Projects Checklist
Industrial
promoters seeking Lesotho National Development Corporations (LNDC) assistance in
the form of equity participation, loan and factory buildings are requested to
prepare a project proposal setting out the following information:
The
LNDC's project officer will be pleased to assist in the preparation of the
proposal which should be signed by the principal promoter.
Please
include a very brief description of what the project is all about, for example
is it a new project or an expansion, for local or export markets? If
appropriate state why you chose Lesotho as an investment location?
Principals
Briefly
describe the history, growth and performance of your firm, the details of
shareholdings, names of directors, information on products manufactured or
services provided, main markets and employment, and address details.
Provide
audited profit and loss statements and balance sheets for the past three years.
If the project relates to the expansion of an existing firm in Lesotho, the
audited accounts should relate to the Lesotho company.
If no
company exists as yet, please provide details of proposed
directors/shareholders, previous business experience, whether they were
successful or not etc.
Supply
the name and address of a bank which we may approach for a reference.
Products, Process and Output
State
products to be made in Lesotho or services to be provided. Briefly describe
manufacturing processes.
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Marketing
Describe
target markets in terms of geographic area, segmentation and size
(volume/value). Please provide any references you can to assist us in verifying
the market and trends therein (such as market surveys, contracts, firm orders,
trade journal opinions)
Describe
your target marketing strategy including distribution methods and channels.
What is the proposed sales build-up strategy? State expected market shares.
Estimate marketing costs and state basis for projected sales targets.
Give an
outline promoting the company's achievements in the same or similar markets with
information on sales and market shares achieved and the marketing costs
incurred.
Who are
your main competitors and what are their products and prices? Set out a sales
plan detailing the quantity and value of each product or service to be sold in
each quarter during the first year and thereafter annually until projected full
production is reached.
Infrastructure/Sites/Buildings
Site
Buildings
Infrastructure
-
Electricity in kilowatt-hours per annum, single-phase or three-phase.
- Water in litres per day.
- Telephone - number of lines.
- Telex - number of lines.
- Railway siding (if required - must be carefully
justified).
- Housing for management.
This
information is required so that the LNDC can check the suitability of the site
proposed for the project and so that it can alert the various organisations
concerned that there will be a demand for the services listed.
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Machinery and Equipment
List the
main items of machinery and equipment, fixtures fittings and furniture,
indicating the estimated cost in each case. Include an estimate of the cost of
transportation and installation. Please advise the source of these estimates
and note that where possible, the LNDC requires three quotations to be obtained
in all cases in which it is to finance machinery and equipment purchases. Also,
show machine capacities and how they are balanced to give total production
capacity.
Raw Materials
List the
main raw materials needed, the countries from which they will be obtained, their
availability and anticipated price. Also give some indication of how the raw
materials are priced into unit production cost figures.
Management and Technical Control
State
your plans for managing and for technical control of the company. Outline the
qualifications and experience of the proposed resident key personnel (if
known). Give details of the proposed management structure and the extent to
which the Lesotho operation will be dependent on the parent company or the
promoters. Also please indicate your plans to localise supervision in due
course.
Employment
State expected employment at
the end of the first full year of operation and provide estimated dates of
additional employee requirements for this project up to full production.
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Finance
Complete
the following table of costs:
Buildings (if known) ..........................:
Machinery and equipment..................:
Pre-Operating expenses....................:
Vehicles..........................................:
Working capital................................:
Total .............................................:
Annex
schedules/lists showing the breakdown of these costs. State how you propose to
finance the project, by completing the following table:
Notes
(1)
Bank overdraft should be included under "loans".
(2)
The "total" column shows both the absolute amount and the percentage share of
the different financiers.
(3)
A loan provided under a loan guarantee should be entered only in the "loan
guarantee" column opposite the name of guarantor. The reason for this is to
clearly indicate who is ultimately responsible for the finance concerned.
(4)
State terms of loan finance.
(5)
If possible, provide an estimated timetable for the drawing of LNDC funds.
(6) The
LNDC does not finance working capital since there will be no collateral.
(7) The
loan can be provided for only new fixed assets and not second hand.
(8)
In order to qualify for the loan, the investor will be expected to contribute
40% of the total project cost while the LNDC will contribute 60%.
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Environmental Impact
Indicate
how the project will affect the environment, either socially, economically, or
politically. Each project has to carry out its own Environmental Impact
Assessment.
Profitability
Submit
project profitability statements for the new operation for each year up to and
including the 5th year of full production.
Estimated
costing supporting the figures given in profitability statements together with
actual costing for similar products or services made by the promoting company
should also be attached.
Notes:
(1) The
LNDC will use your proposal as a means of appraising the extent to which
financial and other resources should be committed to your project. You are
requested to co-operate fully with our project staff in their appraisal of the
proposal. They in turn will offer their assistance to you in preparing a
proposal and in the various other administrative tasks required to establish the
project.
(2) The
completed proposal along with copies of audited profit and loss statements and
balance sheets for the last three years should be sent to
The Chief Executive
