The Water Project just like any other projects was designed with a major aim of ensuring a constant supply of water in Maryland State thus solving the water scarcity problem that has prevailed for a considerable period. The success of the project is measured on the degree of itssustainability as well as the extent of the project’s continued ability to minimize water shortage problem the residents have been facing. The futureproject’s sustainability heavily relies on the mechanisms employed while designing and implementing the project. A comprehensive project forecast, in-depth financial analysis, and incorporation of economic basics in the project did enhance not only the project’s successful implementation but also its sustainability in water provision for the Maryland residents.
Forecasting Models used in water project
Project’s continued existence and its ability to solve the problem of concern depends on the relevance of the forecasting done before its implementation. Several forecasting models were used on the water project to enhance its sustainability. Firstly, the project team together with other project stakeholders carried out a cost forecasting of the project to establish how feasible the project was. In this forecast, the future cost of labor and material was determined through an analysis of trends in the two aspects. This forecast played a significant role in developing a budget that was flexible to accommodate the changing economic aspects of the project.
Secondly, demand forecasting was also done to establish the ability of the proposed water project in managing the current and future water demands within the Maryland state. Based on the demand forecast model, the current population of the area as well as trends in population growth was established. This was done with a major focus of designing a water project that would satisfactorily serve not only the current population but also the future population.
Thirdly, donor reliability forecast was done to establish the willingness of the federal government, the state and other organizations’ willingness to fund the project to its completion. Donor forecast is done by the project team to assess the degree of donors loyalty to fund the project so that corrective mechanisms can be put in place to deal with the situation in case donor withdrawal is experienced (Timina, Egov & Romanov, 2018,p.20205).The findings were of great importance as they helped the project team to have an actual budget and a flexible parallel budget that could be used in situations of donor withdrawal. The donor forecast model also helped the project team in identifying local donors who could fund the project in case the proposed donor gave inadequate funds from what they had pledged.
Lastly, the climatic forecast was used by the project team to incorporate environmental aspects in the project. Thisforecast model allows the project manager to evaluate climatic conditions and ensure that they don’t negatively affect the implementation of the project. The project managers with the help of Maryland meteorological department assessed the climatic trends within the region to establish the right time for implementing the project without weather disruptions. This forecast model helped in the development of the project schedule of executing the project.
It is vital for the project team to carry out financial analysis of the project before investing in it.Financial analysis helps inestablishing the feasibility and profitability of the project which forms the basis of project implementation (Vasil’ev, Vasil’eva & Tupko, 2017, p.45). Financial analysis was done by use of the payback period method. This method allows the project team to assess the length of time it will take for the project to generate the capital used in installing it. The projected water project cost was taken and divided by the annual cash inflow. The project team found out that the project will take 2 years to pay back the capital used. The project was therefore recommended for execution since the period was short indicating that the project was profitable.
Economic analysis concepts
Knowledge of economic concepts is essential in assessing the influence of economic forces on the success of a project. Economic analysis guides projects stakeholders in making appropriate decisions concerning a project(Vasilyev, Filimonenko, Likhacheva& Rouiga, 2017, p.386). The water project team analyzed a number of economic concepts before the execution of the project.Firstly, current and future demand were analyzed based on the ability of the water project to supply adequate water both currently and in the future. This helped in designing a project that could provide sufficient water to meet the demand. Secondly, the cost and benefits of the project were considered in measuring how feasible and profitable the project is to the residents of Maryland. Lastly, the concepts of scarcity and efficiency were also examined. The acknowledgment that the resources were scarce in supply led to efficient use of the resources with minimal unintentional wastage.
The knowledge and application of forecasting models are essential in ensuring the success of projects. Themodels help in establishing the implications of economic trends, climatic conditions and donor royalty on the success of a project. Financial analysis aids in the selection of projects that are feasible and profitable for beneficiaries. Also, economic concepts play a vital role in guiding the project team in making appropriate decisions concerning a project before its implementation.
Timina, I. A., Egov, E. N., &Romanov, A. A. (2018). Fuzzy models in forecasting time series of project activity metrics. Journal of Physics: Conference Series, 1096, 12205. Doi: 10.1088/1742- 6596/1096/1/012205
Vasil’ev, A., Vasil’eva, N., & Tupko, N. (2017). Development of a combined method for analysis of financial risks of an investment project. Technology Audit and Production Reserves, 4(4(36)), 43-49. doi:10.15587/2312-8372.2017.108527
Vasilyev, E. P., Filimonenko, I. V., Likhacheva, T. P., & Rouiga, I. R. (2017). The rationale for increasing the theoretical understanding of the basic concepts of economic theory. European Research Studies, 20(4A), 386.
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