Investment Project (IP) is a document that is financially (economically), technically and socially justified investment objectives, assessing return on investment (commercial project) and others efficiency indicators indicating the funds required for the implementation of the project and financing sources and deadlines. The results of the project must be a consequence of the project activities, the project activities must create preconditions to implement the objectives of the project and the latter to achieve the set objectives.
What is the purpose of preparation of investment project?
The purpose of IP preparation is to find a solution to the causes of the identified problems. It is the optimal solution alternative, improving or increasing the quality of the existing service efficiency in its development or the creation of new services if the market without the State or municipal intervention would not provide such a service
What works IP preparation includes?
IP preparation includes:
Detailed analysis of the problem situation and/or services, due to which the implementation of IP is necessary;
Analysis of changes and trends in the service, justification of the need for the service, the definition of the requirements for the specific changes to be pursued in the implementation of the IP feasibility and analysis of alternatives;
Cost-benefit analysis of the project;
Sensitivity and risk analysis of the project;
Drawing up a plan for the implementation of the optimal alternative (setting out a their connections, importance, place in the overall course of the project).