2. Group Members
Serial
No.
Name Designation Place of Posting
1 Md. Moshiur Rahman Senior Officer Ladies Br, A.O,
Rajshahi
2 Mst Tanzila Khatun Senior Officer Badda Br.,A.O,
Dhaka
3 Md Masum Ahmed Officer Satkhira Corp. Br,
AO,Satkhira
4 Md Nazmul Islam Senior Officer Cumilla Corp.
Br.,A.O,Cumilla
5 Prosenjit Roy Senior Officer Fulbari Bazar
Br.,A.O,Dinajpur,
3. Concept of Project
A project is an endeavor undertaken to create a unique
product or service by utilizing prevailing assets.
A project is a combination of set objectives to be
accomplished within a fixed period. They are an
excellent opportunity to organize your business and
non-business goals efficiently
4. Characteristics of a Project
Projects are Bound by Time
Projects are Purposeful
Projects Progress Through a Life Cycle to
Accomplish Goals
Projects are Unique
A Project is a Single Entity
6. Project Financing
Project finance is the funding (financing) of long-term
infrastructure, industrial projects, and public services
using a non-recourse or limited recourse financial
structure. The debt and equity used to finance the project
are paid back from the cash flow generated by the project.
Project financing is a loan structure that relies primarily on
the project's cash flow for repayment, with the project's
assets, rights, and interests held as secondary collateral.
Project finance is especially attractive to the private sector
because companies can fund major projects off-balance
sheet (OBS).
7. Activities for Project Financing
Pre-sanction Activities
Assessing the credit,
Selecting the borrower,
Preparing the project loan proposal
Sanctioning
After receiving the approval from the respective
authorities,
Sanction letter is issued in favour to the client and,
Client’s consent is taken on the terms and conditions.
Post-sanction Activities
8. Activities for Project Financing
Post-sanction Activities
After receiving client’s consent,
The necessary documentation
The disbursement of loan
Monitoring and recovery
9. Project Selection
Project selection is the evaluation of project ideas to
help decide which project has the highest priority. It's
an important part of project portfolio management
(PPM), which is a process used by project management
organizations (PMOs) and project managers to
analyze the potential return on undertaking a project.
10. Project Selection
Once project managers receive project ideas or proposals, they
often go through a process to assess and select a project that will
move forward. Typically, when project managers select a project,
they may consider the following factors:
Costs
Resources
Benefits or ROI
Time to complete the project
Risks associated with the project
11. Project Appraisal
Project appraisal means pre-investment analysis of a
proposed project to ascertain whether the project is
technically feasible, commercially viable and
financially profitable.
15. Marketing aspects
Consideration
Demand-Dupply Gap
Deterining present and future selling prospect of goods
and services
Determining comptetitive advantages to compete with
others
Product quality and cost
Market share estimation
Determination: Commercial viability
16. Technical aspects
Civil Construction
Land (quantity, position of project, ownership, viability)
Civil & building construction
Mechanical and textile
17. Financial Aspects
IRR (Internal Rate of Return)
NPV (Net Present Value)
PBP (Payback Period)
BCR (Benefit Cost Ratio)
BEP (Break Even Point) Analysis
Margin of Safety
18. Socio-economic Aspects
Economic Aspects: Consideration –
Value addition, employment generation, Savings
Contribution to GDP
Economic Rate of Return
Social Aspects: Consideration –
Norms and values
Social responsibility
Religious and cultural works
Environmental aspects: Consideration –
Wastage Disposal System
Effect on Environment and Human body
19. Disbursement
Disbursement means paying out money from a fund.
The term disbursement may be used to describe
money paid into a business' operating budget, the
delivery of a loan amount to a borrower.
An entry for a disbursement includes the date, the
payee name, the amount debited or credited, the
payment method, and the purpose of the payment.
The overall cash balance of the business is then
adjusted to account for the disbursement.
20. Documentation
After receiving the acceptance of the sanction advice by the borrower, the bank
will take registered mortgage (if any) and collect necessary charge documents.
D.P. Note
Letter of Arrangement.
Letter of lien (in case of loan against any fin. Obligation or
instruments).
Letter of Guarantee of all Directors (in case of Limited
company).
Letter of Partnership along with partnership deep in case of
partnership account.
Board resolution in case of limited company
Letter of indemnity
Insurance Policy (covering all risks).
21. Disbursement Phase by Phase
As per Approval and Sanction terms and conditions.
Proportionate Equity Subject to verification of progress
Other formalities –
Single time disbursement subject to full equity builds up
Equity/margin ensured
Terms of sanction should be complied with
Charging of securities
End use verification
Strictly following the disbursement schedule