PROJECT APPROACH TO DEVELOPMENT PLANNING

PROJECT APPROACH TO DEVELOPMENT PLANNING

Need for Project Approach:

1. Decentralization of planning process
2. Spatial integration of economic activity
3. Benefiting the needy directly

The three taken together means-

“Development of Individual, Area and Nation simultaneously – hence linking national objectives and local activities based on knowledge of local resources, problems and needs”

Why Decentralisation

1. Eradication of Poverty
2. Removal of Unemployment
3. Balanced Regional Development

Decentralisation can be viewed from two angles-

                      I.    Planning at local level keeping local needs in view, and

                    II.    Desegregation of national development programmes/activities into smaller activities (Projects) and planning for each activity (project) at local level.

Such an approach to decentralized planning starts with Pre-planning activity and end with the evaluation of the project.

Pre-planning Activity

          I.    Evaluation of socioeconomic situation in the area.  This is known problem analysis and need identification or need-gap analysis.

        II.    Evaluation and appraisal of existing plans/schemes – survey of ongoing schemes, their performance and shortcomings.

       III.    Assessment of resource potential (including institutional factors) – necessary for project identification.

NEED – IDENTIFICATION OR PROBLEM ANALYSIS

In order to identify needs which should get priority in a development plan, following aspects are to be considered;

1. What is the existing level of socioeconomic development of the area in comparison to larger area around it (Regional disparities influencing the perceived needs)
2. What is the existing structure of local socio-economic system (income disparities between different sections of the rural society helping in conceptualization of needs); and
3. What are the (actual) needs of the people as well as of area?

The devices and methods which could be used to analyse the three are summed up here:

1. Indicator Method
2. Location Quotient
3. Coefficient of Specialisation
4. Mix and Share Analysis
5. Economic Base Methods

B.CONCEPT OF PROJECT

“(Plan) project is technically pre-determined set of interrelated activities involving (as far as possible) the most effective use of given human, financial and technological resources over a given period of time to achieve some pre-determined objective(s), and which in association with other developmental projects result into certain pre-determined objective situation(s)”

ESSENTIAL FEATURES:

1. Set of inter-related activities
2. activities are phased over time
3. activities entail use of human, material, financial and technological resources
4. these activities are goal oriented
5. the outcome of these activities contribute directly and along with the activities other plan projects to the sustenance and growth of economy (level defined)
6. the outcome of activities, the use and allocation of resources, the time span the objectives and relationship with other project – all are pre-determined.

PROJECT IDENTIFICATION

            Project identification is concerned with (a) collection, (b) compilation, (c) analysis of data for eventful purpose of locating possible opportunities for development projects.

1. Felt Needs
2. Identified problems
3. Past experience or the results obtained from earlier projects; and
4. Local resource potential to sustain and support the projects or developmental activities in the area

The methods of analyzing the first two aspects have already been discussed in the proceeding sections.  Analysis for the third aspect start with quantitative and qualitative assessment of all available resources in the area and level of their utilization at present.  This could be done through descriptive analysis method.  Resource potential and utilization analysis done for all sectors would reveal that what are the areas/activities where more attention is needed and what kind of projects should be selected to narrow down the gap between available/achievable potential and present land utilization to enhance the production.

Resource analysis can also help in identifying the areas of activities or prospects which could be directly projected towards the weaker sections who do not possesses accessibility to resources or suffer from local competition.

PROJECT FORMULATION

A description of the Project

              i.        Defining the objectives

            ii.        Location and size – (a) Area bound; (b) Point bound

           iii.        Technical aspects/Backward and forward linkages

           iv.        Market potential

            v.        Strategy

           vi.        Cost considerations

          vii.        Financial procedures

        viii.        Organization and management

           ix.        Project administration

            x.        Project authority

           xi.        Implementation

          xii.        Monitoring and Evaluation

FEASIBILITY STUDY

Once the project has been identified, it is subjected to various tests:

1. What are the unique advantages of the area – for the project;
2. What sources of raw materials/inputs are available locally
3. Market potentials
4. What new technologies can be applied
5. Minimum and maximum time for completion
6. Specific infrastructure required
7. Organizational structure of the implementing body

DECISION CRITERIA

Before appraising the project from different dimensions of feasibility, a sound decision criterion has to be fixed for this purpose besides the traditional feasibility analysis:

a)    Employment potential criteria – K/L ratio of projects

b)   Productive capital ratio – VA/C VA is the sum of salaries, rent interest and profit generated during a given time (say a year)

c)    Higher income level criteria

d)   Foreign exchange criteria

e)    Distributive scheme criteria

FEASIBILITY ANALYSIS

Technical                  Economic                  Financial                   Social        Environmental

Feasibility                  Viability                      Analysis                     Desirability    Compatibility

After the results of feasibility analysis are available project is appraisal is followed by formulation of final project and drawing of activity chart.

