Monitoring the progress of the project, Monitoring the effectiveness of the investment project - Project finance and analysis

Monitoring the progress of the project

Monitoring the progress of project implementation is based on international standards for project management, related software and is based on monitoring the implementation of the project implementation plan.

Monitoring of project implementation includes the following:

• Development of a calendar-network schedule (schedule) for the creation of investment project objects and explanations to it;

• the organization of control over the purpose of payments, the observance of terms, stages and cost parameters, as well as the actual amount of work performed and the realized costs at all stages of the project;

• Analysis of identified deviations from the project implementation plan, including an assessment of their impact on the project timeframe and budget;

• Development (on the basis of the analysis of deviations) of proposals for activities aimed at the implementation of the investment project in the planned time frame and with an established (agreed with the bank) budget;

• forecasting the deadlines for the completion of the project and the total costs;

• implementation of procedures for monitoring the timely implementation of the terms of loan agreements, including their entry into force;

• monitoring the performance of additional obligations (organization and control over the performance by borrowers/pledgers/guarantors of additional terms and conditions established by credit and security agreements and related to the implementation of the investment stage of projects);

• organization of examination of the project budget and verification of the compliance of the project cost parameters with the current state of the construction market, materials and process equipment

• Organization of operational supervision of technical and volume-cost indicators of the project, analysis of reporting technical documentation;

• Selection of companies for technical supervision;

• the organization and conduct of inspections of the project sites under construction/reconstruction, including inspections carried out by the supervisory companies;

• analysis of industrial reports of construction auditors, supervisory companies;

• Harmonization of types of risks in the insurance of construction works.

The automation of the information exchange between the executing companies and their financing banks and other providers of financial resources based on software products of project management (such as Primavera, Microsoft, etc.) remains the most important condition for effective monitoring of the progress of project implementation and achievement of planned indicators for the project and project budget. Project, etc.).

Monitoring the effectiveness of the investment project

Monitoring the effectiveness of the investment project includes:

• Monitoring the achievement by the project company of the planned (production) performance indicators (sales volume, including for export, return on assets and return on equity, EBITDA, etc.);

• Monitoring of the achievement of the planned final economic performance indicators for the project executor (increase in the market value of the company or increase in the market value of the share capital of the company for the reporting period);

• Monitoring of the achievement of the planned final social and economic performance indicators for different groups of external consumers of the project results (number of new jobs, growth of household incomes, growth of tax revenues to budgets of different levels, etc.)

• Monitoring the achievement of the planned final regional/sectoral socio-economic performance indicators (for example, changing the level of employment, exceeding the average salary in the region, increasing labor productivity, etc.);

• Monitoring of efficiency (profitability) of shareholders' investments in the capital of the project company.

Comparison of actual and planned indicators of the economic, social and ecological efficiency of the project in the business plan of the project characterizes the effectiveness of the activities of the management of the project company and allows to build incentive systems for employees of the project company on the basis of performance analysis.

Monitoring the change in the market value of the share capital of the project company allows us to evaluate the profitability of the shareholders' investments in the authorized capital of the project company and make an informed decision on the effective withdrawal from the project.

The most important summary information on the results of monitoring the implementation of the project, financial monitoring and performance monitoring is summarized in the consolidated status and status report of the projects. Access to information about the current status of projects is provided in real time through the use of specialized automated information systems.

Summary report contains:

• consolidation of all information on the current status of the project, including information on the status of performance of its technical indicators, fulfillment of obligations of counterparties under loan-security agreements, information on the current financial status and forecast for the implementation of the project financial plan;

• information on the existence of problems, the formulation of proposals for the adoption by the authorized management body of the bank of decisions to eliminate identified problems, the application of sanctions, the early announcement of urgent debts to payment.

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