24 November 2011
What is project viability report? What is the procedure to prepare it and the key points it should contain so that project must get passed?
25 November 2011
Project Viability commenced during 1995 with the objective of monitoring the short-term liquidity of municipalities, including payment levels, the position with regard to arrears and the effectiveness of the credit control (collection) function. Subsequently the project was extended to include an intervention and support process in respect of municipalities identified by means of specifically developed indicators as showing possible financial problems. Data to determine viability is collected by means of a quarterly questionnaire sent to all municipalities for instance in South Africa. Initially the completion of questionnaires was on a voluntary basis. However, during November 1997 the minister for Provincial Affairs and Constitutional Development promulgated regulations concerning financial reporting by municipalities. In brief, the regulations made it mandatory for chief executive officers of municipalities to provide, within 21 days, the Minister or an institution designated by him, with the necessary information to determine a municipality's financial situation. In certain circumstances, exemption from this requirement may be granted by the relevant MEC.