Concept of Project and project management in Bangladesh

1. Project Planning and
Management

2. Definition of Project
Genesis
Latin word “pro” means forward, “Jacere” means throw. Early
senses of the verb were “Plan” and “cause to move forward”.
Oxford Dictionary “A project is an individual or collective enterprise that is carefully planned to
achieve a particular aim”
ISO 10006: 2003, Quality
Management Systems
Guidelines for Quality
Management in Projects
“Project is a unique process consisting of a set of coordinated and controlled
activities with start and finish dates, undertaken to achieve an objective
conforming to specific requirements including constraints of time, cost and
resources”
British Standards Institute
BS 6079-1: Guide to Project
Management
‘Project is a unique set of coordinated activities, with defined starting and
finishing points, undertaken by an individual or organization to meet specific
objectives, with defined schedule, cost and performance parameters.’
Australian Institute of
Project Management
(AIPM): AIPM Professional
Competency Standards for
Project Management
‘A project is a temporary endeavor undertaken to create a unique product,
service or result in order to achieve an outcome.’

3. Definition of Project (Contd)
J. Rodney Turner: A
Handbook of Project Based
Management-Leading
Strategic Change in
Organization
‘A project is a temporary organization to which resources are
assigned to do work to deliver beneficial changes’.
Harold Kerzner: Project
Management: A Systems
Approach to Planning,
Scheduling and Control
“A project can be considered to be any series of activities and tasks that:
Have a specific objective to be completed within certain specifications
Have defined start and end dates
Have funding limits
Consume human and non-human resources (i.e. money, people,
equipment)
Are multi-functional (i.e. cut across several functional lines) “
A project is a set of interrelated investment activities to attain certain specific objectives
by utilizing limited resources within a particular period of time.
Investment activities
Specific objectives
Limited resources
A particular period of time

4. Characteristics of Project
 A single definable purpose, end-item or result. This is usually specified in terms of cost, schedule and performance
requirements.
 Every project is unique. It requires the doing of something different, something that was not done previously. Even in what
are often called “routine” projects such as home construction, the variables such as terrain, access, zoning laws, labour
market, public services and local utilities make each project different. A project is a one-time, once-off activity, never to be
repeated exactly the same way again.
 Projects are temporary activities. A project is an ad hoc organization of staff, material, equipment and facilities that is put
together to accomplish a goal. This goal is within a specific time-frame. Once the goal is achieved, the organization created
for it is disbanded or sometimes it is reconstituted to begin work on a new goal (project).
 Projects cut across organizational lines. Projects always cut across the regular organizational lines and structures within a
firm. They do this because the project needs to draw from the skills and the talents of multiple professions and
departments within the firm and sometimes even from other organizations. The complexity of advanced technology often
leads to additional project difficulties, as they create task interdependencies that may introduce new and unique problems.
 Projects involve unfamiliarity. Because a project differs from what was previously done, it also involves unfamiliarity. And
oft time a project also encompasses new technology and, for the organization/firm undertaking the project, these bring
into play significant elements of uncertainty and risk.
 The organization usually has something at stake when undertaking a project. The unique project “activity” may call for
special scrutiny or effort because failure would jeopardize the organization/firm or its goals.
 A project is the process of working to achieve a goal. During the process, projects pass through several distinct phases,
which form and are called the project life cycle. The tasks, people, organizations, and other resources will change as the
project moves from one phase to the next. The organizational structure and the resource expenditures build with each
succeeding phase; peak; and then decline as the project nears completion.

5. What is Project Management?
Project management is the application of processes, methods, knowledge, skills and
experience to achieve the project objectives.
A project is a unique, transient endeavour, undertaken to achieve planned objectives,
which could be defined in terms of outputs, outcomes or benefits. A project is usually
deemed to be a success if it achieves the objectives according to their acceptance
criteria, within an agreed timescale and budget.
A key factor that distinguishes project management from just 'management' is that it
has this final deliverable and a finite timespan, unlike management which is an ongoing
process. Because of this, a project professional needs a wide range of skills; often
technical skills, and certainly people management skills and good business awareness

