Project Appraisal, Risk Analysis and Risk Management Techniques

This book covers all methods of project appraisal, risk analysis and risk management for all stakeholders, namely project owners/equity holders, banks/ lenders, the economy and government budget. It contains NPV, IRR, BC Ratio, Payback Period and Cost-Effectiveness methods; scale analysis to select optimum size of a project; optimum time to invest in a project and to liquidate a project; effects of inflation on projects; sensitivity analysis to identify risk variables; scenario analysis to set upper and lower bound viability of a project; quantification of risks by use of Monte Carlo simulation; risk management methods; and risk sharing in PPP projects alongwith simple case exercises. This book is unique as it contains all methods as well as the information needed by project analysts for undertaking project appraisals. This will serve as a handbook for professionals in the field of project appraisal and for those who are involved in taking investment decisions and in the analysis of public policy issues.

Jarnail Singh (IAS-1974) is MPA from Harvard University and has served as Chief Secretary Manipur, Joint Secretary to the Prime Minister and Secretary in government of India. Dr D.N.S. Dhakal is MPA from Harvard University and PhD in Mineral Economics from Colorado School of Mines, USA. He has worked with the World Bank, USAID, Asian Development Bank, African Development Bank and UNDP. The authors had been part of the team of the then ‘Harvard Institute for International Development’ which conducted ’Project Investment Appraisal and Management’ programmes for international participants.