Welcome To

 Presentation
Group No: 09

1.   Ariful Islam Khan    09106070
2.   Shamol Reza          09106043
3.   Taufiqul Islam       10106057
4.   Abdul Alim           10106047
5.   Md Hachnayen Ahmed   10106063
Objectives
• Through this Presentation, we attempt to bring
  into focus what we believe to be some of the
  important practical issues that face development
  planners in the field of project Appraisal.




                                                 3
Summary
• This session will introduce dimensions of project
  appraisal, including:
   – issues of social acceptability/desirability,
     environmental friendliness,
   – technical feasibility/ appropriateness,
   – gender sensitiveness,
   – economic soundness and
   – ability to be sustainable and most importantly
     financial viability.

                                                      4
Meaning and Overview of Project
               Appraisal
Appraisal means Assessment and estimation.
Project define as:
 Non routine
 Involves number of uncertainties.
 Definite period of time. ( starts to end ).

  Project is the co ordination of the efforts of persons drawn
  from different functional areas and contribution to
  external agencies.


                                                             5
Project Appraisal

• When is it done:
  – After preparation and design of the project
• What is project appraisal:
  – Provides a comprehensive and systematic review of all
    aspects of the project
• Why the project Appraisal is Needed:
  – To development and successful completion of projects



                                                        6
Project Appraisal (cont.)
• Hard questions are asked and the answers determine
  whether project proposal is adopted or rejected.
• The questions raised rotate around:
   – appropriateness of project objectives,
   – size, scope, implementation methods,
   – modalities, time scale, and
   – the project technical, financial, economic, institutional,
     environmental, social and distributional justification of
     the project.


                                                                  7
What can a Project Appraisal deliver?

• Be reliable and objective in choosing projects
• Make sure their program benefits all sections of the
  community
• Provide documentation to meet financial and audit
  requirements
• Appraisal justifies spending money on a project.
• Appraisal is an important decision making tool.
• Appraisal lays the foundations for delivery.


                                                         8
Good appraisal systems should ensure
                  that:
• Project application, appraisal and approval functions are
  separate
• All the necessary information is gathered for appraisal
• Race/tribal equality and other equality issues are given
  proper consideration
• Those involved in appraisal have appropriate technical
  expertise
• There are realistic allowances for time involved.


                                                              9
Key issues in appraising projects
• Need, targeting and objectives
  Applicants should provide detailed description of
  project, identifying local needs/ objectives it aims to meet.
• Context and connections
  Are there links between the project and other local
  programmes and projects.
• Consultation
  Local consultation determines priorities and secure
  community consent and ownership.

                                                              10
Key issues in appraising projects
• Options
  This is concerned with establishing whether there are
  different ways of achieving objectives
• Inputs
  Important to ensure all the necessary people and resources
  are in place to deliver project.
• Value for money
  This is one of the key criteria against which projects are
  appraised .

                                                          11
Key issues in appraising projects

• Implementation
  Appraisal scrutinises the practical plans for
   implementation, asking whether staffing, timetable and
   implementers are okay.
• Risk and uncertainty
  There should also be contingency plans in place to
   minimize the estimated risks.




                                                            12
Key issues in appraising projects

• Eligibility
   – Regional Development
   – Environmental protection

• Legal Frame Work
   – Policies, public acceptance
   – Licensing, safety
   – Environmental compatibility


                                       13
Key issues in appraising projects

• Technology And Design
   – Project Definition
   – Viability and performance
   – Adaptation to technical progress
   – Local-specific requirements
   – Appropriate technical capacity
   – Life expectancy



                                        14
Key issues in appraising projects

• Time Schedule
   – Preparation of feasibility studies
   – Environmental studies Licensing requirements
   – Time needed for procurement
   – Local conditions (climatic, etc)




                                                    15
Key issues in appraising projects

• Environmental and Social Compatibility
  – Impact analysis, mitigation measures Direct, indirect,
    long-distance effects
  – Compliance with international standards
  – Least-polluting technology




                                                             16
Key issues in appraising projects

• Economic + Financial Viability
   – Cost effectiveness
   – Financial international rate of return
   – Economic international rate of return
   – Pay-back period, etc
• Investment Cost
   – Local and foreign currencies
   – Phasing of expenditure
   – Cost Justification
                                              17
Key issues in appraising projects

• Forward strategies
  Appraisal should also consider mainstream links
  and implications in case the project funds are over
• Sustainability
   Appraisal should include an assessment of a
  project’s environmental, social and economic
  impact, its positive and negative effects.


                                                        18
Checklist for project appraisal
Some Questions worth asking:

• Are appraisals systematic and disciplined with a clear
  sequence of activities and operating rules?
• Is there an independent assessment of the project?
• Does the appraisal process conclude in clear
  recommendations that inform approval (or rejection) of
  the project?