6. Project Cycle
There tends to be a natural sequence in the way projects are planned and carried out and this sequence
has come to be known as the Project Cycle. Seven stage process through which practically every major
project goes through:
1. Identification Stage where one project-idea out of several alternatives is chosen and defined.
2. Preparation &
Analysis
Defined idea is carefully developed to the appraisal stage.
3. Appraisal
Every aspect of the project idea is subjected to systematic and comprehensive
evaluation, and a project plan is prepared.
4. Presentation/
Approval
Detailed plan is submitted for approval and financing to the appropriate entities.
5. Implementation
With necessary approvals and financing in place, the project plan is
implemented.
6. Monitoring At every stage the progress of the project is assessed against the plan.
7. Project
Evaluation and After completing the project, evaluation is done.

7. Identification
Appraisal
Formulation
Approval
Implementatio
n
Monitoring
Evaluation
Project
Cycle

8. Project Development Cycle/Project life Cycle
1. Concept or
identification
In the concept or identification phase, the public sector manager
evaluates an idea.
2. Definition or
preparation
In the definition or preparation phase, it elaborates and refines the
concept and does some initial work to define the components that
make up the project.
3.
Prefeasibility,
Feasibility and
financing
The prefeasibility and feasibility phases comprise a more analytical
exercise in which the viability of the project is examined from
different points of view and the project is planned in detail. These
two phases of the project cycle taken together mainly constitute
the process of evaluation or appraisal of the project.

9. Project Development Cycle/Project life Cycle
4. Detailed
design
In the next phase of detailed design, the physical design of the
project is completed and the plan for administration, operations, and
marketing is finalized.
5.
Implementatio
n and
monitoring
The bulk of the actual work on the project is, of course, accomplished
in the implementation phase. Finally, a critical evaluation of the
project’s outputs and outcomes is conducted in the last phase. As the
project moves through its life cycle, the focus of managerial activities
shifts from planning to operating and controlling the activities.
6. Ex-post
appraisal and
impact
evaluation
Finally, a critical evaluation of the project’s outputs and outcomes is
conducted in the last phase. As the project moves through its life
cycle, the focus of managerial activities shifts from planning to
operating and controlling the activities.
The project development cycle is a continuous and dynamic process and there is a great deal of overlap,
interaction and feedback among the various phases. Many of the activities are interrelated and cannot be
confined to one particular phase.

10. Development project: Key Agencies
Agencies Roles
Executing Agency Ministry/ Department/
Directorate
Identification, Preparation, processing, Initiation,
Planning, Implementation, closeout
Sponsoring Ministry Relevant Ministry Examine, Ownership, Approval
Finance Ministry 1. Finance Division
2. ERD
1. Project personnel, Fund, Budget, Fund release
2. Foreign Aid/ Development Partners
Planning Ministry 1. Concerned Sector
2. Programming Division
3. Planning Division
4. IMED
1. Appraisal/Evaluation/Recommend
2. Approval/Allocation in the ADP
3. Administrative Functions
4. Cost Rationalization/ Monitoring and Evaluation
Bangladesh Bank
CAO/ FAPAD
Foreign exchange/ Special Accounts
Accounts/ Auditing
Development Partners Foreign Aid ( Grant + Loan)
Law Ministry Vetting on Contract

11. Functions of Line Ministries with respect to development administration
Agency Prepares DPP/TPP
in line with FYP/SDGs
Objectives
Ministry scrutinizes DPP/TPP
TPP up to Tk. 10 Cr approved by
Minister in charge of LM
TPP more than Tk. 10 Cr
approved by Planning Minister in
charge
DPP up to Tk.50 Cr approved by
Planning Minister in charge
DPP more than Tk.50 Cr
approved by ECNEC
• Agency proposes names
of PD
• PD implement the project
• Reports to Ministry &
IMED of implement
status
• Proposes ministry for
fund release
• Follow delegation of
financial power for
activities
• Follow PPA & PPR for
procurement
• Prepare project
completion report
• Liaison with PC, IMED, FD,
• Appoints PD
• Do fund release
• Conduct ADP review
meeting monthly
• Approves proposal
based on delegation of
financial power
• Approves procurement
recommendations
based on PPA & PPR
• Make coordination with
PC, IMED, ERD, FD: PC IMED ERD FD

