Project analysis is one of the main types of work (research method) carried out by the project initiator at the pre-investment stage of the project in order to determine the socio-economic efficiency of the project, the complex of risks, the feasibility of the project and its financing.
The project analysis is also the main method of project examination by the financial institution (Bank, Fund) in order to make a decision on its participation in the project (form of participation, instruments, cost of financing instruments used). The actual examination of an investment project is a process of analyzing its compliance with the requirements of a commercial Bank (or other financial institution), as reflected in the investment policy of the Bank and the relevant regulatory documents of the Bank.
Project analysis is also a necessary tool for monitoring the ongoing investment project, a comprehensive assessment of its actual effectiveness.
Thus, project analysis should be used at all stages of the project life cycle. The results of the project analysis are used not only to make a decision on its implementation, but also to ensure that the actual effectiveness of the project is consistent with its calculated efficiency, presented in the business plan of the project.
The main principles of project analysis are:
consistency, i.e. taking into account the whole system of relations between the project participants and their economic environment, the most important factors affecting the costs and results of each participant, as well as internal, external and synergistic effects. For such accounting the description of the project should include a description of the possible mechanism of interaction of all project participants (organizational and economic mechanism of the project);
the complex nature of the project analysis( and project expertise), which provides for the use of various types of project analysis and preparation of a comprehensive business plan of the project (or conclusion on the results of expertise);
taking into account all the most significant consequences of the project. In assessing the effectiveness should take into account all the significant consequences of the project, both directly economic and non-economic (social, environmental, impact on the security of the country). In cases where the effect of such impacts of the project on the efficiency allows for a quantitative assessment, it should be done. In other cases, this influence should be taken into account by an expert;
analysis of the project throughout its life cycle (by individual participants-before leaving the project);
application of modern international standards of project management and project evaluation;
compliance with the development strategy and investment policy of the country, region, company (Bank);
the presence of a positive social and economic effect of the project;
high quality and sufficiency of project and other documentation required for the preparation of the project business plan (or project expertise in the Bank).
Modern project analysis uses various types of project analysis, taking into account the accumulated experience, our company is ready to offer our services in this direction.