Economic Analysis of Projects

Overview:

Introduction:

This training program provides a comprehensive framework for assessing the economic viability and impact of various projects. It equips participants with analytical skills to evaluate costs, benefits, and the overall economic feasibility of projects, supporting data-driven decision-making in project planning and evaluation.

Program Objectives:

By the end of this program, participants will be able to:

• Apply economic analysis concepts to evaluate project feasibility.

• Use quantitative methods to assess project costs and benefits.

• Perform sensitivity analysis to predict project resilience under different scenarios.

• Integrate social, environmental, and economic factors into project assessments.

• Present economic analysis findings to inform strategic decisions.

Targeted Audience:

• Project Managers and Coordinators.

• Financial Analysts and Economists.

• Development and Strategic Planning Managers.

• Policy Advisors and Decision-Makers

• Consultants in Economic and Financial Analysis.

Program Outline:

Unit 1:

Fundamentals of Economic Analysis in Project Evaluation:

• Introduction to economic analysis and its role in project planning.

• Differentiating between financial and economic analysis of projects.

• Key concepts: opportunity cost, discounting, and time value of money.

• Identifying and categorizing costs and benefits in project evaluation.

Unit 2:

Cost-Benefit Analysis (CBA) Techniques:

• Overview of the cost-benefit analysis framework.

• Steps to identify, quantify, and monetize costs and benefits.

• Techniques for calculating net present value (NPV) and internal rate of return (IRR).

• Understanding and applying the benefit-cost ratio (BCR).

• Analyzing CBA results for project selection and prioritization.

Unit 3:

Sensitivity and Risk Analysis in Project Economics

• Introduction to sensitivity analysis and its importance in project evaluation.

• Identifying key variables and testing assumptions.

• Scenario analysis: best-case, worst-case, and base-case scenarios.

• Quantitative techniques for risk assessment in project economics.

• Tools for interpreting risk and uncertainty in economic analysis.

Unit 4:

Social and Environmental Considerations in Economic Analysis

• Incorporating social and environmental costs and benefits into project assessments.

• Understanding the impact of externalities and intangible benefits.

• Techniques for valuing non-market impacts (e.g., social value, environmental preservation).

• The role of cost-effectiveness analysis in social projects.

• Analyzing social return on investment (SROI) for community-based projects.

Unit 5:

Reporting and Communicating Economic Analysis Findings

• How to structure a clear and persuasive economic analysis report.

• Visualizing data and results for effective communication.

• Tailoring presentations for different stakeholders and decision-makers.

• Summarizing economic analysis findings to inform strategic decisions.