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PROJECT INFORMATION
Project Information Check List
Project Proposal
Industrial promoters seeking LNDC assistance in the form of equity participation, loan and bank guarantees etc. are requested to prepare a project proposal setting out the information described below. 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.
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Products, Process and Output
State products to be made in Lesotho or services to be provided. Briefly describe manufacturing processes.
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 (e.g. market surveys, contracts, firm orders, trade journal opinions etc.)
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.
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Site
State site area required and where in Lesotho you wish to establish.
Infrastructure
State requirements under following headings:
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Electricity in kilowatt-hours per annum, single-phase or three-phase.
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Water in litres per day.
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Telephone - number of lines.
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Telex - number of lines.
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Railway siding (if required - must be carefully justified).
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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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Buildings
State area of building required. Are there any special requirements e.g. a high roof or air-conditioning? Do you intend to erect your building or do you wish the LNDC to build it for you?
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.
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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 following table of costs:
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Buildings (if known)
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Machinery and equipment
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Pre-Operating expenses
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Vehicles
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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:
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Loans |
Equity |
Loan Guarantee |
Leased building |
Other (specify) |
Total |
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M |
M |
M |
M |
M |
M |
| LNDC |
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| Promoter |
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| Bank |
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| Other (specify) |
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| Total |
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Notes
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Bank overdraft should be included under "loans".
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The "total" column shows both the absolute amount and the percentage share of the different financiers.
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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.
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State terms of loan finance.
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If possible, provide an estimated timetable for the drawing of LNDC funds.
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Profitability
Submit project profitability statements for the new operation for each year up to and including the second year of full production.
Estimated costing supporting the figures given in profitability statements together with actual costings for similar products or services made by the promoting company should also be attached.
Notes
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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.
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The completed proposal along with copies of audited profit and loss statements and balance sheets for the last three years should be sent to:
Chief Executive
Lesotho National Development Corporation
Private Bag A96
Maseru, 100
Telephone (266) 22312012
Telefax (266) 22310038
Email: info@lndc.org.ls
Web site: www.lndc.org.ls
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