Application checklist for non-financial sectors

This checklist is designed to serve as a guide for the preparation of an application to the Private Sector Department for financing of a project. It indicates the type of information that should be provided by the applicant.

General Information

  • Give the name of potential client, the name of project and its exact location.
  • Describe the proposed or existing company, its capital structure, land ownership details, nature of major activities, sponsors, history, management, audited financial statements for past five years, provide bank references, etc.
  • Project description and rationale.
  • Review of the sector. Describe how the project fits within country’s development objectives.


  • Describe the market for the product or service; give production and sales data including imports and exports.
  • Provide forecasts and justification.
  • Describe marketing channels, sales arrangements, usual commercial arrangements, competition (both domestic and foreign), past and current market trends and developments.
  • Provide tariff and non-tariff barriers.
  • Provide price structures, price controls, subsidies, rebates, import regulations, Government involvement, etc.

Technical Aspects

  • Detailed description of technical, construction or other aspects of putting together the project.
  • Describe envisaged and/or existing key contractual arrangements.
  • Technical process. Basis for its selection, suitability, relative costs, describe processes, rated capacity and anticipated output.

Raw Materials and Procurement

  • Raw materials needed, sources, order time, stability of supply, concessions, import licenses, supply contracts. Likelihood of cost increases.

Infrastructure and Transportation

  • Adequacy of power, communication, water and other utilities and transportation facilities. Costs of such services. Possible installation delays. Possible port delays.

Environmental Aspects

  • Detailed description of waste disposal systems, how the project affects the physical and social environment and what project sponsors are doing to mitigate these effects. Does the project require resettlement of people? Who will be responsible for it?

Organization and Management

  • Describe the structure of the Board and Management and key operational units.
  • How is the project construction and supervision organized? How are costs to be determined and negotiated? Construction Schedule.
  • Provide details of technical assistance or management contracts or other agreements. Provide information on competence of those involved.
  • Provide details on availability and costs of appropriately skilled workers, as well as information on labour laws, union organizations, ease of work force reduction and so forth.

Government Role, Taxation, Regulation, Insurance, Special Incentives

  • Indicate if the Government has any direct or indirect role; the licenses, permits, certificates required and the current status.
  • Indicate if there are any investment incentives or privileges accorded to the project.
  • Describe applicable taxes, provisions for repatriation of capital, dividends, royalties, foreign exchange regulations, etc.
  • Provide details on all insurance policies related to the company, the project, the management and the Board.

Project Investment Cost and Financing Plan

  • Provide detailed capital cost estimates, including land, buildings, earthworks, machinery, equipment, licensing, permanent working capital, interest during construction, contingencies; allocate costs among local and foreign currency requirements.
  • Provide financing plan, including details of share-holding structure, various sources of loan funds and loan conditions.
  • Proposed financing from the African Development Bank and envisaged purpose and use of Bank proceeds. Anticipated disbursement schedule and rationale.

Financial and Economic Evaluation

  • Projections of output, revenues, costs and profits at least for the duration of the loan. Cost items should include raw material, labour, power and other utilities, repair and maintenance, administration expenses, sales expenses, depreciation, taxes, etc. Provide pro-forma financial statements (i.e. profit and loss, balance sheet and cash flow for 10 years along with detailed assumptions).
  • Provide a complete financial evaluation of the project including computation of financial internal rate of return. If the application concerns an expansion project, provide comparisons of forecasts with and without the project.
  • Provide an economic evaluation with economic rate of return and the assumptions used in its calculation.

Risks and Safeguards

  • Discuss realistically the risks involved in carrying out the project, including climatic considerations, infrastructure, Government, labour, supplier, market and other factors. Then review how the project sponsors intend to guard against the risks.


Provide copies of audited financial statements for past five years (if available), copies of relevant legal documents (e.g. memorandum of incorporation and articles of association), maps, lists of affiliated companies, information on individual shareholders and managers, detailed process, equipment or product descriptions, market statistics, financial schedules, etc.