Project Development Cycle

A typical project would go through a development

process having the following three distinct phases:

1.Pre-investment: Leads to the authorization for a

particular project idea under prevailing condition.

2.Investment: Detailed design and actual

implementation.

3.Operatioan: Commissioning (or start-up) of the

completed project.
 Pre-investment Phase
• Identification of relevant investment opportunities
through opportunity study.

• Preliminary filtration of project ideas through pre-

feasibility studies.

• Project formulation resulting in detailed (techno-

economic) feasibility report.

• Final evaluation and decision

 Investment Phase
• Negotiation and Contracting
• Detailed Project Design and Engineering
• Construction and Erection
• Trial Runs, Commissioning and
Optimization
 Operation Phase
This phase involves day to day operation of
the completed project, and is expected to
yield results which meet the original
objectives for which the project had been
conceived, formulated and implemented.
 Pre-Feasibility Study
• Normally within three months a pre-
feasibility study is ready.
• Through this study investor should be able
to decide:
– Whether the project can be straightaway
accepted or rejected
– The project requires a detailed study, or
– Some aspects of the project need to be
subjected to special investigations such as
market research, physical or mathematical
model, site surveys etc.
 Outline of a Pre-Feasibility Study
1. Executive Summary
2. Project Background and history
3. Analysis of Demanded Supply
a) Demand capacities and market
b) Sales forecast and marketing
c) Production programme
d) Plant capacity
4. Analysis of Inputs
5. Location and site
 Contd…
6. Engineering & Technology
7. Organization
8. Manpower
9. Execution and methodology
10. Financial & Economic evaluation