Subject: Project Analysis
Topic of Presentation is:
Project preparation and Introduction to PC-1
with Case study
The project cycle have five phases:
2) Preparation and Formulation
3) Review and Approval
Here we have a basic concern with the
phase 2 of the project cycle that is
preparation and formulation.
Phase 2: Project preparation
It has a four steps
2)Project document formulation
3)Establishment of baseline and target data
4)Project implementation planning
A feasibility study should form the core
of the proposal preparation process. Its
purpose is to provide stakeholders with
the basis for deciding whether or not to
proceed with the project and for
choosing the most desirable options.
The feasibility study must provide
answers to the following basic
Is the project technically and scientifically
sound, and is the methodology the best
among the available alternatives?
Is the project administratively manageable?
Is there adequate demand for the project’s
Is the project financially justifiable and
Is the project compatible with the customs
and traditions of the beneficiaries?
Is the project likely to be sustained beyond
the intervention period?
2)Project document formulation
Project preparation and formulation and project document
formulation are simultaneous processes.
Once the feasibility study has taken place and
implementation arrangements are agreed upon, the concept
proposal (which would have been revised throughout the
process) is transformed and expanded into a project
document throughout the project preparation and formulation
The project document is a summary of the situation
assessment, justification of methodology and strategies for
achieving the targeted changes, which come from each step
taken through project cycle phases 1 and 2.
3)Establishment of baseline
and target data
Data or information in the subject area of
the intended project should be gathered
during the project identification process
(phase 1) and analyzed to assess the
condition or situation of the targeted
populations or areas. It is possible that
the existing data or information are
insufficient or not valid, or that the
necessary data or information do not
exist at all.
Success of project implementation often
depends on the quality of project planning
before the project begins.
The following P&D project submission
checklist is designed to assess the feasibility
of projects and the readiness of project
managers to undertake them. The checklist is
designed as the project managers’ reference
guide in planning for effective and efficient
(a) Have all relevant P&D Divisions and regional offices been consulted
and are they fully familiar with the project document?
(b)Have the roles and responsibilities of the implementing
partners, including P&D cooperating agencies or supporting
organizations, been clearly established and agreed upon?
(c) Do the implementing partners have administrative, technical and
human capacities to undertake the project?
(d) Do the P&D Divisions involved have the technical and human
capacities to undertake the project?
(e) Have the priorities and needs of the countries selected for the project
been identified and incorporated in the project?
(f) Do the relevant Governments support or endorse the project?
(g) Has a gender-sensitivity analysis been conducted and incorporated in
the project document?
(h) Has the linkage to poverty alleviation been analyzed and incorporated
in the project document?
(i) Have all key stakeholders been identified and included in the
partnership for project management?
(j) Does the project incorporate activities to ensure policy, technical and
financial sustainability beyond the project implementation period?
1)Name of the Project
Indicate name of the project.
Provide name of District/Province.
Attach a map of the area, clearly indicating
the project location.
3)Authorities responsible for
Indicate name of the agency responsible
for sponsoring, execution, operation and
maintenance. For provincial
projects, name of the concerned federal
ministry be provided.
4. (a) Plan provision
If the project is included in the medium term/five year
plan, specify actual allocation.
If not included in the current plan, what warrants its
inclusion and how is it now proposed to be
If the project is proposed to be financed out of block
Total block provision
Amount already committed
Amount proposed for this project
(b) Provision in the current year PSDP/ADP
5. Project objectives
The objectives of the sector/sub sector as indicated in the
medium term/five year plan are reproduced. Indicate
objectives of the project and develop a linkage between
the proposed project and sectoral objectives.
In case of revised Projects, indicate objectives of the
project, if different from original PC-I.
6.Description and justification of project
Describe the project and indicate existing facilities in the
area and justify the establishment of the Project.
Provide technical parameters and discuss technology
aspect of the Project.
Provide details of civil works, equipment, machinery and
other physical facilities required for the project.
Indicate governance issues of the sector relevant to the
project and strategy to resolve them.
7. Capital cost estimates
○ Indicate date of estimation of Project cost.
○ Basis of determining the capital cost be provided. It
includes market survey, schedule rates, estimation on
the basis of previous work done etc.
○ Provide year-wise estimates of Physical activities by
main components as per following:
Component-wise, year-wise physical activities
Annual operating cost
Item-wise annual operating cost for 5 years and
sources of financing .
