By Adithya Ambapurkar

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Jawaharlal Nehru Architecture and Fine Arts University
School of Planning and Architecture
Department- Urban and Regional Planning
Subject- Project Formulation, Appraisal and Management
Topics- Project Management Life cycle
Project appraisal important points
Income and expenditure statement
Name- Adithya A
Roll No- 17011BA001

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Phases of Project Management Life cycle
Steps of CSP Preparation (City Sanitation Plan)
Initiating
CSP
•Stakeholder
mapping
•Constitution
of CSTF
•CSTF to kick
start
•the process
of CSP
preparation
Preparation of
status report
•Baseline data
collection
Ex- city profile,
water suppl,
wastewater,
solid waste,
storm water,
access to toilets
•Review baseline
to identify data
gaps
Draft CSP
•Data analysis
and
interpretation
•Demand supply
issue gap
analysis
•Identification
of key issues
•Formulation of
sanitation vision
Final CSP
•Sectorial
strategies
and
recommendati
ons for
identified
issue
•Action plan:
short,
medium and
long term
•Approval of
CSP

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Selection of Infrastructure project by ULB
Construction stages for highway project
Road Project
Estimating total project cost
Choosing financing options for project execution
• funding
• revenue
Selecting mode of project implementation
Installation of light poles, road signs and signals
Construction of pavement structure
Contruction of drainage structure
Ex- bridges and culverts
Earthwork for laying embankment
Clearing site
Setting up plant at project site

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Construction stages of New Water Supply Scheme
Construction operations for construction of RCC retaining wall
Methodology for Project Formulation and Appraisal
There are five stages in the preparation of a project and its appraisal of a housing project
Construction of water treatment plant
Installation of transmission lines and construction of tunnels
Installation of pumping house
Construction of spillway and controls
Construction of suitable dam type
Clearing reservoir site
Backfilling the earth
Pouring of concrete
Placing of reinforcement
Erection of form work
Excavation by manual labour
Excavation by machine

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I. Feasibility studies
Form the initial part of project preparation. Their purpose is to establish whether or not a
project might be successful before committing substantial funds to it.
a) Identify the target population and its housing needs:
i. Identify economic characteristics
ii. Identify household characteristics
iii. Identifying housing demand
b) Outline assessment and selection of project site
i. Assessing the site availability
ii. Initial evaluation of site location
iii. Identifying site area and shape
iv. Identifying existing land tenure
v. Identifying site boundaries
vi. Initial assessment of site topography and landscape
vii. Initial assessment of ground conditions
viii. Identifying pollution problems
c) Assessing initial site development options
i. Initial assessment of housing layouts and densities
ii. Initial assessment of plot development
iii. Initial assessment of commerce and industry
iv. Initial assessment of requirements for public facilities and recreation
v. Identifying other land uses
vi. Initial assessment of circulation and transportation
vii. Initial assessment of requirements for utilities
d) Institutional and financial framework
i. Assess the capacity of the institutional framework
ii. Identifying the financial framework
II. Detailed studies
It will provide descriptions and measures or parameters for which and within which the
project will be designed. Examples are the likely number of families, the existing means of
services, problems involved, likely amounts of money, available, the administrative system
available and the nature and cost of the site.

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a) Survey of the target population and its housing needs
i. Economic characteristics of households
ii. Household characteristics
iii. Household attitudes to their locality
iv. Household attitudes to plot characteristics
v. Relationship between households and their dwellings
vi. Potential for community involvement
vii. Nature of housing demand
b) Detailed analysis of project site
i. Site location
ii. Site area and shape
iii. Land tenure
iv. Site boundaries
v. Site topography and vegetation
vi. Ground conditions
vii. Local climate
c) Survey and analysis of existing site development
i. Existing housing layouts and densities
ii. Existing plot sizes and shapes
iii. Existing buildings
iv. Public facilities and recreation provision
v. Commerce and industry
vi. Other existing land uses
vii. Circulation and transportation
viii. Existing utilities
d) Institutional and financial framework
i. Institutional framework
ii. Financial framework
iii. Assessing the ability to pay
III. Options for development
This stage represents the key part of project planning when all the options are likely to be
relevant to the project are identified, their relevant advantages and disadvantages
assessed and a preferred group of options selected

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The most important test will be whether the proposals will be appropriate to the people
who will live in the project area. Their needs and resources should thus form the basic
criteria against which options are measured
a) Formulating site development options
i. Housing layout and density
ii. Plot sizes and shapes
iii. Building
iv. Commerce and industry
v. Public facilities and recreation
vi. Incorporation and transportation
vii. Utilities
b) Institutional and financial framework
i. Selecting the institutional framework
ii. Land tenure
iii. Developing financial options
IV. Detailed Development proposals
This is the development of both the physical design and the financial and administrative
aspects in detail
a) Designing site development
i. Housing layouts
ii. Housing building
iii. Commerce and industry
iv. Public facilities and recreation
v. Road layouts
vi. Utilities
b) Institutional and financial framework
i. Institutional framework
ii. Financial framework
iii. Phasing
V. Implementation