                                                           19
Checklist (cont.)
• Is the approval stage clearly separate?
• Is the appraisal process well documented
   – with key documents signed,
   – showing ownership and agreement, and
   – allowing the appraisal documentation to act as basis
      for future management, monitoring and evaluation?
• Does appraisal system comply with relevant government
  guidance?
• Are right people involved and, if necessary, how can you
  widen involvement?


                                                             20
Feasibility Study

• Aim of a feasibility study:
     • Development objectives
     • Policy framework and detailed project objectives
     • Technical soundness of the project
     • Administrative feasibility of the project




                                                          21
Feasibility Study - Aims (cont.)

• The economic and financial viability of the
  project proposal
• The status of demand for the project
  beneficiaries
• Other important policy and cross cutting issues
  (gender, environment)




                                                    22
Practical
• Appraise your identified projects in terms of the following:
  – Technical analysis
  – Economic Analysis
  – Financial Analysis
  – Environmental Analysis, and
  – Social Analysis
  – Gender Analysis
  – Ecological Analysis
  – Political

                                                             23
24
Technical Appraisal
• Will the project Work?
• Availability of the required quality and quantity of
  raw material.
• Availability of utilities like power and water etc
• Follows anti pollution laws




                                                         25
Financial Appraisal
• Can the project be financed properly?
• Will there be sufficient funds to cover the
  expenditure requirements during the life of the
  project?
• Means of financing




                                                26
Economic Appraisal
• Impact of the project one the distribution of income
  in the society
• Impact of project on the level savings and investment
  in the society and socially desirable objectives like
  self sufficiently, employment etc.
• Contribution of project




                                                      27
Social Aspects
• What will be the effect of the project on different groups?
  At
   – Individual
   – Household and
   – Community levels
• How will the project impact on women and men?
• Will the social benefits of the project be greater than the
  social costs over the life of the investment when account
  is taken of time?
                                                                28
Environmental Appraisal
• Will the project have any adverse effect on the
  environment?
• Have remedial measures been included the project
  design?




                                                     29
Ecological & Political Appraisal

 Environmental Damage.
 Restoration Measures.

 Will the project be compatible with government policy, at
  both central, regional and local level?




                                                              30
Conclusion
• It is seen from the previous discussion that the Project
  Appraisal can be structured to cover the full range of
  functionality of the project management process. It is
  a powerful tool which should not be overlooked but
  which must be judiciously applied .