9. Demand supply analysis (excluding science &
governance & culture, sports & tourism sectors
Existing capacity of services and its supply
Projected demand for ten years
Capacity of projects being implemented both in the
public & private sector
Supply – demand gap
Designed capacity & output of the proposed project
10. Financial plan
Sources of financing
Indicate the amount of equity to be financed from each source
Sponsors own resources
Foreign equity (indicate partner agency)
Indicate the local & foreign debt, interest rate, and grace period and repayment period for each loan
separately. The loan repayment schedule is also annexed.
Grants along with sources
Weighted cost of capital
11. (a) Project benefits and analysis
Income to the project along with assumptions.
Quantify benefit to the target group
Environmental: Environmental impact assessment negative/ positive.
(b) Project analysis
Quantifiable output of the project
Unit cost analysis
Employment generation (direct and indirect)
Impact of delays on project cost and viability
12. a) Implementation of the project
Indicate starting and completion date of the project
Item-wise/year-wise implementation schedule in line chart co- related
with the phasing of physical activities.
Result Based Monitoring (RBM) Indicators
- Indicate Result Based Monitoring (RBM) framework
indicators in quantifiable terms in the following table.
13.Management structure and manpower requirements
Administrative arrangements for implementation of the project.
Manpower requirements during execution and operation of the
project be provided by skills/profession.
Job description, qualification, experience, age and salary of each
job be provided.
14. Additional projects/decisions required
Indicate additional projects/decisions required to optimize the
investment being undertaken on the project.
The name, designation and phone # of the officer responsible for ,
preparing and checking be provided. It may also be confirmed
that PC-I has been prepared as per instructions for the
preparation of PC-I for social sector projects.
The PC-I along with certificate must be signed by the Principal
Accounting Officer to ensure its ownership.
GOVERNMENT OF PAKISTAN
SOUTHERN PUNJAB POVERTY ALLEVIATION PROJECT
(SPPAP) – IFAD ASSISTED
Total Cost: RS.4126.062 million (US$ 49.120 million)
1. Name of the Project:
Southern Punjab Poverty Alleviation Project (SPPAP)
The Project is implemented in the following four districts of Southern Punjab:
3. Authority responsible for:
Planning and Development Department (P&D), Government
International Fund for Agricultural Development (IFAD)
Planning & Development Department, Government of Punjab.
Project Management Unit (PMU) at Bahawalpur in association with Agriculture and
Livestock Departments and the in partnership with the following private sector partners
and community organizations: Social Mobilization Partners (SMPs) through existing Community Organizations
District Management Units (DMUs)
Vocational Training Organizations (VTOs)
Entrepreneur Training Organizations (ETOs) through Entrepreneur Activists and Local
Business Development Service Associations
Consulting Firm for publicity, applications, contracting and reporting
Farmer Field School Partners (FFSPs)
iii. Operation and Maintenance:
iv. Concerned Federal Ministry:
Economic Affairs Division
Time Required for Completion
January 2011 to December 2015
4. (a) Plan Provision
If the project is included in the medium term/five year plan, specify
Project is included in the medium term plan
If not included in the current plan, what warrants its inclusion and
how is it now proposed to be accommodated.
The project supports the Government policy for poverty reduction
and enhancement of livelihoods for the poorest of the poor.
SPAPP will be funded by the International Fund for Agricultural
Development (IFAD). The Government will Co-finance in cash and
If the project is proposed to be financed out of block provision,
Provision in the current year
5) Project objectives and its relationships with
The project is aligned with the overall economic
development and poverty alleviation strategy of
the Government of Pakistan/Punjab.
The project is also consistent with the IFAD
Strategic Framework and the strategy outlined
in the Pakistan COSOP of 2009.
The Punjab Government’s medium term
development framework lays down the
development activities to be carried out in the
province in various sectors of the provincial
The design of the Southern Punjab Poverty
Alleviation Project (SPPAP) has emerged out of
series of field visits of project area and
discussions with Departments of Planning &
Development, Agriculture, Livestock and Finance
in Punjab so as, to align the project with the
current priorities and policies of the Provincial
The Project will focus on Government priorities in
the area of agriculture, livestock, vocational and
enterprise development in keeping with the
poverty alleviation targets of the Government
Project Goals and Objectives
SPPAP is designed to assist the Government of Punjab
achieve its economic growth and poverty alleviation
objectives. The overall goal of the project is to contribute to
the reduction of poverty in Southern Punjab. The project
objective is to increase incomes of 80,000 poor households
by enhancing the employment potential of the people and
increasing agriculture productivity and production.
