Publications

Financial Due Diligence Methodology Note

The Financial Due Diligence Methodology Note offers a suggested approach for operationalizing the standard project preparation and loan processing requirements of the Financial Management and Analysis of Projects 2005 (the Guidelines). This note is to be read in conjunction with the Guidelines and relevant OM sections. The Guidelines, together with the methodology note should be seen as a reference guide to assist staff in conducting an appropriate degree of financial due diligence during project preparation and processing and should guide staff in determining the appropriate level of financial management safeguards required for a given project and/or executing/implementing agency.

The Note provides specific guidance in four primary aspects of FDD:

1. Financial Management Assessment
2. Project Cost Estimates and Financing Plan
3. Financial Analysis
4. Financial Evaluation

It also provides guidance on assessing disbursement auditing arrangements.

View the document [ PDF: 612kb | 32 pages ]. To read, you need Acrobat.

Contents

---