12. Major types of Projects based on proposals
Depending on the nature of objectives and mode of financing, projects are generally
categorized into three major groups:
A. Investment Project
1.GoB funded (100%)
2.DP funded (100%)
3. GoB, DP jointly funded
3. Autonomous Organizations funded
B1. Technical Assistance Project:
1. DP funded
2. Both DP & GoB funded TA projects
C. Survey/Feasibility Study Project (PFS)
B2. Technical Project
1. GoB funded
2. Autonomous organizations funded

13. Investment Projects
These types of projects generally involve huge amount of capital investment from either
local or both local and foreign sources for development of physical or socio-economic
infrastructures.
Examples of investment projects:
• construction of buildings,
• roads,
• bridges,
• culverts,
• power plants,
• ports, and so on.

14. Technical Assistance (TA) Projects
These are invariably foreign aided project where donor’s assistance constitutes the cost of
project either wholly or partly. TA projects cover mainly 3 areas:
A. Institutional capacity building: through
supply of equipment for improving technical
skills, setting up of information systems, etc.
B. Transfer of Knowledge, Technology Skills
and Technical Know-how: e.g. consultancy
services for undertaking research studies,
Preparation of design, Project preparatory
works, setting up of new systems.
C. Human Resources Development: e.g.
Arrangement of local training facilities,
fellowships for higher learning, assistance to
workshops, seminars, financing of study tours
or establishment of training institutions.

15. Project Proposal for Feasibility Study (PFS)
Any investment project estimated expenditure more than 50 crore, should have
a feasibility study.
Executing Agency will prepare the Survey/Feasibility
Study project using the given format.
Up to 5 Cr. Tk. PFS will be approved by the
concerned Minister on the basis of the
recommendations of the DPEC.
More than Tk. 5 Cr. but less than 50 Cr. funded PFS
will be approved by the Minister of planning on the
basis of the recommendations of the PEC.
More than Tk. 50 crore funded PFS will be approved
by the ECNEC, recommended by PEC.

16. Project Pro-forma
Project proforma is the basic document for placing required information of a certain
project in a prescribed format in order to get approval by the appropriate government
authority.
Four types of proformas are used in government sector project formulation:
Investment Project
Development Project Proforma (DPP) for original Investment
Project and Revised Development Project Proforma (RDPP) for
revised investment projects
Technical
Assistance
(TA) Project
Technical Assistance Project Proforma (TAPP) for
original TA Project and Revised Technical Assistance
Project Proforma (RTAPP) for revised TA projects
For foreign assistance PDPP (Preliminary Project Proforma/Proposal) for Aided Projects.
For Survey/ Study Proforma for Study/Survey Proposals (PFS)
TPP or RTPP for
Technical projects
funded by GoB

17. Types of Projects based on output produced
1. Type X Project
Self financing project i.e. project which earn revenue through sale of
output (goods and services). These are called directly productive
projects. Example: Industrial projects
2. Type Y Project
Indirectly productive but non-revenue earning project i.e. project which
give rise to tangible output, benefit of which do not accrue directly to
project themselves but to other parties. Examples: Irrigation projects,
road, bridges etc.
3. Type Z Project
Service sector projects. Projects which do not give rise to tangible
output but provide service benefits to the society. Examples: Schools,
colleges, Hospitals, training institutes etc.

18. Projects Approval Process-
Investment Projects

19. Project Planning (investment Project)
Steps involved in Investment Projects Processing/Approval Process
Generation of Project idea from sectoral Plans/Five Year Plan
Formulation of Development Project Proposal (DPP) by
Executing Agencies
Ministries Scrutinize the DPPs
Sector Divisions of the Planning Commission Appraise the DPPs
Project Evaluation Committee (PEC) Recommends for Approval
Minister for Planning Approves Project
Costing up to Tk. 50 crore
Approved projects listed into ADP for implementation
ECNEC approves Projects costing over Tk.
50 crore

