BN3060 Project Analysis and Appraisal

The objectives of this assignment are to encourage the students to:

i)Appraise the viability of development proposals.

ii)Analyse projects using investment valuation, value management and life cycle costing techniques.

iii)Evaluate project proposals with regard to design acceptability, sustainability and environmental impact

You have been asked to give advice regarding development appraisal for the project of Construction of the Third Runway to the existing airport at Chek Lap Kok in Hong Kong. The project owner, Airport Authority has indicated that it is critical to have construction of the extension work to be started by the end of 2026 in order to cope with the increasing air traffic demand and competition, and that inconvenience to users, during the extension, should be minimized.

Based on the above criteria, you are required to produce a report for the client which should include the following:

a)Appraisal on the viability of development of the project.

b)Analyse the project using investment valuation, value management and life cycle costing techniques, where applicable.

c)Carry out a brief feasibility study which meets the client’s needs, covers potential benefits, reflects possible problems and fair evaluation of factors that would justify development of the project.

Your first task should be to:

i. identify the key tasks in order to collect the information for your report.

Ii. design a working programme to indicate critical activities for this exercise.

iii. arrange milestone dates to complete those key tasks.

The content of your report should demonstrate:

i)The assignment brief has been understood.

ii)All basic elements on development appraisal and feasibility study have been addressed.

iii)Creative development of the scenario, including any supporting assumptions, is encouraged.

iv)The assignment should be well presented in a report style format.

a) Sufficient coverage of the development appraisal exercise.  30%

b) Sufficient coverage of the feasibility study exercise  15%

c) Reasonable assumptions for the development  15%

d) Proper referencing  10%

e) Written presentation of report (layout, structure, use of language, clarity of expression)  30%