The principal outcomes expected from the project include:
enhanced capacity for sustainable livelihoods through asset
enhanced capacity for employment and productive selfemployment
enhanced access to basic services, increased productivity
and production of agriculture produce and strengthened
local capacity for agriculture and livestock service provision.
6. Description, Justification and Technical Parameters of Project
Rural Poverty in the Punjab: According to the Punjab Economic Survey, 20
per cent of the provincial population is poor, with a higher concentration of poor
in the rural areas (44%). This means that roughly 18 million people are living
below the poverty line and vulnerability is high.
However, poverty is likely to rise further in 2009-2010 as a result of
unprecedented food inflation, transmission of international energy prices to
domestic consumers and post flood situation. Furthermore, changes in patterns
of land tenure in the Punjab have, over time, also contributed to poverty.
Of 12 numbers of districts of Punjab declared as calamities affected by Punjab
Disaster Management Authority (PDMA), two districts i.e. Muzaffargarh and
Rajanpur lie in the project area. As per notification of Relief and Crises
Management Department, Board of Revenue, Govt. of the Punjab a total of 988
villages/revenue estates have been affected by floods of 2010 and declared as
calamities affected areas. The notification shows that hill torrent/floods2010
have affected 70%-100% area of the affected villages of Rajanpur District
The floods of 2010 have further increased in the poverty of these districts. The
assessments of damage to the property and life in these flood affected districts
are being made. In general the people are in desperate need of support for reconstruction of their houses, replenishment of livestock and agricultural inputs
for sustaining their livelihood.
Gender Dimensions of Rural
In Pakistan, gender inequalities
persist, directly undermining the
progress. Pakistan ranks low on
international indicators of gender
equity. On UNDP’s Gender
Development Index (GDI)
Pakistan ranks 124th out of 155
countries and on the Gender
Empowerment Measure (GEM) it
ranks 99th out of 109 countries.
Women in rural Pakistan have
been described as being the
most socially excluded. Rural
women are the most deprived in
terms of access to basic social
services, livelihood opportunities
and vulnerability to violence.
For example, 65 per cent of the
women in urban areas are
literate in contrast to 30 per cent
in the rural areas of Pakistan.
Similarly, the overall incidence of
home deliveries in Pakistan is
significantly higher in rural areas
(78 per cent) compared to urban
areas (68 per cent).
Gender disparities are also more
pronounced in rural areas: men’s
literacy rate (60 per cent) is twice
as high as that of women (30 per
Women in rural areas have
heavy workload and carry out a
wide range of tasks in
agriculture, livestock rearing and
off-farm activities. Despite their
hard work women do not get the
commensurate returns from crop
or livestock activities because of
the exploitative and gender
biased arrangements which
determine their share in crop and
The southern districts of Punjab rank the lowest in
terms of female literacy. Large gender disparities
persist across the urban and rural sectors, and
tend to be higher in rural areas. There also
remains a wide gap in employment opportunities.
Limited access to income generating
opportunities, together with a range of life cycle
risks related to malnutrition, domestic
violence, poor health status, low literacy, lack of
assets, early marriages, repeated child
births, disempowerment, over-work has left
women considerably more vulnerable to poverty
than men, resulting in increasing feminization of
The area is also known for crimes against women such
as honor killings.
Another issue which needs to be highlighted due to its
impact on a very large number of agricultural laborers,
especially women and girls, is exposure to harmful
pesticides used in cotton fields. An estimated 2.6 million
women and girls are employed as cotton pickers on the
cotton farms during the harvesting season between
September and December.
Causes of Rural Poverty
A major reason for rural poverty is the highly unequal
distribution of assets particularly land and access to
water, livestock, productive assets, low level of access to
health services, lack of education, low level of skills,
limited access to finance, employment opportunities and
lack of voice in decisions that directly affect the poor.
The Target Group, Including Gender Issues:
The target group of the Southern Punjab Poverty Alleviation
Project will be landless laborers, smallholder farmers, women
headed households with a special focus on women from the
target group households. In each of these categories, the
target households will be those who obtain a score of equal to
or less than 23 based on the National Poverty Score Card
Survey that will be administered prior to the implementation of
project activities in the selected districts. It is expected that
around 80,000 households will be targeted under the new
Southern Punjab Poverty Alleviation Project.
