1. Sustainable Economic Development of the
Sudurnes region, Iceland
LFA for Projects
and Project Quality Appraisal
JOSE MATEOS MORENO
Ásbrú, January 2012
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)
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?
