Guidelines for a project plan

There is no standard application form for Finnfund financing. The basis of our appraisal is our client’s project plan. We are very flexible in its format; the following check list is indicative of the details we will examine as part of our appraisal.

We encourage prospective clients to contact us early, preferably prior to developing complete project plans.

Basic information about the project

Project sponsors and partners

• Financial information (annual reports from the past 3 years)
• Contact information
• Corporate strategy and the project’s role in it
• Sponsors’ and partners’ experience and references in the sector, industry and international markets
• Roles and responsibilities of the partners

Project information

Project Overview

Markets

• Market analysis
• Competitor analysis (local/ international, comparative and competitive advantages of the project)
• Marketing strategy, including sales plans for local / export markets

Technology arrangements, infrastructure

• Construction arrangements
• Partners’ technology inputs
• Technology transfer
• Production process
• Project location, available infrastructure, logistics, environment and present use of the project location/land – communities located nearby

Raw material and component sourcing

• Intended sources of raw materials and other supplies
• Alternative sources

Environment and social impact

• Environmental and social management, policies and strategies
• Environmental and social risks of the project
• Applicable environmental regulation, permits required
• Monitoring
• Studies performed/to be performed

Organisation, management, training

• Proposed organisational and management structure
• Personnel
• Training
• Subcontracting arrangements
• Labour and HR policies and management

Project implementation

• Schedule for project implementation
• Partners’ responsibilities in implementation

Investment plan

• Estimated costs (i.e. land, buildings, machinery and equipment, transport and insurance, installation, training, working capital needs)

Financing plan

• Financing plan, sources of financing (local/international institutions, long/short-term funds)
• Proposal for Finnfund’s participation (equity and/or loan)

Financial projections

• Estimated cash flows, income statements, balance sheets for at least five years
• Estimated profitability and key financial ratios

Risk analysis

• Critical factors affecting the project (with regard to i.e. technology and production, markets and sales, personnel etc.)
• Strengths and weaknesses of the investment

Legal and contractual arrangements

• Necessary project agreements (such as supply of know-how, equipment and materials; concession agreements if needed, etc.)
• List of permits, licences, registrations required
• Legislation affecting corporate structure, financing arrangements, etc.
• Land ownership legislation/rights

Supporting documentation where available (such as (pre-)feasibility studies, market surveys, lists of equipment, or information on comparable projects)