of 1 PagesProject Number:

APPENDIX 1

PROJECT CLOSURE APPRAISAL TEMPLATE

ISSUED BY THE AUTHORITY ON [Insert Date]

PROJECT
CLOSURE PROJECT APPRAISAL NUMBER

Date of Issue:

Filename: 354382748 Page: 1 of 6

of 1 PagesProject Number:

of 1 Pages

Enter project title here]

Date of Issue:

Filename: 354382748 Page: 2 of 6

of 1 Pages Project Number:

Revision Record

Version Date Revision Details Author

V0.0 09/02/06 Draft Template Geoff Clarke
V0.1 29/03/06 Revised following discussions with AER Geoff Clarke/David Bailey

Date of Issue:

Filename: 354382748
of 1 Pages Project Number:

Contents

1. EXECUTIVE SUMMARY..................................................................................... 1
2. BACKGROUND.................................................................................................. 1
3. PROJECT ACHIEVEMENTS VERSUS OBJECTIVES..................................................1
4. FINANCIAL ISSUES............................................................................................ 2
5. RECOMMENDATION.......................................................................................... 2
6. AUTHORISATION............................................................................................... 3

1 EXECUTIVE SUMMARY
This document presents an appraisal of this project following its completion for submission to the necessary
approving authority within Majan Electricity Distribution Company (MJEC). As such it can also be considered
to signify completion of the project from a Regulatory viewpoint and the basis for inclusion of the associated
capital expenditure within the Regulatory Asset Base (RAB). It presents a comparison of the project capital
expenditure performance against the original project objectives and hence a measure of the capital investment
efficiency of the business. Subsequent to approval, individual Closure Project Appraisal documents should be
retained within the Capital Expenditure Reporting Framework document until the Authority indicates that it is
satisfied that the project can be removed from the dossier1.
[Enter text here and delete following guidance note ]The Executive Summary should allow the reader to gain an
overview of all the main aspects of the project without having to read the entire main document. It should
summarise the document in particular giving the key characteristics of cost, benefit and timescale.

Refer to the Pre-Investment and Intermediate Project Appraisal papers and the Capex
estimates.
State that the project is now complete.
State the final outturn Capex and the variance with the initial Capex estimate and the last
approved Capex estimate.
State whether the expected completion date has been achieved.

1
The practice of retaining closure and earlier project appraisals within such documentation is seen as
representing good business practice, in that progress and actual outturns on individual projects can be monitored
against the basis upon which the project was originally sanctioned by the business, and also as a means of
allowing subsequent audits by the Authority to be set against a sound reference framework, for example where
the outturn expenditure on a project may be significantly different from the original sanctioned level, a clear
audit trail should be evident as to the reasons behind such deviations. Examples of this would be the need to
underground a previously sanctioned overhead line scheme, the need to use GIS when air insulated equipment
was originally intended, in both cases due to inadequate route or land availability, or because poor
environmental issues are identified. In this respect it should be noted that the reasoning behind any significant
change in the project details or financial outcomes would be expected to be fully captured in an appropriate
Intermediate Project Appraisal or Closure Project Appraisal. The Closure Project Appraisal document
should be retained within the Capital Expenditure Projection Dossier until the project is formally closed off and
the Authority signifies that it no longer needs it to be included in the annual returns.

Date of Issue:

Filename: 354382748
of 1 Pages Project Number:

State whether or not there any outstanding contentious issues with customers and/or
contractors such as payment/bond issues associated with a customer connection agreement
and/or payments/guarantees associated with an EPC contract.

1. BACKGROUND
[Enter text here and delete following guidance note]

Summarise Pre-investment Project Appraisal.

Summarise Intermediate Project Appraisals.

2. PROJECT ACHIEVEMENTS VERSUS OBJECTIVES

[Enter text here and delete following guidance note]

Compare achievements with objectives giving reasons for any variance.

3. FINANCIAL ISSUES
[Enter text here and delete following guidance note]

Compare initial Capex estimate and last approved Capex with actual outturn Capex.
Confirm that all major contracts are complete.
Confirm that all assets have been commissioned onto the asset register.
Confirm any write-offs, ie assets that have been removed from the asset register as a result of
the completion of the project.

4. RECOMMENDATION
[Enter text here and delete following guidance note]

Invite the Authorising Officer to approve the closure of the project

Date of Issue:

Filename: 354382748
of 1 PagesProject Number:

5. AUTHORISATION
The following signatures2 are duly sought in line with company delegations of authority.

Projects Engineer I confirm that I have completed and checked this appraisal and I am satisfied with its
content.
Signature Date

Authorising Officer I confirm that I am satisfied with all aspects of the content and preparation of this
appraisal and confirm that assets to the value of ROX,XXX,XXX. have been added
to the asset register.
Signature Date

2
The Signatories should be in accordance with the levels of authorisation agreed with the Authority for
Electricity Regulation, Oman.

Date of Issue:

Filename: 354382748 Page: 6 of 6