                                                         31
Thank You


            32
Any Question…..?




                   33

Ppt on project appraisal

  • 1.
  • 2.
    Group No: 09 1. Ariful Islam Khan 09106070 2. Shamol Reza 09106043 3. Taufiqul Islam 10106057 4. Abdul Alim 10106047 5. Md Hachnayen Ahmed 10106063
  • 3.
    Objectives • Through thisPresentation, we attempt to bring into focus what we believe to be some of the important practical issues that face development planners in the field of project Appraisal. 3
  • 4.
    Summary • This sessionwill introduce dimensions of project appraisal, including: – issues of social acceptability/desirability, environmental friendliness, – technical feasibility/ appropriateness, – gender sensitiveness, – economic soundness and – ability to be sustainable and most importantly financial viability. 4
  • 5.
    Meaning and Overviewof Project Appraisal Appraisal means Assessment and estimation. Project define as:  Non routine  Involves number of uncertainties.  Definite period of time. ( starts to end ). Project is the co ordination of the efforts of persons drawn from different functional areas and contribution to external agencies. 5
  • 6.
    Project Appraisal • Whenis it done: – After preparation and design of the project • What is project appraisal: – Provides a comprehensive and systematic review of all aspects of the project • Why the project Appraisal is Needed: – To development and successful completion of projects 6
  • 7.
    Project Appraisal (cont.) •Hard questions are asked and the answers determine whether project proposal is adopted or rejected. • The questions raised rotate around: – appropriateness of project objectives, – size, scope, implementation methods, – modalities, time scale, and – the project technical, financial, economic, institutional, environmental, social and distributional justification of the project. 7
  • 8.
    What can aProject Appraisal deliver? • Be reliable and objective in choosing projects • Make sure their program benefits all sections of the community • Provide documentation to meet financial and audit requirements • Appraisal justifies spending money on a project. • Appraisal is an important decision making tool. • Appraisal lays the foundations for delivery. 8
  • 9.
    Good appraisal systemsshould ensure that: • Project application, appraisal and approval functions are separate • All the necessary information is gathered for appraisal • Race/tribal equality and other equality issues are given proper consideration • Those involved in appraisal have appropriate technical expertise • There are realistic allowances for time involved. 9
  • 10.
    Key issues inappraising projects • Need, targeting and objectives Applicants should provide detailed description of project, identifying local needs/ objectives it aims to meet. • Context and connections Are there links between the project and other local programmes and projects. • Consultation Local consultation determines priorities and secure community consent and ownership. 10
  • 11.
    Key issues inappraising projects • Options This is concerned with establishing whether there are different ways of achieving objectives • Inputs Important to ensure all the necessary people and resources are in place to deliver project. • Value for money This is one of the key criteria against which projects are appraised . 11
  • 12.
    Key issues inappraising projects • Implementation Appraisal scrutinises the practical plans for implementation, asking whether staffing, timetable and implementers are okay. • Risk and uncertainty There should also be contingency plans in place to minimize the estimated risks. 12
  • 13.
    Key issues inappraising projects • Eligibility – Regional Development – Environmental protection • Legal Frame Work – Policies, public acceptance – Licensing, safety – Environmental compatibility 13
  • 14.
    Key issues inappraising projects • Technology And Design – Project Definition – Viability and performance – Adaptation to technical progress – Local-specific requirements – Appropriate technical capacity – Life expectancy 14
  • 15.
    Key issues inappraising projects • Time Schedule – Preparation of feasibility studies – Environmental studies Licensing requirements – Time needed for procurement – Local conditions (climatic, etc) 15
  • 16.
    Key issues inappraising projects • Environmental and Social Compatibility – Impact analysis, mitigation measures Direct, indirect, long-distance effects – Compliance with international standards – Least-polluting technology 16
  • 17.
    Key issues inappraising projects • Economic + Financial Viability – Cost effectiveness – Financial international rate of return – Economic international rate of return – Pay-back period, etc • Investment Cost – Local and foreign currencies – Phasing of expenditure – Cost Justification 17
  • 18.
    Key issues inappraising projects • Forward strategies Appraisal should also consider mainstream links and implications in case the project funds are over • Sustainability Appraisal should include an assessment of a project’s environmental, social and economic impact, its positive and negative effects. 18
  • 19.
    Checklist for projectappraisal Some Questions worth asking: • Are appraisals systematic and disciplined with a clear sequence of activities and operating rules? • Is there an independent assessment of the project? • Does the appraisal process conclude in clear recommendations that inform approval (or rejection) of the project? 19
  • 20.
    Checklist (cont.) • Isthe approval stage clearly separate? • Is the appraisal process well documented – with key documents signed, – showing ownership and agreement, and – allowing the appraisal documentation to act as basis for future management, monitoring and evaluation? • Does appraisal system comply with relevant government guidance? • Are right people involved and, if necessary, how can you widen involvement? 20
  • 21.
    Feasibility Study • Aimof a feasibility study: • Development objectives • Policy framework and detailed project objectives • Technical soundness of the project • Administrative feasibility of the project 21
  • 22.
    Feasibility Study -Aims (cont.) • The economic and financial viability of the project proposal • The status of demand for the project beneficiaries • Other important policy and cross cutting issues (gender, environment) 22
  • 23.
    Practical • Appraise youridentified projects in terms of the following: – Technical analysis – Economic Analysis – Financial Analysis – Environmental Analysis, and – Social Analysis – Gender Analysis – Ecological Analysis – Political 23
  • 24.
  • 25.
    Technical Appraisal • Willthe project Work? • Availability of the required quality and quantity of raw material. • Availability of utilities like power and water etc • Follows anti pollution laws 25
  • 26.
    Financial Appraisal • Canthe project be financed properly? • Will there be sufficient funds to cover the expenditure requirements during the life of the project? • Means of financing 26
  • 27.
    Economic Appraisal • Impactof the project one the distribution of income in the society • Impact of project on the level savings and investment in the society and socially desirable objectives like self sufficiently, employment etc. • Contribution of project 27
  • 28.
    Social Aspects • Whatwill be the effect of the project on different groups? At – Individual – Household and – Community levels • How will the project impact on women and men? • Will the social benefits of the project be greater than the social costs over the life of the investment when account is taken of time? 28
  • 29.
    Environmental Appraisal • Willthe project have any adverse effect on the environment? • Have remedial measures been included the project design? 29
  • 30.
    Ecological & PoliticalAppraisal  Environmental Damage.  Restoration Measures.  Will the project be compatible with government policy, at both central, regional and local level? 30
  • 31.
    Conclusion • It isseen from the previous discussion that the Project Appraisal can be structured to cover the full range of functionality of the project management process. It is a powerful tool which should not be overlooked but which must be judiciously applied . 31
  • 32.
  • 33.