Gage University College
School of Graduate Studies
Piassa Campus
MBA Program (section 10-14)
Advanced Project Analysis and management Course
Group Assignment - Project Proposal Development (30%)
Sample Guideline followed to prepare your project proposal
Class year I, Semester III, Academic Y. 2022/23
Set by: Course Instructor: Getachew G. (DBL, Assistant Professor}
The cover page (Title page)
The cover page should be informative, free from any ambiguity and incompleteness. It contains names of
the project; places it established, name of the University and the School of Studies, the name of students
prepare the project, faculty or college, the department. Month and year are put as the last items on the
cover page.
Title: The title should be:
Clear, specific and concise as possible
Describe the content of the project accurately
Contain few words as possible
Easy to understand
Does not promise more than what is in the project
Table of Contents
All the headings or entries in content page should correspond exactly in wordings, fonts and cases with
headings as they appear in the text.
1. BACKGROUND
1.1. Profile of Investment Project
Profile of investment project should be described clearly
1.2. Brief Information On The Owners
In this session the shareholders, their skill and knowledge and their respective share holding should be
clearly stated.
Example
Table 1: Shareholders & their shares
Name of shareholder Share Registered Total Paid
Total
Then short description about profession, skill and experiences of each share holder
1.3. Description About the Project
Description about the project should be:
Persuade the reader
Define the nature and extent of the problem
1
Relate the project to the beneficiary
Explain the objective of investigation
Written based on different literature evidence
Do not exceed 1-2 type written pages’
1.4. Project Need statement/Rationale/Justification
The problem/Need statement/ rationale or situation description is a key step in grant proposal writing. It
is where you convince the funder that the issue you want to tackle is important and shows that your
organization is an expert on the issue.
In developing Rationale/Justification:
State the problem/Need using facts and numbers
Use statistics that are clear and support your argument
If possible use research and comparative statistics
Don't assume that the funder knows much about your subject area
Describe why this project is important
Describe your issue in as local context as possible or organization focus
1.5. Objectives of the Project
The project objectives should specify the goals of project, outcomes to be generated, and questions to be
answered.
Objective should be: SMART
S-Specific
M-Measurable
A-Achievable
R- Reliable
T- Time bounded
1.6. Expected Outcomes
Expected Outcomes are the results of project activities (services made available, infrastructure built,
final products, human resources trained, etc.) intended to achieve the immediate objectives.
1.7. Project Beneficiary
Here need to clearly state and identify the target group the project going to benefit:
1.8. Credit Relation
The amount of budget covered by the owner and borrowed from other should be clearly
identified and described.
Example
The company plans to cover 45% of the budget from its own source and the remaining 55% of the finance
will be covered by loans from banks. The enterprise will negotiate to the banks in order to get the loan by
using the building, machinery and equipment of the owner as a collateral.
1.9. Support Service
Financial, technical and any other support from the government, the society, NGOs and other
described briefly
1.10. Security Available For Loan Purpose
In order to secure Bank loan the project collateral agreement could be described briefly. The collateral
may be building, machinery, house plan, car and other asset:
Example
Building (storage, office in each sectors) ----------------------------------- 500,000
Machinery ,equipment, truck --------------------------------------------- 500,000
House plan -------------------------------------------------------------------- 350,000
2
3. THECHNICAL ASPECT
In technical aspects required to take in to account:
Description of the Project Area
Work schedule
Project Layout and Size
Structure and civil works
Project Activities
Production/Plant capacity
Project Inputs and Product Mix
4. MARKET STUDY
The information required in market analysis are:
Demand Analysis
Supply Analysis
Price Determination
Distribution of Channel
5. ORGANIZATION, MANAGEMENT AND MANPOWER
In this session should be briefly described and show about:
Organization and Management intended to show which entity or entities will be
responsible for the various aspects of project
Manpower required in terms of their responsibility, number and cost of getting
Organizational Structure
6. FINANCIAL ANALYSIS
Investment Costs & Source of Finance of project
Benefit of the project
Profitability ( note: determine from income statement)
Financial Position
Net Present Value
Benefit Cost Ratio
Internal Rate of Return
Payback Period
Loan Repayment Schedule
Break-even Analysis
7. ECONOMIC ANALYSIS
The same with financial analysis the only difference are:
Adjustment for direct transfer payments
Adjustment for price distortions in traded goods
Adjustment for price distortion for non-traded goods
Extend the boundary of the project to include all linkage effects and externalities for
instance environmental effects
8. SENSITIVITY ANALYSIS
Under take sensitivity analysis for major variable affecting project NPV, BCR and IRR
9. BREAK-EVEN ANALYSIS
10. RISK ANALYSIS
11. LOGICAL FRAMEWORK ANALYSIS
3
Stakeholder Analysis,
Problem Analysis
Analysis of Objectives
Analysis of Strategies
Develop Logframe, Activity Schedules and Resource Schedules
12. CROSS CUTTING ISSUES
13. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
14. ANNEXES
The detail descriptions for the financial, economic, break even analysis, sensitivity analysis, logical
framework analysis and other should be written clearly under annexes. Under this includes the detail for:
14.1. Assumptions Employed in the Projected Financial Analysis
11.1.1. Initial investment and Operating Costs
11.1.2. Revenue/benefit generating from the enterprises
11.1.3. Technical and Supportive Staff
11.1.4. Machinery, Office Equipment, Furniture and Major Equipments
14.2. Financial Analysis Projection
11.2.1. Total Investment & Operating Costs Projection
11.2.2. Income Statement Projection
11.2.3. Cash Flow Statement Projection
14.3. Economic Analysis
14.4. Break-even Analysis
14.5. Sensitivity Analysis
Sample for: Sensitivity Analysis
Sensitivity analysis
Description IRR NPV
Revenue decrease by 10% 14% 4,948,141
Revenue decrease by 20% 10% 7,926,345
Operating costs increase 19% 4,200,046
by 10%
Operating costs increase 10% 3,123,465
by 20%
Fixed costs increase by 39% 5,348,142
10%
Fixed costs increase by 32% 3,148,024
20%
12. References
NB.
Sect a sound project idea which need to be developed and financed by funding organizations
Do it in an already established assignment work group
No two group assignment title and idea are identical
Submit in hard copy (print & bind) format
Submit on or before the final exam date