PREPARE THE WORK PLAN

After feasibility analysis has been done, the representative working group should concentrate on drawing a simple and  concrete work plan to get the project started: the work plan with reference to any project should contain-

1. List of all the activities to be carried out in order to implement the project
2. Name(s) of the person(s) responsible for each activity of the project
3. Stating and specifying the beginning point and ending point of each activity with time schedule
4. Indicating the means by which activities would be carried out.

PROJECT NEGOTIATION AND IMPLEMENTATION

Once the project is prepared the next step is negotiation for sponsorship.  Having finalized the sponsorship, project is implemented.

STEPS FOR PROJECT PLANNING

The above description of preplanning activity to project implementation and successful culmination involves twelve steps.

STEP I : DEFINE THE SPECIFIC OBJECTIVES

PROJECT OBJECTIVES ARE TO BE DEFINED PROPERLY AND SPECIFICALLY ENUMERATING THE TARGET SECTOR AND TARGET GROUP

STEP II : SELECTION OF THE AREA FOR THE PROJECT

AREA OF THE PROJECT SHOULD BE DEFINED CLEARLY WHERE THE PROJECT IS ACTUALLY TO BE IMJPLEMENTED IN TERMS OF FOLLOWING.

1. Cluster of villages or CD Block (in case it is an area development programme)
2. Target Group
3. Water resources and catchments area (in case of an irrigation of fishery development project)
4. Area or block of land (in case of farm or forestry or plantation or horticulture projects etc.

SETP III : JUSTITICATION AREA SELECTION

Proper justification or reasons for selecting the particular area(s) for the project should be enumerated in terms of following.

      i.        People of the area and the area itself needs the programme

    ii.        The area has the potentials for the programme

   iii.        People of the area exhibit the responsiveness to the suggestion of the project and have participative attitude.

   iv.        Sponsoring organization has the commitment to work in the area.

    v.        Sponsoring organization has the requisite resources.

SETP IV : IDENTIFICATION OF BENEFICIARY

Beneficiaries of the project should be clearly defined in terms of categories (whether small farmers/marginal farmers etc. or SC/ST category/ artisans/ craftsmen/ women/ literate etc.) and in terms of coverage (whether the all the people inhabiting the project area/class of coverage or only part).

SETP V : REASONS FOR SELECTING THE BENEFICIARIES

Define the reasons for selecting the beneficiaries in terms of following –

      i.        Their need for the proposed programme

    ii.        Their potential to absorb the proposed programme

   iii.        The response to the suggestion to take up the programme

   iv.        Organizations commitment and capacity to work for them and with them.

SETP VI : SURVEY OF THE AREA

A COMPRENEHSIVE SURVEY OF THE AREA SHOULD BE CONDUCTED TO GET THE FOLLOWING DETAILS

1.  Resources and Development Activities comprising

a.    Geographical resources

b.    Demographic profile

c.    Land use

d.    Soil characteristics

e.    Agriculture

f.     Irrigation

g.    Fisheries

h.    Industries

2          Physical and Organizational Infrastructure

a)    Roads

b)    Transport

c)    Electricity

d)    Banking

e)    Drinking water

f)     Marketing storage and water supply

g)    Cooperation

h)   Rural engineering services

3.         Social Infrastr5ucture and services

a)    Education

b)    Health and medical services

c)    Social welfare activities

SETP VII SURVEY OF BENEFICIARY

The rationale of the project should be explained in following terms –

1.    How is it consonance with the Aims (Step I)

2.    How is it based on assessment of the needs of the area (Step II)?

3.    How is it based on the assessment of the needs of the people (Step V)?

4.    Is it within the capacity of the organization to implement the project? (Step III V, IX)

STEP IX SPONSORING ORGANIZATION

Give details as below:-

1.    Name

2.    Legal Status

3.    The data from which it is functioning

4.    Location

5.    Area of operation

6.    Number of members

7.    Composition and terms of the present Executive Committee

8.    Composition and terms of the last three Executive Committees

9.    On which dates the last five Annual General Body Meeting were held

10. Year for which latest audited accounts have been complied

11. Year(s) for which audit reports are due

12. Permanent assets of the organization

13. Present cash holdings of the organization

14. Staff with qualifications

15. Programmes under execution (give details regarding name of the programme, objectives, data of sanction, duration, cost, source of finance area of implementation and beneficiaries programme content and benefits expected)

16. Programmes completed during the last three years (give details regarding name of the programme, objectives, date of sanction, duration, cost, source of finance, area of implementation, beneficiaries programme content and benefits expected)

17. Capacity of the organization to implement the project.

SETP X OUTLINE OF THE PROJECT

Design the project by feeding materials on the following lines:-

1.    Title of the project

2.    Location

3.    Implementing agency

4.    Objectives of the project

5.    Expected data of commencement

6.    Expected date of termination

7.    Duration of the project

8.    Staff, land, building, machinery, equipment and other resources (Specify) required for the project

9.    How many of the above mentioned human, physical, technical and other resources are available with the organization?

