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3.4 project level lfa and quality

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    • 1. Sustainable Economic Development of the Sudurnes region, Iceland LFA for Projects and Project Quality Appraisal JOSE MATEOS MORENO Ásbrú, January 2012
    • 2. 2 1. Project design 2. Project quality appraisal (checklist) Content
    • 3. 3 1. Project Design
    • 4. 4 Project Design: Definition of a Project • Economically indivisible series of activities for a precise technical function • Identified outputs and objectives • Clearly defined beginning and end • A programme is a heterogeneous group of measures and projects
    • 5. 5 Project Design: Tasks Responsibilities of Final Beneficiary: • Designing of project proposals and submitting them to Lead Ministry Sectoral Offices Responsibilities of Lead Ministry (Sectoral Offices): • Compliance with the sectoral strategic documents • Verifies technical quality of the project proposal • Verifies if the project proposal meets the eligibility criteria for IPA measures • Ensures the national financial contribution for the project
    • 6. 6 Elements of project design • Why: the problem or need and wider objectives • What: activities, results and project purpose • How: internal and diagonal logic: - Indicators for monitoring and evaluation - Risk analysis and assumptions - Preconditions - Finance: costs and co-financing - Implementation schedule
    • 7. 7 Activities in Project Design 1. Information gathering for the problem analysis and the elements of project design 2. Deciding the scale and scope of the project 3. Assembling the project design elements 4. Filling in the project application form
    • 8. 8 • Wider objective: the overall problem NOTE: The project cannot solve the wider objective by itself! • Project purpose: the immediate objective that the project can achieve • Results: the end state of the activities • Activities: sub projects Why and What
    • 9. 9 Project Design and Indicators Specify indicators in order to test if the objectives of the project are achieved • Wider objective: global impact indicator • Project purpose: impact indicator • Activity: output or result indicator • Means: input indicator (budget)
    • 10. 10 Project Design, Risks and Assumptions • Risks – uncertain events which influence the success of the project, negative statement • Assumption – positive statement Purpose of specifying risks: 1. To assess risks of project failure in an early planning stage 2. To adapt project design when risks are unacceptable 3. To adopt a risk management plan 4. To allow for monitoring during implementation
    • 11. 11 Conditions necessary for the success of the programme, but which cannot be influenced by the project management team. Purpose of specifying assumptions: • to assess the risks to the project • to allow for monitoring during implementation Assumptions
    • 12. 12 Risk Analysis • Identify relevant types of risks for the project: organizational, political, economic, technical, social, legal • Assess the risks: – Probability: high, medium, low (0-100%) – Impact of the risk (high, medium, low) Important risks should be included in project design
    • 13. 13 Example of Risks – OP COMP • Economic: Devaluation of national currency: Technology imported more expensive • Financial: cost overruns • Legal: change in sectoral custom duties • Social: restructuring specific industrial branches: unemployment” • Technical: New technology: insuficient skills • Spatial: Land acquisition problems (delays)
    • 14. 14 2. Project quality appraisal
    • 15. 15 Risks and Project Proposals • Are risk management actions to minimise important risks included in project design? (e.g. improving capacity of implementing bodies) • Are project preparation documents of high enough quality to minimise risks at later stages? (e.g. technical & economic feasibility studies, tender dossier)
    • 16. 16 Checklist for Quality Appraisal of project proposals (1) QUALITY ASSESSMENT PARAMETERS 1. Relevance – Are the beneficiaries clearly identified? – Are the problems of the beneficiaries described sufficiently? 1.3 Is the problem analysis sufficiently comprehensive? 1.4 Do the Overall Objectives explain why the project is important for society? 1.5 Is the Project Purpose defined in terms of benefits to the beneficiaries? 1.6 Has the need for the results been demonstrated?
    • 17. 17 Checklist for Quality Appraisal of project proposals (2) 2. Feasibility 2.1 Will the Project Purpose contribute to the Overall Objectives (if the assumptions hold)? 2.2 Are the Results described as services to be delivered to the target group? 2.3 Will the Project Purpose be achieved if the Results were delivered? 2.4 Are the means sufficiently justified by quantified objectives 2.5 Have important external conditions been identified? 2.6 Is the probability of realisation of the assumptions acceptable? 2.7 Will implementing agencies be able to implement the project?
    • 18. 18 Checklist for Quality Appraisal of project proposals (3) 3. Sustainability 3.1 Will the relevant authorities have a supportive policy after the project has ended? 3.2 Is the technology appropriate for the local conditions? 3.3 Will the ecological environment be preserved during and after the project? 3.4 Will there be adequate ownership of the project by the beneficiaries? 3.5 Will women (and other groups) have adequate access to benefits and production factors during and after the project? 3.6 Will the implementing agencies be able to provide follow-up after the project? 3.7 Does the financial and economic analysis confirm that the ‘incremental project’ is efficient, effective, viable and relevant?