Project Appraisal

Although specific requirements differ, any funding organisation be it international or a local bank, requires as a minimum a basic technical and financial project appraisal, before agreeing to finance any project. Clearly the greater the funding sought and the higher the perceived risk, the more thorough will be the requirements of the financiers in terms of information provided and the verification procedures. The "transaction costs" incurred by the investor in seeking funding and in managing the finances as required by the financing institutions should not be ignored and should be considered in advance as part of the project.

Technical project appraisal includes:

• examination of the performance of the new technologies or techniques being considered;

• comparison of new technologies or techniques with current technology or practice if applicable;

• estimation of energy savings or generation;

• assessment of environmental benefits and comparison with any legislative requirements.