The document discusses various analyses needed for project management including technical, economic, financial, environmental, and market analyses. It provides details on the types of questions that should be considered in each analysis. For technical analysis, it describes assessing available resources, scale of operation, and production processes. Economic analysis involves determining direct/indirect costs and benefits as well as impacts on income distribution and social goals. Financial analysis assesses project costs, financing, profitability, and risk. Environmental analysis considers potential damage and restoration costs. Market analysis examines demand trends, supply, competition and customer research. Procurement and use of consultants are also outlined.

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Chapter 6
Project ManagementProject Management

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Technical Analysis
Analysis of the technical and engineering aspects of a
project needs to be done continually when a project is
formulated. Technical analysis seeks to determine whether
the prerequisites for the successful commissioning of the
project have been considered and reasonably good choices
have been made with respect to location, size, process, etc.
The important questions raised in technical analysis for the
ICT projects are:
Whether the preliminary tests and studies have been done
or provided for?

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Whether the availability of human resources, power, and
other inputs have been established?
Whether the selected scale of operation is optimal?
Whether the production process chosen is suitable?
Whether the equipment and machines chosen are
appropriate?
Whether the auxiliary equipments and supplementary
engineering works have been provided for?
Whether provision has been made for the treatment of
effluents? ,Whether work schedules have been realistically
drawn up?

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Economic Analysis
Economic analysis, also referred to as social cost benefit
analysis, is concerned with judging a project from the larger
social point of view.
The questions sought to be answered in social cost benefit
analysis are:
What are the direct economic benefits and costs of the
project measured in terms of shadow (efficiency) prices and
not in terms of market prices?
What would be the impact of the project on the distribution
of income in the society? What is the impact on digital divide
of the investment project? Cont…….

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Project AnalysisProject Analysis
What would be the contribution of the project towards the
fulfillment of certain merit wants like self-sufficiency,
employment, and social order?
Financial Analysis
Financial analysis seeks to ascertain whether the proposed
project will be financially viable in the sense of being able to
meet the burden of servicing debt and whether the proposed
project will satisfy the return expectations of those the
shareholders (owners of the firms). The aspects which have to
be looked into while conducting financial appraisal in ICT
projects are:

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Investment outlay and cost of project
Means of financing Cost of Capital
Projected profitability
Break-even point
Cash flows of the project
Investment worth wholeness judged in terms of various
criteria of merit.
Projected financial position. Level of risk

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Environmental Analysis
In recent years, environmental concerns have assumed a great
deal of significance and rightly so. Investment in the
ICT/Telecom industry should give much consideration on the
environmental aspects. Among the question to be asked include:
What is the likely damage caused by the project to the
environment? E.g. how used prepaid vouchers/cards affect the
environment? How installation of transmission stalls affect the
environment?
What is the cost of restoration measures required to ensure
that the damage in the environment is contained within
acceptable limits?

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Project AnalysisProject Analysis
Market Analysis
Market analysis is concerned primarily with two questions:
What would be the aggregate demand of the proposed
product/service in future?
What would be the market share of the projects under
appraisal?
To answer the above questions, the market analyst requires a
wide variety of information and appropriate forecasting
methods. The kind of information required are:

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Consumption trends in the past and the present consumption
level (for telecommunication companies the number of
telephone lines, mobile subscribers, air time rates, etc are
important factors to be considered)
Past and present supply position (Who supplies what
services?)
Production possibilities and constraints (In
telecommunication industry, bandwidth and regulatory
framework matters a lot)
Structure of competition (the regulations regarding
competitions)

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Cost structure (Cost models used in costing variable and
fixed costs, direct and indirect costs)
Elasticity of demand
Consumer behavior, intentions, motivations, attitudes,
preferences, and requirements.(e.g. on telephone accessories
and types of telephone products)
Distribution channels and marketing policies in use (Should
the company use a pre-paid service or billing system?)
Administrative, technical, and legal constraints.

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ProcurementProcurement
Managing the procurement process is an important aspect of
project implementation.
Delays in acquiring the necessary goods and works are likely
to be compounded into future delays in acquiring necessary
goods and works are likely to be compounded into further
delays & increase the cost of the project as whole.
Procurement must serve three objectives
To help & ensure the efficient execution of the project by
acquiring goods & works with optimal combination of
quality,price & delivery time

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Use of ConsultantsUse of Consultants
Procurement consulting services raises different issues
Question of need : If local staff is are not experienced & in
house capacity does not exist
Establishing a local consulting industry is desirable both to
provide some competition to stimulate agency staff & to
supply more specialized skills.
The consultant-Client relationship is very close,personal one
& trusty.When a satisfactory relation exists ,it is sensible to
continue

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End Of
Chapter 6