Casual labor in the target districts is characterized by irregular
employment, seasonal variation in availability of work, low
wages and landlessness. In the target districts, both men and
women work mostly as unskilled workers in agriculture,
manufacturing, construction industry and the service sector
and as domestic help. They live either on rent, occupied state
land or on land that belongs to landlords. Men tend to work
mostly as agricultural labour and as off-farm labour in
construction and in factories, earning daily wages on average
of US$ 2 to US$ 3 per day.
Gender Targeting and Mainstreaming
Women are expected to be the major beneficiary of the
Southern Punjab Poverty Alleviation Project. Special
measures are being undertaken to ensure the inclusion
of women in the Project. The first of these measures is to
ensure that a majority of the members of the community
organizations which are formed are women. Even in
villages where men are included in project activities the
main interaction of SPPAP will be through women’s
During the field visits it was found that going through
Women’s Organizations is a very empowering
opportunity for women who then assume a leadership
role in conducting the discussion and in decision-making.
Where the CO is mixed or includes only men, women
seldom get an opportunity to participate while the men
invariably participate and sit on the fringes in a gathering
of Women’s Community Organization.
7.Components of the Project
SPPAP has three main components. These
include (i) Livelihoods Enhancement (ii)
Agriculture and Livestock Development and
(iii) Project Management. Components 1
and 2 are mutually supportive and
reinforcing: Component 1 aims primarily at
creating a solid, and enabling basis on
which the target groups could embark on
livelihoods enhancement initiatives for both
farm and non-farm activities.
Capital Cost Estimates
RS: 4,126.0613 Million
(US $ 49.120 Million)
Components Project Cost Summary
A. Livelihoods Enhancement
Vocational and Entrepreneurial Training
Community Physical Infrastructure
B. Agriculture and Livestock Development
Productivity Enhancement Initiatives
Training Service Providers
C. Project Management
Total Baseline Costs
Total Project Costs
9. Annual Operation & Maintenance Costs
after the project is completed
No post completion costs to the
Government will be incurred under the
project. The community physical
infrastructure shall be operated and
maintained by the COs.
10. Demand and Supply Analysis
People of the four southern districts are generally engaged in
agriculture related work or are doing low skilled manual work.
It is because of this that the poverty rate in these four districts
is high. Also bulk of the population is illiterate which leaves
them with little opportunity to improve their skill level.
Livestock is one of the primary sources of income for the
people in the rural areas and mostly is the only capital asset
available. However, because the poor cannot afford to
maintain a supply of feed and fodder for their animals
therefore their animals are generally weak. The quality of
animals which they rear is also poor thus fetching them less
The project districts generally have inadequate basic
infrastructure and suffer from a lack of safe drinking water,
water for irrigation, employment opportunities, health and
education facilities, access to markets, access to appropriate
technology and to agriculture and veterinary extension
11. Financial Plan & Mode of Financing
IFAD will finance 81.8% of the Project costs
(PkR 3,374 million, equivalent to USD 40.2
million) through a loan to GoPb on highly
concessionary terms. The Government will
Co-finance 11.5% (PkR 473 million or USD
5.6 million) in-kind and cash costs. The
beneficiaries will contribute 6.8% of Project
Costs (PkR 279 million equivalent to USD 3.3
million) through in-kind contribution
Financing Plan by Components and
Source (PkR Million)
A. Livelihoods Enhancement
Asset Creation /a
Entrepreneurial Training /b
B. Agriculture and Livestock
Enhancement Initiatives /d
C. Project Management /f
Total PROJECT COSTS
12. Project Benefits and Analysis
SPPAP benefits will include asset creation, vocational and
enterprise skills, access to basic services, investments in
productivity enhancement of existing land and livestock assets,
improvement in farming practices and knowledge and increased
access to farming services for the small holder farming
All of these activities are expected to increase the incomes of
the targeted households through increase in productivity of
human and natural resources. The Project is investing in
activities which are expected to enhance the incomes of 80,000
households by anywhere from 20% to 80%.
