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Management Consultancy2

The document discusses the project development cycle, which includes three main phases: pre-investment, investment, and operational. The pre-investment phase involves identifying potential investment opportunities through studies like opportunity studies and pre-feasibility studies. It culminates in a feasibility study and evaluation report to determine the final investment decision. The investment phase covers project design, negotiation, construction, and commissioning. Finally, the operational phase relates to commencing actual production and distribution to achieve projected goals. The document provides details on each stage and studies involved in properly analyzing potential projects.

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Faith Estrada
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43 views

Management Consultancy2

The document discusses the project development cycle, which includes three main phases: pre-investment, investment, and operational. The pre-investment phase involves identifying potential investment opportunities through studies like opportunity studies and pre-feasibility studies. It culminates in a feasibility study and evaluation report to determine the final investment decision. The investment phase covers project design, negotiation, construction, and commissioning. Finally, the operational phase relates to commencing actual production and distribution to achieve projected goals. The document provides details on each stage and studies involved in properly analyzing potential projects.

Uploaded by

Faith Estrada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 21:

Aspects of Project
Development Cycle

Reported by : Amper, Zsharee Ynes A.


Introduction

 Private and public sector groups must select investments


commensurate with their development objectives and
targets.

 NOTE: the selection of sound investment projects has to


be undertaken in this context so as to ensure the
optimum utilization of scarce human and capital
resources towards meeting social objectives and
growth.
PROJECT DEVELOPMENT CYCLE

Pre -
Investment
investment

Operational
Stages in Pre-investment Phase

 (Opportunity studies) Identification of investment.

 (Pre-feasibility studies) Preliminary project selection and definition.

 (FEASIBILITY STUDIES) Project formulation.

 (Evaluation Report) Final evaluation and investment decision.


Investment (Implementation) Phase

 Project and engineering design.


 Negotiation and contracting.
 Construction.
 Training
 Plant Commissioning.
Operational Phase

Relates to commencement of actual


production, marketing and distribution of
goods to achieve the projected goals and
objectives of the firm.
PROJECT DEVELOPMENT CYCLE

Pre-investment Phase Investment Phase Operational Phase

Opportunity Pre-feasibility Techno- Evaluation Negotiation Project Construction Start


Study study economic Report and design stage stage up
feasibility contacting stage
study stage

Investment Promotion Activities

Implementation Planning and Follow-up

Capital Investment Expenditure


Categories of Pre-investment Studies
Decision Analysis tool study Design goal

A. Identification General or project opportunity a. Identify opportunity.


studies b. Determine critical areas for support
studies.
c. Determine area for pre-feasibility study.

B. Preliminary analysis Support studies a. Determine possible choices more viable.


b. Identify choice of project criteria.

Pre-feasibility study a. Determine provisional viability of the project.


b. Appraise if the feasibility study should be
launched.

C. Final analysis Support studies a. Investigate in detail selected criteria


requiring in-depth study.
Feasibility study a. Make final choice of the project.
b. Determine the feasibility of the project and
selected criteria.
D. Project evaluation Evaluation study Make the final investment decision
Identification of Investment Opportunities
(Opportunity Study)
 Natural resources
 Existing agricultural pattern
 Future demand of certain consumer goods
 Imports in order to identify areas for import substitution
 Manufacturing sectors successful in other countries with similar levels of development, capital,
labor, natural resources and economic backgrounds.
 Possible extension of existing lines of manufacture by backward or forward integration.
 Possible expansion of existing industrial capacity to attain economies of scale
 Possible diversification
 The general investment climate
 Export possibilities
 Cost and availability of production factors
The END

Thank you and God bless


you!

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