Methodology For Formulation And Appraisal of a Project
- 1. METHODOLOGY FOR PROJECT FORMULATION AND APPRAISAL PRESENTED BY:- ROHAN GUPTA, PRIYA BANSAL, SHARAD JAIN
- 2. WHAT IS A PROJECT? A PROJECT IS A SCHEME FOR INVESTING RESOURCES WHICH CAN BE ANALYZED AND APPRAISED REASONABLY INDEPENDENTLY.
- 3. FORMULATION OF A PROJECT ! MUST BE FROM A PLAN FORMULATED AT THE APEX LEVEL. MUST ADOPT A BALANCED APPROACH – COMBINING ACCELERATED GROWTH WITH DIRECT ATTACK ON POVERTY. CONSISTS OF COMPREHENSIVE PROGRAMS AIMED AT GROWTH, PROVISION OF BASIC SERVICES AND IMPROVEMENT OF INCOME DISTRIBUTION.
- 4. WHAT DO YOU MEAN BY PROJECT CYCLE? VARIOUS STAGES OF INFORMATION GATHERING AND DECISION MAKING BETWEEN PROJECT’S INCEPTION AND COMPLETION. THESE ARE: IDENTIFICATION PREPARATION OF PROJECT BRIEF APPRAISAL TECHNICAL INSTITUTIONAL ECONOMICS FINANCIAL IMPLEMENTATION AND MONITORING EVALUATION
- 5. STEP 1 : IDENTIFICATION OF A PROJECT SHOULD BE AN INTEGRAL FUNCTION OF THE PLANNING PROCESS. PROJECT MUST MEET A ‘PRIMA FACIE’ TEST OF FEASIBILITY – THAT TECHNICAL AND INSTITUTIONAL SOLUTIONS ARE LIKELY TO BE FOUND AT COSTS COMMENSURATE WITH EXPECTED BENEFITS
- 6. STEP 2 : PREPARATION OF PROJECT BRIEF DESCRIBING ITS OBJECTIVES IDENTIFYING PRINCIPAL ISSUES ESTABLISHING TIME TABLE STUDY OF FULL RANGE OF TECHNICAL, INSTITUTIONAL, ECONOMIC AND FINANCIAL CONDITIONS, COMPARING COSTS AND BENEFITS OF THE ALTERNATIVES IDENTIFIED
- 7. STEP 3 : APPRAISAL CULMINATION OF THE PREPARATORY WORK, PROVIDES A COMPREHENSIVE REVIEW OF THE ALL ASPECTS OF THE PROJECT AND LAYS THE FOUNDATION FOR IMPLEMENTING THE PROJECT AND EVALUATING IT WHEN COMPLETED. THE FACTORS FOR WHICH APPRAISAL NEEDS TO BE CARRIED OUT ARE: TECHNICAL INSTITUTIONAL ECONOMICS FINANCIAL
- 8. STEP 4 : IMPLEMENTATION AND MONITORING IMPLEMENTATION - ORGANIZATIONAL STUDIES, TRAINING OF STAFF MONITORING IDENTIFYING AND DEALING WITH PROBLEMS THAT ARISE DURING IMPLEMENTATION GATHERING THE ACCUMULATED EXPERIENCE TO FEED BACK INTO DESIGN AND PREPARATION OF FUTURE PROJECTS AND INTO THE IMPROVEMENT OF POLICIES AND PROCEDURES.
- 9. STEP 5 : EVALUATION HELPS IN ASSESSING THE ACHIEVEMENT OF THE OBJECTIVES OF THE PROJECT. EFFECT ON THE IMPLEMENTATION OF PROJECTS ON THE COMMUNITY ASSIST THE PROCESS OF DECISION MAKING LEAD TO THE GENERATION OF SUPERIOR ALTERNATIVES.
- 10. PREPARATION OF PROJECT AND APPRAISAL - 1 Five Stages 1 – Feasibility Studies Whether the objectives of the project will be met or not? Whether the project will be successful or not before committing substantial funds to it? 2 – Detailed Studies ‘ Parameters’ for which and within which, the Project will be designed. Research and Investigations required to understand the problems and opportunities involved, both existing and projected.
- 11. PREPARATION OF PROJECT AND APPRAISAL - 2 3 – Options for Development Advantages and Disadvantages of the Options identified are assessed and preferred group of options selected The needs and resources of the people who will live in the project area should form the basic criteria against which the options should be measured. Feasible alternatives can be presented for political discussion. 4 – Detailed Development Proposals Should be planned in phases Detailed designs for later phases should be left until they are about to be implemented. Will enable to incorporate any changes in demand and build on the experience from the first phase of development. Development of physical design, financial and administrative aspects in detail.
- 12. PREPARATION OF PROJECT AND APPRAISAL - 3 5 – Implementation First Phase to be implemented before detailed design is carried out for all stages of a project.
- 13. EXAMPLE - PROJECT FORMULATION AND APPRAISAL FOR A GROUP HOUSING STAGE 1: FEASIBILITY STUDIES a) Identify the target population and its housing needs Identify economic characteristics Identifying household characteristics Identifying household demand b) Outline assessment and selection of project site Assessing the site availability Initial evaluation of site location Identifying site area and shape Identifying existing land tenure Identifying site boundaries Initial assessment of site topography and landscape Initial assessment of ground conditions Identifying pollution problems
- 14. STAGE 1: FEASIBILITY STUDIES c) Assessing initial site development options Initial assessment of housing layout Initial assessment of plot development Initial assessment of commerce and industry Initial assessment of requirements for public facilities and recreation Identifying other land uses Initial assessment of circulation and transportation Initial assessment of requirements for utilities d) Institutional and Financial Framework Assess the capacity of the institutional framework Identifying the financial framework
- 15. STAGE 2: DETAILED STUDIES a) Survey of the Target Population and its Housing Needs Economic characteristics of households Household characteristics Household attitudes to their locality Household attitudes plot characteristics Relationship between households and their dwellings Potential for community involvement Nature of housing demand b) Detailed analysis of project site Site location Site area and shape Land tenure Site boundaries Site topography and vegetation Ground conditions Local climate
- 16. STAGE 2: DETAILED STUDIES c) Survey and analysis of existing site development Existing housing layouts and densities Existing plot sizes and shapes Existing buildings Public facilities and recreation provision Commerce and industry Other existing land uses Circulation and transportation Existing utilities d) Institutional and Financial Framework Institutional framework Financial framework Assessing the ability to pay
- 17. STAGE 3: DEVELOPING PROJECT OPTIONS a)Formulating site development options Housing layout and density Plot sizes and shapes Building Commerce and Industry Public facilities and recreation Incorporation and transportation Utilities b) Institutional and Financial Framework Selecting the institutional framework Land tenure Developing financial options
- 18. STAGE 4: DETAILED SITE DEVELOPMENT a)Designing site development Housing layouts Housing: building Commerce and Industry Public facilities and recreatioin Road Layouts Utilities b) Institutional and Financial Framework Institutional framework Establishment of a new implimenting agency land tenure conditions Qualifications of applicants Compensation Exemptions from regulations
- 19. STAGE 4: DETAILED SITE DEVELOPMENT Financial Framework Refinement of earlier work done Cash flow predictions Phasing To be based on effective demand Availability of capital and technical factors outside the site STAGE 5: IMPLEMENTATION Monitoring Evaluation