INTRODUCTION

In today’s business landscape, making informed and sound selection and evaluation decisions before committing significant resources to a new capital project is essential. Since projects and capital expenditures often represent a large portion of an organization’s financial outlay, it is crucial for decision-makers to objectively assess which proposals are most likely to yield favorable outcomes prior to embarking on development work and incurring substantial costs.

The decision-making process necessitates skills in evaluating the organization’s capabilities and opportunities using various methodologies. While managers responsible for project proposals may possess technical expertise, they often lack the training necessary to conduct a thorough analysis of whether their projects are the best candidates for advancement.

This Project Policy & Financial Appraisal training course will emphasize:

– The significance of comprehensive project identification and appraisal
– Contemporary stakeholder and policy considerations, including environmental and social factors impacting project evaluation
– Investment decision analysis utilizing time-adjusted metrics and real option techniques
– Fundamental cash flow management principles
– Understanding the short-term and long-term funding options for projects

MODULES

The training course is divided into two modules:

MODULE I – Project Appraisal: Identification, Policy Analysis & Selection
MODULE II- Project Appraisal: Financial and Economic Factors

Each module is self-contained but participants will gain the most benefit by attending both modules consecutively in a two-week training format.

Objectives

This course aims to equip procurement organizations with the insights needed to select the best projects amidst limited resources. It will focus on effective tools for managing the project appraisal process, highlighting key evaluation methodologies, from social and developmental policies to environmental and stakeholder considerations, while also covering critical economic and financial assessment issues.

By the end of the course, participants will be able to:

– Evaluate the appropriateness of different appraisal techniques for various project types
– Identify challenges in project comparison and selection
– Appreciate the advantages of enhanced appraisal and selection frameworks
– Apply economic and financial analytical tools and techniques using real-world scenarios
– Contribute to strategic financial decision-making and risk assessments

Training Methodology

The course will employ a blend of adult learning techniques, including formal lectures and interactive examples, to maximize understanding and retention. Daily workshops will foster active participation, encouraging discussions on key concepts in project appraisal and economic evaluation, the uses and limitations of various techniques, and strategies for identifying, evaluating, selecting, and structuring high-value projects.

Organizational Impact

Implementing robust project appraisal and economic evaluation techniques will enable organizations to anticipate potential future conditions that may present strategic opportunities or challenges, thus maximizing returns on capital investments and enhancing their reputation for delivering positive outcomes. Real-world case studies will illustrate how to apply various economic evaluation skills and analysis techniques effectively.

Personal Impact

Upon completion of the training course, participants will significantly enhance their contributions to their organizations. They will:

– Recognize the benefits of projects that have undergone thorough appraisal, selection, and economic evaluation
– Make more informed financial decisions using economic analysis models and techniques
– Compare and evaluate alternative project investment options, recommending those with optimal potential benefits
– Increase the chances of successful supplier tendering and project delivery
– Develop professional skills in analysis, evaluation, and decision-making

WHO SHOULD ATTEND?

This training course is designed for a diverse range of professionals involved in the development, appraisal, implementation, and management of projects. Participants with prior experience in project appraisal can share their insights, enriching the learning experience for all.

The course will particularly benefit:

– Project and contract personnel in both public and private sectors
– Technical specialists seeking a broader understanding of project planning and execution
– Government officials and public sector agency representatives
– Financial decision-makers looking to enhance their analytical techniques
– Managers involved in planning, risk assessments, and decision-making
– Project Management Professionals

Course Outline

Module 1: Project Appraisal: Identification, Policy Analysis & Selection

DAY 1
– Strategic Context of Project Decision Analysis
– Understanding Project Management Decision Analysis
– Project Management Maturity
– Managing Programs and Portfolios
– Strategic Planning and Policy Context
– Project Organization Structures and Their Implications
– Utilizing Subcontractors
– Key Issues in Project Appraisal
– Market, Technical, Environmental, and Social Analyses
– Stakeholder Engagement

DAY 2
– Defining Project Scope and Estimating Timelines
– Project Life Cycle
– Project Initiation and Planning
– Managing Uncertainty in Project Selection
– Understanding and Managing Project Scope
– Project Timeline Projections

DAY 3
– Evaluating Project Costs
– Budgeting Fundamentals and Cost Control
– Estimation Techniques
– Addressing Uncertainty in Estimates
– Resource Allocation and Cash Flow Projections
– Whole of Life Costs and Cost of Quality

DAY 4
– Analyzing Projects Under Risk and Uncertainty
– Risk Considerations and Contingency Planning
– Strategic Decision-Making Under Uncertainty
– Selecting Projects Aligned with Organizational Goals

DAY 5
– Strategic Project Selection
– Integrated Project Feasibility Studies
– Scenario and Sensitivity Analysis
– Psychological Influences on Investment Decisions

Module 2: Project Appraisal: Financial and Economic Factors

DAY 6
– Sources of Finance
– Evaluating Funding Options
– Long-term vs. Short-term Financing
– Understanding Equity and Debt Finance
– Weighted Average Cost of Capital (WACC)
– Capital Asset Pricing Model (CAPM)
– Risk Measures

DAY 7
– Investment Decision-Making
– Valuation Techniques for Various Economic Sectors
– Time-adjusted Measures
– Social Cost-Benefit Analysis
– Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Method
– Decision-Making Using NPV

DAY 8
– Managing and Modeling Cash Flow
– Developing Cash Flow Statements
– Cash vs. Profit
– Cash Conversion Cycle
– Preparing Monthly Cash Flow Forecasts

DAY 9
– Financial and Economic Decision-Making Challenges
– The Value-Creating Company
– Corporate Governance and the Agency Problem
– Relevant Financial Data for Analysis

DAY 10
– Revisiting Key Decision-Making Concepts
– Course Summary and Checklists
– Review of Cash and Capital Budgets
– Further Development of Financial Skills

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