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The Importance Of International Project Funding

By Charles Williams


There are many requirements which help to ensure that programs are executed as planned. These include human, financial and technological resources which are the backbone of success. Most projects lack adequate finances to facilitate their operations. This is a major threat which may thwart the achievement of goals. This prompts them to seek International Project Funding to salvage such dire situation. The financiers may be governmental, nongovernmental and other interested groups. They tend to have confidence in the success of such noble projects.

There are stringent conditions imposed on the use of funding advanced by donors. This forms as a basis of availing further financial support at different stages of the venture. The principal investigators to commit funds to specific budget items as depicted in the proposal. If they feel that contingency heads should be exploited thus they can seek permission from the funding agencies. This will avoid push and pull which may compel the donor to pull away funds thus stagnating operations.

Depending on the scale of such a project, funding can either be internal or external. The stakeholders will determine the suitability of every available option before taking the necessary steps to require. When the projects are small and run for a short period of time then internal sources are deemed fit and vice versa. This is where reserves allocated to either operational of capital expenditure are exploited to run other operations which lack adequate funds.

External sources of funding are embattling by a myriad of challenges. These spring from the nature of donors and the red tapes entailed. This frustrates swift implementation of the venture thus hamper the potentiality of the project. Some challenges include hefty interest rates and erratic currency fluctuations which are highly adverse.

Some project may at the time be complex and huge. This makes the equipment and capacity owners limited thus necessitating that a contracting agency should be engaged. This is because they possess the ideal infrastructure to perform most of the operation. In such situations, regular valuation of all stage items should be done to validate all payments made. This is a financial control which intends to avoid pillage of resources which may cause the demise of such programmes.

The release of funds by funding authority tend to delay. This is a major challenge to the execution of such a program. This propels the management to seek credit supplies to enhance smooth workflow which will help in the achievement of objectives. This, however, depends on the willingness of lenders to cooperate. They will later be settled when the funds are availed.

In bid of promoting economic empowerment, most governments have established venture partnership. This is a framework where the programm owners cooperation with the government to power most operations. This partnership grants government worth stake in such activities. This includes the control, evaluation, and execution of the program. This has been a bedrock to the improvement of many living Standards.

To ensure that minimal resources channeled to the execution of a venture depends on the financial knowledge of such managers. This will help to ensure that the optimal allocation of resources is attained. This will them prevent unprecedented shortages which tend to curtail the achievement of goals. This knowledge is obtained through relevant training and exposure to relevant tasks.




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