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The idea is that the first report is like a “project proposal”. The report should convince the reader (e.g., a sponsor or a grant agency) that your project makes sense and that you are familiar with the state-of-the-art, that you are able to solve your project, that your solution is well planned, and that you can predict possible difficulties and have an alternative if something goes wrong.
The shape of the report is not strictly given, however check carefully the evaluation form. The form will guide you in what the report should contain.