iii.  National Level51

a  Project name and description including:

i  Proposed ownership structure and sponsor information

ii  Legal status of project and status of government approvals (including government and/or local authorities' attitude toward project, exemptions/advantages to be enjoyed by project, licenses, permissions required, proposed measures/actions that could affect the project), and 

iii  Project's anticipated economic contributions (e.g., in the generation of foreign exchange, employment, technology transfer)

a  Project site

i  Size and location of project site (in relation to availability of raw materials,  utilities, labor, and accessibility to its markets)

ii  Current use and value of land for project site; estimated value in new use 

iii  Infrastructure requirements 

iv  Legal agreements for land use rights 

v  Existing pollution-related liabilities

b  Civil works and buildings 

c  Major and auxiliary equipment 

i  Estimated requirements and costs (imported vs. local and duties) 

ii  Potential suppliers/contractors 

d  Project management (plant construction and supervision services, including background and experience of supervisor

e  Pre-operating requirements and costs 

f  Contingencies (physical) and escalations (financial) 

g  Initial working capital requirements 

h  Contracting and purchasing procedures to be used

a.  Construction, startup, operations

b.  Expenditures

c.  Funding (including timing of funds needed during project implementation)

d.  Regulatory compliance

a  Production technology vs. state of the art

b  Scale and scope of production 

i  Rated capacity and comparison with optimal sizes 

ii  Expected operating efficiency

iii  Frequency of shutdowns, changeovers 

iv  Previous experience with technology (including patents, licenses held)

c  Production process

i  Plant layout and production flow diagram 

ii  Critical operations/bottlenecks 

iii  Options for future expansion or modification

d  Production requirements and costs (per unit)

i  Raw materials (sources, quality, local vs. domestic, contractual arrangements)

ii  Consumables 

iii  Utilities (sources, reliability) 

iv  Labor 

v  Maintenance 

vi  Fees and royalties 

vii  Expected changes in operating efficiency

e  Annual capital investment

f  Quality control

g  Technical assistance agreements

i  Status of negotiations (proposed terms)

ii  Patents and proprietary technology

iii  Training and support for plant staff

a.  Description of environmental impact

b.  Plans for treatment of emissions and disposal of effluents

c.  Occupational health and safety issues

d.  Local regulations (plans for compliance)

a.  Product definition

b.  Competitive position of product/company

i.  Product advantages vs. competition (current and future-price, quality, etc.)

ii.  Target market(s) (including population and per capita GNP and their future growth)

c.  Market structure

i.  Demand (volume and value of annual consumption of products to be made by project-last five years, future five years)

ii.  Supply (domestic vs. foreign-capacity, cost position, strategy)

iii.  Existing and projected tariff situation affecting products

iv.  Market trends in future (new products, potential competitors, etc.)

v  Projected market share by segment 

d  Marketing, distribution, and sales organizational arrangements and fees

a.  Organization chart and manpower requirements

b.  Key operational officers (including background and length of experience)

c.  Technical staff and consultants (background and experience)

d.  Management targets and incentives

e.  Management agreement

f.  Personnel practices

a.  Total cost of project (including details on major items of fixed assets and working capital)

b.  Background statement on all sponsors and participants, showing their financial or other interest in the project in construction, in operations, and in marketing

c.  Capital structure (proposed amounts and sources)

i  Proposed debt/equity structure

ii  Equity

(a) Shareholder structure

(b) Long-term plans (stay private/go public)

(c) Quasi-equity (subordinated debt, etc.)

iii  Debt

(a) Long-term debt/working capital

(b) Domestic/foreign

(c) Desired terms and conditions

(d) Funding sources already identified (note any funding restricted in use)

iv  Overrun/standby arrangements

d  Margin and break-even analysis

i  Unit cost structure as percent of unit sales price

ii  Cash and full-cost bases

iii  Fixed and variable costs

e  Financial projections

i  Projected financial statements (income statements, cash flows, balance sheets, sales revenues, production costs, depreciation, taxation, etc.) 

ii  Clear statement of all assumptions 

iii  Sensitivity analysis under different scenarios 

a  Joint venture agreements

b  Articles of association

c  Government approval documents/business license

d  Land certificate/red line map

e  Mortgages, if any

f  Loan agreements

g  Major contracts including

i.  Off-take agreements

ii.  Supply agreements

iii.  Technical assistance agreement

iv.  Management agreement

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51  Information has been assembled using IFC's project appraisal requirements