Professional Documents
Culture Documents
for Project
Preparation and
Appraisal
Saeed Ahmed Rana
ADFD/WB Project Preparation and Appraisal Workshop Abu Dhabi, April 2010
Why A Project?
I.
II.
III.
IV.
V.
Project Cycle
Project Rationale and Preparation
Borrower Roles
Donor Roles
Project Appraisal
Costing Analysis
Environmental and Social Assessments
VI. Assessing Project Quality
VII. Early Signs of Project Failure
4
Project/Lending Types
Development Projects can be original projects, pilot projects or repeater
projects
Pilot projects test the design criteria and implementation strategy of new
technologies before embarking upon a full scale investment.
Repeater projects adopt the design and practices of a successful project for the
same Project Development Objective (PDO) under similar implementation
conditions and environments.
A SWAp is a sectorwide approach that supports locally owned programs for a
particular sector in a comprehensive and coordinated manner.
SWAps promote increasing reliance on country systems and procedures and use a
common framework for planning, implementation, expenditure, and monitoring and
evaluation
Project Lending is primarily the Specific Investment type Loan (SIL). Lending is
also extended for sector investment, maintenance, financial-intermediary and
technical assistance projects.
8
Project Identification
Birth of a Project
Country Development Plans
Borrower Specific Request
Unforeseen Conditions (e.g. natural calamities)
KISS Your PDO (Keep It Short - and - Simple), concise and meaningful.
Dont try to reach the sky in one go.
PDO should not encompass higher level objectives that depend on other efforts
beyond the scope of the project.
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Statistics
M &E
Public Sector
Management
RX Budgeting
Achieving
Results on
the Ground
Country
Capacity
Building
MfDR
Measuring
and Reporting
on Results
Enabling
Environment
MDGs, Country
CAS Program
Sector/Theme
Project
Core Indicators
Quantitative
Qualitative
Senior
Management
attention
Recognition
Tools, IT
systems, RX
Platform,
CPRT
Training, KL
Resources
Borrower
Stakeholders
Potential donors
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Project Preparation
Update Project Information Document (PID)
Field visit to assess preparation progress
technical, economic, environment, social studies
Completion of feasibility studies
Discussions with probable/potential co-financiers
Prepare Project Implementation Plan (PIP)
Project components
Implementation plan
Monitoring and Evaluation (M&E) Arrangements
Prepare Project Operation Plan (POP)
Guidelines
Arrangements for effective project operation
Risk analysis and mitigation measures
Performance Indicators PI. (see next slide)
16
Specific
Measurable
Attributable
Realistic
Targeted
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Functions
19
Preparation Completed
Quality Enhancement Review (QER)
Consistency of design with approved project concept
Quality assurance of the technical aspects of the project
Establish fiduciary (Financial Management and Procurement) requirements that
need to be met by appraisal
Review safeguards needed and specify projects environmental and safeguard
classifications and the requirements to be met by appraisal.
Review project feasibility and sustainability aspects.
Propose actions to update PCN
At Preparation stage all technical economic financial institutional social
environmental M&E O&M aspects must be fully analyzed with viable options
presented
PCN review
Discussion at management Level
Follow up on PCN review and finalize PCN
Obtain managements authorization for project appraisal.
20
Project Appraisal
Project Appraisal is the process of assessing, in a
structured way, the case for proceeding with a project or
proposal. It involves comparing various options, based on
economic and financial viability, technical feasibility and
social and environmental consideration/justification
Pre-Mission Actions
Pre-Mission Actions
Critical elements of PAD are:
Country background
Sector background
Project Development Objectives (PDO) Project
Design (Tech. Institutional, Financial, Social,
Environmental, Procurement, M&E)
Project cost and financing
Project analysis (economic, financial)
Implementation arrangements (PIM, Institutional etc.)
Sustainability consideration
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Social
Environmental
Procurement arrangements
Financial and Economic Analyses
Safeguards
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Level
Doing
right
things?
Inputs:
Budgeting &
planning activities
Eg.$ to water
sector
Outputs &
Intermediate
Outcomes
(on-going)
Eg:
Water
connections
Strategy &
Program
Results (3-5
yrs)
Eg:
Improved water
access +
quality
Lasting
Impact?
Country/
Sector
Long term
Outcomes
Eg:
MDGs etc
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Post-Mission Activities
Management approval of mission findings
Convey management approval and the loan
conditionality to the government/borrower
Complete outstanding actions agreed in the aide
memoire
Determine if post appraisal mission work is
needed
Update appraisal document
Coordinate with the government/borrower
Negotiations
Board approval
Loan agreement signing
Project launch workshop
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Corrective Measures
Investigate Reasons
Procedural Issues
Lack of Political Will
Lack of Commitment
Procedural Issues
Effectiveness delay
Parliamentary Approval
Pursue with Govt, but bear with it
Lack of political will and commitment are serious matters. Donor should not ignore
the above signs and should:
Discuss with Government restructuring or rescoping the project
Suspend disbursements partially or totally and put pressure on the Government
to act
Based on non compliance of the covenants consider punitive actions including
cancellation.
Strength
Weakness
No major weakness. Presents a good model for Repeater Projects and Pilots.
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Strength
PDOs are strategically strong but not fully supported by project design
Project pursued needed policy objectives (increasing fuel price and reducing
subsidy)
Institutional strengthening e.g. IAS Fed of WUAs, quality control and agreement with
beneficiaries on water usage
Weakness
M&E design inappropriate indicators
Weak project consultants (funded by other agency with no Bank control)
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Strength
Result framework is well designed
PDO very relevant to governments Poverty Reduction Strategy Paper (PRSP)
Provides impetus to sound institutional framework
Weakness
Beneficiary participation low
Poor preparation premature Board presentation - first years design not ready
Weak risk analysis - particularly related to benefits to minorities who are the main
beneficiaries - elite capture prospects
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Yemen
Rural Energy Access Project
PDO
In pursuance of GoYs commitment to an agreed nationwide rural electrification program and the
strategy set out in PRSP, the PDOs are to:
Improve electricity access of rural population in the selected areas of Yemen in a financially
sustainable manner
Demonstrate feasibility of increasing access in the off grid areas using solar energy.
Strength
High level of borrower commitment; Institutional and legal framework in place; significant local
funding
Clear objectives relevant to sector development strategy
Achievable and monitorable objectives; satisfied consumer population is a good indicator of
desired outcome
Simple design with a low cost pilot component for sustainable solar energy use
Substantial co-financing by IDB,AFD, Germany, France ($80 m+ compared to $25 m by IDA and
$11 m by government) indicates confidence in project design
Targeted good training program
Weakness
Summing Up
PDO
Preparation
Design
Participation
Ownership
Appraisal
Result
Final Word
Thank You