20. Investment Project
Activities Responsible
Agency/Ministry
Timeframe
Preparation of DPP and sending it to the
sponsoring ministry.
Implementing Agency
Checking and appraising of the DPP by
the Scrutiny Committee of the ministry
and sending it to the Planning
Commission.
Sponsoring Ministry 1. Within 7 working days after standing
committee meeting if recast is not
necessary.
2. Within 10 working days if standing
committee recommends for recast of DPP.
Appraising of DPP by the concerned
sector of the Planning Commission and
placing it with their observation before
the PEC meeting for consideration.
Concerned Sector Division of
Planning Commission.
Within 30 working days after receiving
DPP at the Planning Commission.
Sending Recast DPP to the Planning
Commission
Sponsoring Ministry Within 15 working days after receiving the
proceedings of PEC Meeting.

21. Investment Project
Activities Responsible
Agency/Ministry
Timeframe
Submitting the Recast DPP for approval to
the Minister in charge of Planning
Ministry (if Project cost <= Tk. 50 Cr. ) or
to the ECNEC (if Project cost > Tk. 50 Cr.
Concerned Sector Division/
ECNEC wing of Planning
Commission.
5 working days after
receiving Recast DPP.
Circulation of approval letter Concerned Sector Division/
ECNEC wing of Planning
Commission.
3 working days of
approval.
Circulation of Administrative Order (AO) Sponsoring Ministry 3 working days of
receiving the approval
letter.

22. Investment Project Approval
Executing Agency
Sponsoring Ministry
PSC: Examines & Recommends
•Identify Project
•Prepare DPP
• Recast DPP
Finance Division: Post, category &
No. of personnel required
Planning Commission
OK Not OK
Recommendation
10 days/ 20 sets

23. Investment Projects (DPP): Preparation & Processing
Preparation
Executing
Agency (EA)
Project Identification
Feasibility study
DPP Preparation as per guidelines
Head of the EA held
responsibility for the
accuracy of information
provided in the DPP
Processing
DPP scrutiny by the PSC on the basis
of set guidelines
Evaluation by the DPEC
Recommendation on post, category, and no
of personnel required for the project
Accommodate FD's recommendation, if
needed
PC appraisal on the basis of set guidelines
PEC : Recommendation
Sponsoring
Ministry
Sponsoring
Ministry
Finance Division
Concerned
sector of the
Planning
Commission
Minister
PEC is headed by the concerned
member
PSC is headed by the
Concerned Secretary
DPEC is headed by the
Concerned Secretary
AFD heads this committee
Cost rationalization by
the IMED, if needed

24. DPP: Approval and Implementation
Approval
Implementation
Project cost more than TK 500 million
Issue administrative order to CAO
Request concerned sector of the Planning
Commission for allocation in the ADP/RADP
Allocation in the ADP/RADP
Approval of Expenditure Breakup
Fund Release
Implementation
Planning Division
Sponsoring Ministry
ECNEC
Project cost up to TK. 500
million
Planning Minister
Project Office
Communicate
to
Appoint Project Director
Request
for
expenditure
breakup
and
fund
release
Establish project office/PMU
Formation of SC and
PIC
Progress
Programming
Division/IMED
Monitoring
Evaluation
PEC recommendation

25. Technical Assistance Project (TAPP): Preparation & Processing
Preparation
Executing Agency
(EA)
Project Identification
TPP Preparation as per guidelines
Head of the EA held responsibility for
the accuracy of information provided
in the TPP
Processing
TPP scrutiny by the PSC on the basis of set
guidelines
Evaluation by the DSPEC
PC appraisal on the basis of set guidelines
SPEC Recommendation
Sponsoring
Ministry
Concerned sector of
the Planning
Commission
Up to TK 100 Million and GoB less
than 30%
approve by the Minister
SPEC is headed by the concerned
member
PSC is headed by the
Secretary
DSPEC is headed by the
Secretary
More than TK 100 Million or GoB more than
30%
More than TK 100 million but less than Tk
500 million approve by the Planning
Minister
Approval
More than TK 500 million approve by the
ECNEC

