Financing for Education Projects

We are happy to discuss project proposals informally and advise on next steps. As a minimum requirement for applying for financing, we require a written project plan. Information should include the categories set out below.

1. Executive Summary

2. National/Local Education Sector and Target Market. Can the market absorb the services to be provided by the project?

Regulatory framework
Analysis of the sector
Demand: market segments, size, growth, and projections
Supply: key players, competitors, market positions, differentials, prices, quality of services
Potential changes in the sector (regulation, competition, etc.)
Potential changes in the market (growing unemployment, changes in demand profile, etc.)

3. The Company, Sponsors, and Management. Who owns, controls, and runs the company?

History
Shareholders
Organizational chart
Management team
Partners/alliance – local and international
Current operations

4. Financial Performance. What is the sponsor’s financial history?

Revenues, main service lines
Variable cost structure, main elements
Fixed cost structure, main elements
Capital structure and cost
Audited financial statements for the past three years in US dollars

5. Strategic Plan. Where the company wants to be in 10 years and how it plans to get there?

New strategy and goals (target markets, customers, cost reduction programs, repositioning, etc.)
Company strengths
Company weaknesses

6. The Project. How will the project help fulfill the goals outlined in the strategic plan?

Goal and strategic fit
Investments (description and cost)
Specialties and services proposed
Links with local educational community

7. Project Financing Plan

Proposed debt/equity ratio
Sources of financing
What is required from IFC
Security package

8. Activity Projections

Student numbers
Student profile
Recruitment strategies
Enrollment and tuition fees
Management and faculty
Academic programs

9. Financial Projections. What is the project’s expected financial performance and impact on the company?

Income statement
Balance sheet
Sources and uses
Project’s internal rate of return

10. Risks and Issues. Are there any other issues that can affect the company or the project?

Non-profit or for-profit status
Opportunities and threats
Project strengths and weaknesses

General guidance on applying for support from IFC may be viewed at: How to Apply for Financing.