10. How many of the above mentioned resources are expected to be contributed by beneficiaries?

11. How many of the above mentioned resources would be specifically procured for the project

12. Time schedule for procuring such resources

13. Cost of procurement for maintaining such resources

14. Training needs of project functionaries

15. Training needs of beneficiaries

16. Financial resources needed for the project

17. Source-wise availability of financial resources needed for the project

18. Physical plan for implementing the project

19. Activity schedule for implementing the project

20. Results envisaged in the project

21. Economics of the project

22. Continuation of the programme envisaged in the project after the duration of the project.

STEP XI ADMINISTRATIVE ARRANGEMENTS FOR IMPLEMENTING THE PROJECT:

Structure institutional arrangement for proper implementation of the project by defining the following:

1.    Responsibilities of the sponsoring organization

2.    Manner in which the responsibilities of the sponsoring organisatiojn will be discharged

3.    Who is the Chief Co-ordinator?

4.    His/her responsibility

5.    Responsibilities of the staff of the project

6.    Are there Administrative committees proposed at State level, district level and project level proposed?

7.    If so, responsibilities of such committees

8.    Schedule of filing of physical progress

9.    Schedule of filing of financial programme reports

10. Schedule of filing of audited statement of accounts

11. Schedule of filing of utilization certificates

12. Internal reviews and evaluation proposed

13. Arrangements for keeping and operating funds

STEP XII MONITORING:

Design the monitoring system by listing out the elements of the project in two column, first of which indicating assumptions and second of which actual outcome.  The first column will be filled up at the time of the project preparation which the second column will be filed up from time to time, in the course of implementation of the project.  The design of the monitoring format will be as below:

1.    Data by which survey of area was to be done and was actually done (Step VI)

2.    Data by which survey of beneficiaries was to be done and was actually done (Step VIII)

3.    Staff, land, building, machinery, equi9pment and other resources stated to be available and actually available (Step X)

4.    Staff, land, building, machinery, equipment and other resources (specify) envisaged to be contributed by the beneficiaries and actually so contributed (Step X)

5.    Schedule according to which staff, land building, machinery, equipment and other resources (specify) envisaged to be specially procured for the project and actually procured (Step X)

6.    Projected and actual cost of specially procured staff, land, building machinery, equipment and other resources (specify) for the project.

7.    Envisaged and actual training of the project functionaries (Step  X)

8.    Envisaged and actual training of project beneficiaries (Step X)

9.    Projected and actually generated financial resources (Step X)

10. Envisaged activity schedule for implementing the project and actual implementation (Step X)

11. Schedules of filling physical progress, financial progress and audited utilization reports and actual compliance (Step XI).

12. Envisaged and actual internal reviews/evaluations (Step XI)

MONITORING AND EVALUATION OF PROJECTS

MONITORING

Project Monitoring is a method of over seeing a project and examine whether:

1.    The activities are going to a given time schedule, ahead or behind the schedule

2.    The results, such as achievement of targets, benefits expected to be generated are realized

3.    The co-ordination between various department involved in the project is good; and

4.    The participation of the community is sufficiently strong to sustain the efforts made through the project

Thus monitoring is essentially a managerial decision making and control process.

Two factors involved in monitoring are:

a.    Collection of information on project formulation and

b.    The decision whether any modification to the project should be made

The two factors taken together; the effective monitoring of the project activities and helps deciding the following:

a)    The project schedule can be retained in its original form or necessary revisions need to be made to complete the project within the stipulated time;

b)    Any resource – reallocation is to be made so that overall objectives can be achieved; and

c)    Any additional support or infrastructure is to be created in order to sustain the efforts made.

THREE ASPECFTS OF MONITORING:

A.   Physical progress

B.   Financial Progress

C.   Economic progress –especially necessary for repayments

Normally, the progress reports of most of the projects prepared under various Government programmes meant for poverty alleviation are based on (A) and (B) only

The effectiveness of monitoring and control depends on the frequency and accuracy of data collection.  The frequency of data collection may be – yearly, six monthly, or even more frequently.  Once this decision has been taken, it is necessary to determine following:

          I.    The physical aspects of the project which were planned to take place during the period of monitoring.

        II.    Whether the physical performance was on schedule during the period

       III.    Reasons for variations between planned and actual physical performance

Same steps may be applied to financial and economic progress.  Successful answer to these questions need following requirements:

                      i.        A speedy and accurate system for collecting information

                    ii.        A system to ensure that data collected are used by project directors/managers and decision makers to adjust the project

IMPLICATIONS

The process of monitoring has three important implications:

      i.        It implies that operations and programmed so that performance could be assessed against what has been planned.

    ii.        Means and standards are fixed against which performance could be measured.  This requires setting up of Indicators  of completion of each activity.

   iii.        Suitable reporting system are designed for appraisal.

