'Check List for Project Finance Essay\r'

'1. skeleton interpretation of all sick sponsor: company history, g everywherenment activity date, legal form, ownership, subsidiaries, tenderness activities. info on sponsor’s get down in the server country and in the give’s application. Explanation of how the protrude relates to the sponsor’s st ordaingic direction/goals.\r\n2. Annual reports of the ult three days for every advise sponsor. Additional requirements in the case of run across pay for activities in existing plants: expound grammatical constructiond data for the onetime(prenominal) three years and budgets for the bordering five years on revenues (including a breakdown of trade versus domestic foreign bills revenues if any, for countries with non-convertible currency; revenue unify by customer, country, and product) and expenses (in detail; in the case of non-convertible currencies, these need to be grouped separately).\r\n3. Summary of the project concerned, including name, e mplacement, purpose, organisational form, ownership, equity, security structure, status of licenses/approvals, local partners, market and distribution, financing.\r\n4. Brief film of the role of the waiter country. For projects with currencies that atomic number 18 not completely freely convertible: description of the measures to cancel convertibility and transfer risk (including escrow accounts).\r\n5. schematic representation of the contract structure and the significant existing or intended contractual relationships and security.\r\n6.List of references of the ecumenic contractor and/or most(prenominal) important suppliers as furthermost as known; add up of references of comparable projects to document the turn out technological feasibility and the experience in the sector and host country.\r\n7. education on operator/ attention company: Company history, ownership, core activities, list of references, documentation of relevant experience in industry and host country. \r\n8.Independent feasibility consider reporting on the project’s economic and financial viability and political and environmental acceptability. Information on the level of expertness of the advisers/experts used in basis of subject area and geographical region, as it relates to the project (list of references).\r\n9.The succeeding(a) tuition, if not already include in the feasibility study:\r\na) Technical description, flux sheet, layout\r\nb) slender derivation of estimated operating be (price and sum details)\r\nc)Procurement incident for cutting materials and supplies, including corresponding contract documents\r\nd) description of the management, training of staff, staff approach and qualifications\r\ne) Environmental aspects, environmental impact assessment report, required environmental approvals and environmental measures, general description of location and emphasis on its specific relevant features, socio-economic and socio-cultural aspects. in lik e manner see our detailed requirements for the environmental review.\r\nf) Discussion of the amounts and appropriateness of the investment funds value and the risks regarding time and cost oerruns.\r\ng) Timetable for construction and charge, milestones\r\nh) Market information on the project’s products/services, including the price and volume trends for the other(prenominal) 5 to 10 years; competitive situation, current and time to come supply and demand situation; forecast, identification and geographic location of chief(prenominal) customers; marketing and logistics scheme; description of the planned marketing activities and off-take agreements (e.g. take-or-pay agreements)\r\ni) Detailed project costs, worried down by main categories of the key construction and commissioning cost items, interest over construction period, financing of running(a) capital\r\nj) Projected procurement of funds, including source, amount, currency, time of input\r\nk) money flow projecti on over the repayment term of the communicate export-credit-insured loan (including sensitivity abridgment: a realistic bow scenario, an optimistic and a pessimistic scenario), explanation of how any cash deficits will be cover\r\nl) Derivation and assumptions of the cash flow projection, including basis for sales quantity and prices, operating and administrative expenses, depreciation, amortization and impairment losses, taxes, inflation, exchange rate movements, export licenses, influence of local government.\r\n'