PROJECT FORMULATION
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PROJECT FORMULATION
Project formulation is the systematic development of a project idea for the eventual objective of arriving at an investment decision. Project formulation is a process involving the joint efforts of a team of experts.
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PROJECT TEAM MEMBERSOne Industrial Economist.One Market Analysis.One or more technologist/engineer
specializing in the appropriate industry.One mechanical and /or industrial engineer.One civil engineer, if needed.One management accounting expert.
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NEED FOR PROJECT FORMULATIONSelection for Appropriate
Technology.Influence of External Economics.Dearth of Technical Qualified
person.Resource Mobilization.Knowledge about Government
Regulation.
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ELEMENTS OF PROJECT FORMULATION1. Feasibility Analysis. a) prefeasibility study b) Feasibility study2. Techno-economic Analysis a) Determination of project demand
potential b) selection of optimal project strategy3. Project design and Network Analysis4. Input Analysis5. Financial Analysis6. Social cost – benefit Analysis
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RUBINI