This document provides a template for an annual work plan and budget (AWP&B) for a development project. It outlines sections to include on the country and project details, background context, achievements to date, costs and financing, procurement, expected benefits and outreach, and implementation support needs. Key information to provide includes the financial year, planning period, target numbers of beneficiaries, any changes to objectives or strategy, procurement plans, and capacity development requirements for project implementation.

1. [Annotated template]
Annual Work Plan and Budget
PART I
Country:
Project Title:
Project Number:
Financial year: Indicate financial/fiscal year for the proposed budget
Planning period: Indicate which period is covered by the proposed AWP&B
(e.g. June 2006/May 2007)
Year of implementation Situate proposed planning period within the overall project
duration (e.g. Year 3)
Total project budget (in USD):
Total expenditures to date (in
USD):
Date of loan effectiveness:
Date of project start: Indicate date of actual start of project implementation1
Project duration: Indicate number of years for total project duration
Date of project closing: Indicate estimated year of project closing
Date of latest Logframe revision Indicate date of latest approved Logframe revision
Date of RIMS benchmark survey: Indicate date when the initial RIMS baseline survey was
carried out
Date of RIMS mid-term survey: Indicate date when the mid-term RIMS survey was (or will
be) carried out
Date of RIMS completion survey: Indicate estimated date for carrying out the RIMS completion
survey
Date of Mid-Term Review Indicate date when the Mid-Term Review was (or will be)
carried out
Date of Completion Review Indicate date when the Completion Review will be carried out
1
e.g. official date when the PMU was formed or first field activities implemented

3. A. Background
[This Chapter summarizes the most important external developments with a probable impact of project
implementation that are to be expected over the AWP&B period. In particular, this Chapter identifies
whether any Logframe assumption is unlikely to hold true.]
The following elements may be discussed, if relevant:
• Government policies: Indicate any upcoming change or new policies that will become
effective over the AWP&B period and how they may impact on project implementation. Briefly
explain the measures planned to mitigate potential negative effects or to take advantage of
potential opportunities.
• Implementation arrangements: Discuss major changes in initial implementation
arrangements or PMU staffing situation that are expected to take place over the next AWP&B
period.
• Target Group: Indicate any changes that may become effective over the
AWP&B period as regards the situation or attitude of the project Target Group (e.g. increasing
reluctance of women to attend agricultural training courses). Briefly explain the measures
planned to mitigate potential negative effects or to take advantage of potential opportunities.
• Production factors/local economic context: Discuss major changes in the external
economic context with a probable impact on the sustainability or economic rate of return of
project’s investments (e.g. decline in market prices, persistent droughts in target area). Briefly
explain the measures planned to mitigate potential negative effects or to take advantage of
potential opportunities.
B. Achievements to date and proposed implementation focus for upcoming year
[While the detailed achievements of previous AWP&B period should be detailed in the Annual
Progress Report, this Chapter provides a very rapid overview of the status of implementation of the
various Logframe Components, as a basis to then justify the choice of objectives and implementation
focus for the new AWP&B period. This is done by filling the table below and providing some further
textual information]
Table 1 - Summary of main achievements to date
Components % of achievement Focus for new
to date (estimation) AWP&B period?
(Yes/No)
Component 1
Component 2
Component 3
Etc.
• Changes in objectives: Indicate whether there are any substantial changes in objectives and
physical targets for the remaining implementation period following a major change in the
context or a revision of the project Logframe during the last AWP&B period.
Note: If the Project Logframe has been revised and duly approved, it should be annexed.
• Changes in implementation strategy: Briefly indicate any changes in the project
implementation strategy as compared to previous year(s). Justify why these changes were
required and present what are the expected benefits of this change in strategy.

4. C. Costs and financing
[This Chapter discusses issues related to project implementation costs and financing.]
• Costs: Highlight any major changes in unit costs due to inflation/deflation or changes in
design compared to previous years and their probable impact on project budget. Indicate the
manner in which these changes are being dealt with in the proposed budget (e.g. budget re-
allocation).
• Financing: Indicate foreseeable issues related to the flow of funds, to the timeliness of
budget approval and funds availability and to disbursement procedures for all project
financiers. Suggest measures to overcome these constraints.
D. Annual Procurement
[While a detailed Annual Procurement Plan should be annexed, this Chapter presents any major
changes in the overall Procurement Plan, together with justification, and highlights any difficulty that
might be anticipated in the area of procurement based on previous experience and identifies
mitigating measures].
• Procurement Plan: Highlight any major changes in procurement as compared to the overall,
agreed Procurement Plan and provide justifications for these changes.
• Procurement process: Indicate foreseeable issues related to overly complex procurement
methods or delays in tendering and related decision-making processes. Suggest measures to
mitigate these constraints.
E. Expected benefits and target group outreach
[With reference to the specific criteria or thresholds2 for target group identification and selection
identified in the Appraisal Report, this Chapter provides information on the number of beneficiaries
reached so far, by “category”, and on the number of new beneficiaries who are planned to be reached
this year. This is done by filling up the following table]
Table 3 – Estimated outreach by Target Group “category”
Target Group Total number of people Number of people reached Total number of
“category” to be reached by the end so far (cumulative) additional people
of project implementation expected to be reached
period this year (annual)
Total number Of which,
women
Example:
Landless rural 30% total target group 10,000 (34% 500 2,500
people total)
Women heads of 10% total target group 1,000 (3% total) 1,000 500
households
Farmers owning 30% total target group 8,000 (27%) NA 3,000
less than 0.5 ha of
land
Farmers from 30% total target group 10,000 (34%) 2,000 2,000
ethnic minority
2
For example: the Appraisal Report may specify that the project should target 20% of landless people; 40% of
very poor households and 40% of poor households, with “very poor people” being defined as people experiencing
at least 4 months food insecurity per year and “poor people” being defined as people experiencing at least 2
months of food insecurity per year.
2

5. F. Implementation support needs [Suggested length 0.5 page maximum]
[This Chapter presents the principal capacity gaps currently identified among the PMU staff -or any
other staff from other implementing agencies- and highlights proposed mitigating measures. For
measures that are beyond PMU capacities to implement or finance, the Chapter also identifies the
type of implementation support that will be required from the Cooperating Institution or IFAD
throughout the AWP&B period, how badly is this support needed and the best period for this support
to be provided.]
Capacity gaps and proposed Implementation support requirements
mitigating measures
Capacity gaps Staff/persons Proposed Implementation In which When is
in need of capacity support specific area it
capacity building needed from? is it needed? needed?
building measure
3