EVALUATION

“A retrospective analysis of experience to see if we achieved out stated objectives and to determine how and why the objectives are or were not achieved”.

Three concepts of evaluation:

1.    Ex-ante evaluation for assessing development needs and potentials of the target sectors, target and target area to determine the feasibility or project/programme.

2.    no-going or concurrent evaluation to determine whether the project has been executed accordingly to the guidelines and early detection of deficiencies to take immediate remedial measures.

3.    Expose evaluation the assess effects and impacts, with the aim of obtaining information on (a) the effectiveness of the programme in achieving its stated objectives, (b) its contribution to achievement of sectoral target group, target area, and national goals and (c) self-sustaining character of changes resulting from the programme/project.

OBJECTIVES OF EVALUATION

          I.    Measures of programmes in both quantitative and qualitative terms

        II.    Assessment of efficiency/deficiency of the process of conversion of inputs into output-effect-impact and efficiency

       III.    Identification of inducting and reducing factors

      IV.    Provision of feedback to refine the policy/strategy/objective/operational process

THE RESULTS ARE CLASSIFIED IN THREE CATEGORIES

          I.    Output – physical targets

        II.    Effects – direct and immediate consequences of the programme

       III.    Impact – on standard living/inter-personal and inter-regional disparities

TYPE OF EVALUATION

A.   Evaluation of need

B.   Evaluation of process

a.    Whether beneficiary represents the target group

b.    Critical inputs delivery time-schedule

C.   Critical inputs delivery time schedule

a.    Whether beneficiary has realized the expected level of income

b.    Whether beneficiary is better off compared to non-beneficiary

c.    To what extent the project has been responsible for observed benefits

d.    Changes noticed in behavioral dimensions of beneficiary

D.   Evaluation of Efficiency: To see cost effectiveness and project effectiveness

E.   Purpose oriented Evaluation

F.    Formative evaluation

G.   Summative evaluation

PRE-REQUISITES OF EVALUATION

          I.    Clearly defined objectives

        II.    Indicators measuring and representing those objectives

       III.    Above two indicates the input-output nature of project activity.  Another pre-requisite, which may be fulfilled only at above two is – there should be pre-conceived and desired effect of the project, and

      IV.    The impact of the project.  Lastly, but most important –

       V.    A system of information – selection of method of data collection and analysis

CRITERIA FOR EVALUATION

          I.    Effort – total efforts put into project

        II.    Performance

       III.    Adequacy

      IV.    Efficiency

       V.    Process – input – output causality

INDICATORS OF IMPACT

Indicators are simple measures capable of measuring a phenomenon.  Impact indicators are designed to measure of show the degree of achievement of performance objective.

CHARACTERISTICS

A.   Validity: What is measured is the same what was intended to be measured

B.   Reliability: Same value should be obtained regardless of the fact who collects data.

C.   Relevant – To the objectives and the programme

D.   Sensitive – To smallest change in value

E.   Objective – Free from value judgment

F.    Simple – Measurement should not be costly or time consuming affairs

Indicators of Project Sustainability

A.  Continued Delivery of Services and Production of Benefits

·         Comparison of actual and intended benefits and services and their stability over time

·         Efficiency of service delivery

·         Quality of services (benefits)

·         Satisfaction of beneficiaries

·         Distribution of benefits among different economic and social groups

B.        Maintenance of Physical Infrastructure

·         Condition of physical infrast5ructure

·         Condition of plant and equipment

·         Adequacy of maintenance procedures

·         Efficiency of cost-recovery and adequacy of operating budget

·         Beneficiary involvement in maintenance procedures

C.        Long-Term Institutional Capacity

·         Capacity and mandate of the principal operating agencies

·         Stability of staff and budget of operational agency

·         Adequacy of interagency coordination

·         Adequacy of coordination with community organizations and beneficiaries

·         Flexibility and capacity to adapt project design and operation to changing circumstances

D.        Political Support

·         Strength and stability of support from international agencies

·         Strength and stability of support from the national government

·         Strength and stability of support from provincial and local government agencies

·         Strength and stability of support at the community level

·         Extent to which the project has been able to build a broad base of support and to avoid becoming politically controversial.

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