This module examines demand for the goods and services of a project in thedomestic or foreign market...

This module examines demand for the goods and services of a project in thedomestic or foreign market and the supply condition expected to prevail duringthe project ¶s life. 2)Technical or engineering module This module is concerned with a project¶s input parameters, quantities and pricesof inputs by type required for project construction, inputs required for theproject¶s operation by year, and the propriety of the technology adopted. It is alsoconcerned with issues such as project size, design and location, and thetechnology to be adopted including equipment and processes to be used.Assessment of the environmental impact caused by inputs, outputs or technologyshould be a central component of this module. 3)Manpower and administrative support module This module reconciles the project¶s technical and administr ative requirementswi th the supply constraints on manpower. Whether future financial and economicbenefits materialize depend on whether there is sufficient administrativecapabili ty within an agency in charge to put the project in place. 4) Financial module This module provides the first integration of financial and technical variablesestimated in the marketing, technical and manpower modules. A cashflow profileof the project is constructed, which identifies all receipts and expendituresexpected to occur during a project¶s lifetime. 5) Economic module Economic appraisal examines the project from the entire economy¶s point of viewto determine whether or not its implementation will improve the economicwelfare of the country or the region. Benefits and costs are measured usingtechniques to determine the economic prices of goods and services, foreignexchange and the cost of capital and labor. True economic values of costs andbenefits are not reflected in market prices in the presence of various distortionssuch as trade restrictions, price control, taxes, subsidies and minimum wages. 6) Social module This module deals with the identification and quantification of the project¶simpacts on its stakeholders, including the well-being of particular gro ups insociety. 7) Institutional module This module addresses the following issues: -Is the entity supposed to manage the project properly organized and its managemen t equipped to handle the project? -Are local capabilities and facilities being properly utilized ? -Are changes needed in the policy and institutional setup outside this local entity? 8) Environmental module This module should address the f ollowing issues: -What impact will the project have on the environment? -What equipment or facilities will be required to reduce or eliminate the pollution from the project and what will be their cost? -What will be the cost of providing remed ies to the adverse impact created by the project? Project approval and financing negotiations After all modules in the feasibility phase have been completed, the project mustbe examined to see if it can meet the financial, economic and social criteria set by thegovernment (e.g., the NEDA ICC) for investment expenditures. This is the final part ofproject appraisal and is meant to improve the accuracy of

This module examines demand for the goods and services of a project in thedomestic or foreign market...

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