← Project Appraisal Level 1: Project Finance Foundations

Project Cost and the Financing Plan

Module 03 / 5 · 60 min

Rebuild a project's cost from its parts so nothing is missing and nothing is inflated, and check that the owners really carry at least 30% of it.

In this module you will learn to

List the eight project cost components and the evidence for each
Calculate contingency and interest during construction
Build a financing plan and test it against the 30% equity rule
Judge whether cash and in-kind contributions count as equity

Built on

Erudite Africa training module: Project Appraisal Level 1: Project Finance Foundations (October 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
NBE directives as listed in the lessons: FXD/01/2024 and NBE/INT/13/2026
Ethiopian laws as cited: Environmental Impact Assessment Proclamation No. 299/2002, Movable Property Security Right Proclamation No. 1147/2019, Insurance Business Proclamation No. 746/2012
Erudite Africa: Ethiopian context for banking training (39 topics, October 2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.