Investment Proposal Requirements

In the event that a client wishes to create their own Investment Proposal then the following format should be followed.

• Brief description of project.
• Sponsorship, management and technical assistance:
  • History and business of sponsors, including financial information.
  • Proposed management arrangements and names and curricula vitae of managers.
  • Description of technical arrangements and other external assistance (management, design, implementation, marketing, finance, etc.).
• Market and sales:
  • Basic market orientation: local, national, regional, or export.
  • Projected project size, unit prices, sales objectives, and market share of proposed venture.
  • Potential users of products and services and distribution channels to be used. Present sources of supply for products.
  • Future competition and possibility that market may be satisfied by substitute products and services.
  • Tariff protection or import restrictions affecting products and services.
  • Critical factors that determine market potential.
• Technical feasibility, manpower, raw material resources, and environment:
  
  • Brief description of project implementation process.
    
  • Comments on special technical complexities and need for know-how and special skills.
    
  • Possible suppliers of equipment and services.
    
  • Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.).
    
  • Breakdown of projected operating costs by major categories of expenditures.
    
  • Source, cost, and quality of material supply and relations with support industries.
    
  • Import restrictions on required materials.
    
  • Proposed plant location in relation to suppliers, markets, infrastructure and manpower.
    
  • Proposed project size in comparison with other known projects.
    
  • Potential environmental issues and how these issues are addressed.
• Investment requirements, project financing, and returns:
  
  • Estimate of total project cost, broken down into land, construction, installed equipment, and working capital,indicating foreign exchange component.
    
  • Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing.
    
  • Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount.
    
  • Projected financial statement, information on profitability, and return on investment.
    
  • Critical factors determining profitability.
• Government support and regulations:
  
• Project in context of government economic development and investment program.
  
  • Specific government incentives and support available to project.
    
  • Expected contribution of project to economic development.
    
  • Outline of government regulations on exchange controls and conditions of capital entry and repatriation.
• Timetable envisaged for project preparation, implementation, completion and operations.