EADB Appraisal Procedure

Information Required from Clients

Clients seeking financial services like loan finance, equity participation and asset leasing facilities are required to submit a detailed project feasibility report to the nearest EADB office. This report should include the following information:

Background Information

• Company's legal status, ownership and management.
• Business activity of the promoting company and trading history, including audited accounts of the last three years where applicable.
• Project concept.
• Product description.
• Capacity of the project activity.
• Type and source of raw material required.

Technical Aspects

• Specifications of plant and equipment required.
• Comparative analysis of sources.
• Detailed description of production or operational process.

Organization and Management

• Detailed Organizational Chart.
• Proposed management of the project including qualifications and experience.
• Project implementation schedule/plan.

Market Analysis

• Demand and supply trends of the products of the project.
• Future industrial outlook and trends.
• Market size and projected market portion.
• Marketing plan and distribution channels.
• Analysis of competition.

Financial aspects

• Estimated project costs.
• Proposed financing plan.
• Proposed sources of funding.
• Projected financial statements including proforma income, cashflow and balance sheet statements for at least the duration of the financial service to be offered by the Bank.

Risk Assessment

• Evaluate the weaknesses of the business.
• Risk associated with the nature of business.
• Contingency plans.

Environment and Gender Issues

• The client should carry out impact assessment of the project to ensure environmental soundness and sustainability. The environmental consequences should be taken into account in project design.
• The impact of the project on gender.

Loan Disbusement Procedure

On receipt of the project proposal, a decision is made on whether the project is eligible for funding or not. The client is then notified on the decision.

• Once the project is eligible for funding, a detailed appraisal is carried out.
• After the detailed appraisal, the Bank makes a decision and the client is notified accordingly.

The Bank makes disbursement upon fulfillment of the disbursement conditions by the client. Funds are disbursed as applicable to:

• The supplier of machinery and/or equipment.
• The contractor on presentation of valid certificates of completion.
• In exceptional circumstances, the BAnk may disburse the funds direct to the client's account.
• The Bank requires prospective clients to seek competitive bids from potential suppliers and, that engineering plans and specifications be drawn up independent of the suppliers.