26. Technical Assistance Project (TAPP): Implementation
Implementation
Issue administrative order to CAO
Request concerned sector of the Planning
Commission for allocation in the ADP/RADP
Allocation in the ADP/RADP
Expenditure Breakup
Fund Release
Implementation/ Expenditure incur
Sponsoring Ministry
Project Office
Appoint Project Director
Request
for
expenditure
breakup
and
fund
release
Establish project
office/PMU
Formation of SC and
PIC
Progress
Programming
Division/IMED
Monitoring
Evaluation

27. Roles and Responsibilities of Project Directors (PDs)
1. Manage all activities of the project.
2. Co-ordination among various components of projects.
3. Preparation of annual work plan.
4. Co-operation and co-ordination with Project Implementation Unit (PIU) and Project Steering Committee.

28. Important Documents for PDs
Preparation, processing, approval and revision
of Projects: Planning Division
Fund Release: Finance Division
Procurement Rules: CPTU, IMED

29. Project Revision Process
 Project Revision refers to making any change in the approved project
document which must get approval by the appropriate authority before
the revision taking into effect. It involves increase/decrease of cost of
project or cost of any item; inclusion of new component(s) or exclusion
of any existing item; changing project objectives etc.
General principles:
 Existing planning procedure strictly discourages Project revision.
 Approved projects can only be revised if sufficient and reasonable
grounds necessitate that.
 In no cases, a project can be revised more than twice.

30. Revision of Investment Projects
Causes of Revision Approving Authority of RDPP
A. For First Revision:
Increase or decrease of the total project cost (up to 15% or Tk. 40
crore whichever is lower) due to changes in cost/amount of project
item(s) subject to condition that objectives, mode of financing,
source of financing, project area, vehicles, manpower, consultants
remain unchanged and new item is not included.
Minister in charge of the Sponsoring
ministry upon recommendation of the
DPEC.
B. For 1st revision beyond the conditions stated in A and for 2nd
revision:
1) If the revised cost estimate is increased/decreased up to 25% or Tk
50 crore whichever is lower) of the originally approved cost.
2) Even if the rate of change is more than 25% in the revised cost
estimate but the total project cost is not exceeding Tk. 75 crore.
3) For any rate of reduction of the project cost
Minister in charge of the Planning Ministry
(upon recommendation of the PEC
meeting if required).
4) If the rate of change exceeds 25% and the total project cost is > 75
crore Taka
ECNEC
C. For special cases, if project has to be revised for 3rd time (in any
cause)
ECNEC with prior recommendation from
Planning Minister

31. Revision of TA Projects
Causes/ Conditions RTPPApproving Authority
A. If the 1st revised cost is
increased/decreased up to 25% or Tk.
20 crore (whichever is lower) of the
original cost keeping project
objectives, source of financing and
mode of financing, manpower and
vehicles unchanged.
Minister in charge of the Sponsoring Ministry upon
recommendation of the DSPEC.
If the revised cost estimate increase more
than 25% and / or objective is changed.
Minister in charge of the Planning Ministry (upon
recommendation of the SPEC meeting).
For all 2nd revision Planning Commission

32. Time Extension for Investment Projects
Conditions Approving Authority
If only extension of implementation period is
required keeping project objective, manpower,
consultancy services and cost unchanged.
Minister in charge of the Sponsoring
ministry has the authority of extend the
implementation period up to Maximum
One Year. IMED/ERD opinion needed
If the implementation period is required to be
extended for more than one year, proposal for
time extension should be sent simultaneously to
the Planning Commission and IMED at least 3
months before the completion of approved
implementation period.
Member of the concerned sector division of
the Planning commission upon
recommendation of the IMED.
• If “time extension” is required more than twice Hon’ble Planning Minister can approve
once.

33. Time Extension for TA Projects
Conditions Approving Authority
A. If time extension is required keeping
amount and cost of the originally
approved components unchanged
Minister in charge of the Sponsoring
ministry has the authority to extend the
implementation period for one year
but only once. Prior clearance from
ERD required.
B. 1st time extension because of beyond
A and 2nd time extension
Member of the concerned sector division
of the Planning commission.
C. For special cases, if time extension is
required for more than twice
Minister in charge of Ministry of
Planning

34. Thank you