Community Infrastructures: Employment generation- an
expanded capacity of smallholder farmers to produce for the
market and obtain an acceptable return for their produce will
lead to increased employment opportunities for the households
in the lowest poverty bands which depend on casual labour as
an important source of livelihood, In addition, opportunities for
off-farm employment generation will be created through an
integrated package of investments in skills, equipment and
Economic Rate of Return: The economic rate of return has
been estimated over a 20 year period at 17% and was
found very robust with a sensitivity analysis showing a drop
to 15% if benefits are delayed by 2 years, and to 15% if
costs increase by 10% or benefits reduced by 10%. It
should however be emphasized that this is the minimum
and has been based only on increase in incomes at
household level because of the estimation difficulties for
Environmental Appraisal including Climate Change and
Disaster Risk Reduction
The project falls in Environmental Category B. No negative
cumulative effects of project interventions are envisaged.
The small nature projects are community based and any
probable cumulative effect will be taken care of during
design and implementation process.
Employment generation is expected from the
Project in two ways, firstly, through
implementation of the Project where recruitment
will be done for PMU at Bahawalpur and District
Management Units at Bahawalnagar and
Rajanpur and secondly, the men and women
belonging to 80,000 household units will have
better opportunities of getting employed or for
being self-employed because of improved skill
sets. Livelihood enhancement, Agriculture and
Livestock and dairy interventions will also create
a number of employment activities in the project
The Project is expected to commence by
January 2011 and will be completed in five
years. Financial phasing for each of the
project component has been shown in
following Table at the end.
Starting and Completion Date of the Project
The Project will be implemented over 5 years
(2011 to 2015). The starting date of the
project will be 1st January 2011 and
completion date will be 31st December 2015.
The Punjab Province Planning and Development
Department will be the Executing Agency. As the EA it will
be responsible for (i) overall coordination and management
of the Project, including coordination with other
Government ministries and agencies, and other
stakeholders at the provincial level; (ii) ensuring timely
budgetary allocations to the PMU; (iii) ensuring that regular
audits are done and the reports sent to IFAD (iii) ensuring
necessary approvals are obtained in a timely manner for
effective project implementation; (iv) approval of annual
Project budgets and work plans, and (v) chairing the
Project steering committee (PSC).
The Manpower Requirement by Skills during Execution
and Operation of the Project
The Project Management Unit will have the following
Specialists in Infrastructure, Agriculture, Livestock, Training
& Enterprise Redevelopment, Gender and M&E sectors.
Assistant Directors Agriculture, Livestock, Finance and
Accounts and Training and Enterprise Development
Support Staff (Computer Operator (1), Account Officer (1),
Office Secretaries (2), Drivers (4), Naib Qasid (2), Guards
(2), Gardner (1), Sweeper (1)
District Management Units at Bahawalnagar and
District Offices established in all the districts of
Bahawalnagar and Rajanpur will be responsible
for Monitoring and Evaluation, program
DMU Team will manage the components of the
The District Management Units will report to
Project Management Unit.
Deputy Director M&E based in PMU will keep a
track of the performance on continuous basis.
The composition of District Management Units
will be as follows:
Assistant Director Agriculture (2),
Livestock (2) and Training and
Enterprise Development (2)
Support Staff (Office Secretaries (2), 8
Drivers (4), Naib Qasid (2), Guards
(4), Gardner (2), Sweeper (2))
All the recruitment in PMU and DMUs shall be done
through a competitive and transparent process. The
following recruitment committee will be responsible for
hiring of managerial staff: Chairman, Planning and Development Board
Secretary, Finance Department
Secretary, Planning and Development Department
Representative from IFAD
Project Director, PMU-SPPAP
The Project Management Unit will be housed in
Bahawalpur with multi sectorial components and
requiring engagement in four backward districts. As is
evident from the typical geographical conditions of the
area, project shall be carried out and implemented in
the difficult area.
14. Additional Projects/ Decisions Required
15. Certified that the project proposal has been prepared
on the basis of instructions provided by the Planning
Commission for the preparation of PC-1 for
infrastructure sector projects.
(CH. IFTIKHAR AHMAD)
Admin Officer (R.P.)
Govt. of the Punjab
Planning & Development Dptt.
( HAMID MAHMOOD)
Assistant Chief (R.P.)
Govt. of the Punjab
Planning & Development Dptt
Checked By: (Dr. Mahmood Khalid Qamar)
Chief ( R.P.)
Govt. of the Punjab
Planning & Development Dptt.
Approved By: (Ubaid Rubbani Qureshi)
Govt. of the Punjab
Planning & Development Dptt.
Counter Signed by: (Javaid Aslam)
Govt. of the Punjab
Planning & Development Dptt