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i. Monitoring
ii. Evaluation
Financial appraisal techniques
 Payback period
 Marginal payback on must-do investments
 Interactive: full payback vs marginal payback
 Return on investment (RoI)
 Net present value (NPV)
 Interactive: NPV vs Payback
 Internal rates of return (IRR)
 Life cycle costing
Components of financial appraisal of a project
1) Return on investment (ROI): for the investment to be financially viable, the RoI
should be greater than the cost of investment
2) Debt service coverage ratio (DSCR): Running an enterprise with financial support
from banks/financial institutions requires their loans to be repaid with interest.
Therefore, an entrepreneur must generate surplus, adequate to meet repayment
obligations
Net profit + interest (on long term loans) + depreciation/interest (on long term loans) +
principal loan
A project is considered financially viable if the cumulative DSCR during repayment period
is at least 2:1
3) Break-even point (BEP): the break-even point is the point of activity where all costs
(variable as well as fixed) are recovered from the sales values. The thumb rule is
lowering the break-even betters the proposition
4) Debt-equity ratio: this ratio indicates the extent to which the promoter’s funds are
leveraged to procure loans. The formula of der is:
DER= total long-term debt/Total promoter’s funds (includes subsidy)
A higher debt equity ratio indicates more risk due to a higher fixed cost of interest. The
BEP of such enterprises will go up

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MONTHLY INCOME
INCOME/EXPENSE STATEMENT PERSONAL
NAME: Krish A MONTH January
Instructions: List all income and/or monies that you and/or your spouse or significantother received
during the month. This personal financial statement is to be submitted by the 5th
day of each month with
the monthly supervision report and required payment(if applicable), or as directed by your probation
officer.
YOURS
SPOUSE OR
SIGNIFICANT
OTHER
TOTAL
Gross Salary 200000 200000
Net Salary 130000 130000
Commissions
Pensions
Social Security
Interest
Dividends
Alimony/Child Support
A.D.C. (Aid for Dependent Children)
Income of Other Dependents
Net Profit from Business
Net Rental Income 11000 11000
Gifts
Loans 100000 100000
Other Cash Assistance, etc.

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Other Income (i.e., expense
reimbursement, car allowances, etc.)
TOTAL INCOME (DO NOT INCLUDE SHADED BLOCK ABOVE) 241000
TOTAL MONTHLY EXPENSES (from Page 2) 157400
CASH FLOW (Income Less Expenses) 83600
Instructions: List all expenses that you and/or your spouse or significantother or dependent (I, J,
S, or D*) paid out during the month. If you share expenses with someone else, identify the portion
that you paid (i.e., 50%, 100%, etc.). This financial report is to be submitted by the 5th
day of
each month with the monthly supervision report and required payment, or as directed by your
probation officer.
*NOTE: I = INDIVIDUAL J = JOINT S = SPOUSE/SIGNIFICANT OTHER D = DEPENDENT
I,J
,
S,
D
FIXED EXPENSES I,J,
S,D
NECESSARY FLEXIBLE EXPENSES
Mortgage/Rent J Grocery/Household
Supplies
15000
J Utilities 1000 Clothing
Home Telephone Laundry/Cleaning
D Mobile Telephone 2000 Maintenance/Repairs
J Water/Sewer 1200 J 1) Home and Equipment 1000
Garbage 2) Automobile $
Child Care 3) Other $
Alimony/Child Support J Transportation 10000
Special Assessments J Medical Costs
(medical/dental/drug)
4000
Restitution D Education 41000
Fines
J Cable 200 INCIDENTAL PERSONAL
EXPENSES
J 500 1) $
2) $
AUTOMOBILE LOANS 3) $
J 1)CAR LOAN 6500 4) $
2)HOME LOAN 55000 5) $
MONTHLY
EXPENSES

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3) $ 6) $
INSTALLMENT/CREDIT CARDS
OTHER (Include all new purchases or
liabilities notidentified
elsewhere on this form.)
CURR. BAL. PAYMENTS
1) $ $ 1) $
2) $ $ 2) $
3) $ $ 3) $
4) $ $ 4) $
INSURANCE 5) $
1) Automobile $ 6) $
2) Home $
J 3) Medical 10000 TOTAL FLEXIBLE EXPENSES 71000
J 4) Life 10000
TOTAL FIXED EXPENSES 86400 TOTAL MONTHLY EXPENSES 157400

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INCOME/EXPENSE STATEMENT of a highway project

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