINANCING ARRANGEMENTS, FINALIZATION OF PROJECT, IMPLEMENTATION SCHEDULE. BY YUVASRI.P MHA SECOND YEAR.

2. PROJECT FORMULATION Project  formulation  refers to the development of the project from the generated idea of the firm, the idea is the seed of the project. Project formulation  includes  the total procedures or activity of altering the project concept, theme etc. Project formulation task  defines  the parameters of the proposed project and develops the  objectives  and outputs of the project in broad terms. It aims at gaining preliminary formal commitment to the project and the  project idea  to justify the further work on it. It serves at the basis of project planning. It is the basis of project planning.

3. FINANCING ARRANGEMENTS PROJECT FINANCE Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary collateral. Project finance is especially attractive to the private sector because companies can fund major projects  off-balance sheet (OBS) .

4. SOURCES OF PROJECT FINANCING Private Debt Debt that is raised by investment banks Cheaper cost of capital than equity financing since debt holders will be repaid first Public Debt Debt that is raised by the government under advisement of an investment bank or advisor Cheapest cost of capital since it is a government sponsored program used to spur infrastructure development Equity Financing Equity that is raised by a developer or private equity fund Highest cost of capital since equity is repaid last and rates of return must reflect the riskiness of investment

5. ADVANTAGES AND CHARACTERISTICS OF PROJECT FINANCING permit an off-balance sheet treatment of the debt financing maximize the leverage of a project circumvent any restrictions or covenants binding the sponsors under their respective financial obligations avoid any negative impact of a project on the credit standing of the sponsors

6. FINALIZATION OF PROJECT Finalizing the Project Plan This last (but not least) step of the Vision phase builds the project plan that will deliver performance improvement of the “Process-in-Focus.” Here, the organization appoints the senior team, executive champion, project manager, and the project team members for the next two phases: the Understand phase and the Renew phase. The team undergoes training and gains commitment to the plan. Techniques The techniques of finalizing a project plan are based on common sense and time-proven approaches to ensuring a common understanding and assurance of support: Personal commitment-based project management Deliverable-based project planning Negotiation

7. IMPLEMENTATION SCHEDULE The Project Implementation Schedule  is a chart that clearly lists all the tasks necessary to complete the project and related deadlines. This Schedule is the most important part of planning because it will become the tool to use for the  monitoring  and  evaluation  phases of the project.

8. The development of the  project implementation schedule  refers to the following two statements: The schedule creates a framework for the whole project implementation plan and facilitates creation of the work breakdown structure (WBS) by placing the related activities, tasks and responsibilities on timeline. The schedule outlines the project phases and their overlaps and shows them on the common project’s timeline.

9. When all the components of the schedule for project implementation are defined and the schedule is developed and designed, you need to make sure that this document has been checked and approved by stakeholders (the sponsor) and the project manager in order to ensure that its content is appropriate and its targets are clearly stated and achievable.

10. REFERENCE https://www.lexology.com/library/detail.aspx?g=e46af35a-2fe6-4da4-8bd5-cf6908942b3f https://www.oreilly.com/library/view/business-process-management/9780768683653/9780768683653_ch12lev1sec9.html https://sceweb.sce.uhcl.edu/helm/TASGOVPM/project_life/finalising_a_project/finalising_a_project.htm

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