This will help on course project planning and analysis, to get further insight to the project.

1. Agricultural Project Planning Evaluation
and Analysis
Delivered to III year Students
Instructor’s: Deressa Bulcha chala
Jimma University.
E-mail: derresabulcha@gmail.com
Mobile no: 09 21435033
9/8/2021 Deressa Bulcha chala 1

2. CHAPTER 1
Concepts of Agricultural Projects
and Programs
2
9/8/2021 Deressa Bulcha chala

3. Concepts
• Project planning and analysis has a long history in financial and
business analysis.
• It has always been used as a means of checking the profitability of
a particular investment by private firms.
• Recent experiences show that project analysis has attracted the
attention of development economists.
• Projects are now assessed from the economy's viewpoint instead
of only from the firm's perspective.
3
9/8/2021 Deressa Bulcha chala

4. Concept cont’…
• Perhaps the most difficult problem confronting administrators in
developing countries is implementing development programs.
• Much of the failures can be traced to poor project preparation.
• Unless projects are carefully prepared in substantial details,
inefficient or even wasteful expenditure is almost sure to result –
– a tragic loss in nations short of capital be presented year-by-
year.
4
9/8/2021 Deressa Bulcha chala

5. What is a Project?
What do you think about the difference
between project and program?
Why agricultural project fail?
5
9/8/2021 Deressa Bulcha chala

6. Definitions
• The literal meaning of project is to mean plan, envisage, propose,
intend, anticipate, expect, plan ahead
 A project is a temporary endeavour undertaken to create a unique
product or service.
 Projects are parts of overall programmes and may be broken down
into tasks, sub-tasks, and further if desired (Mantel & Meredith, 2005)
• Project can be defined as an investment activity in which financial
resources are expended to create capital assets that produce benefits
over an extended period of time.
6
9/8/2021 Deressa Bulcha chala

7. Definition cont’…
• A project is a set of investments and of other planned activities
aimed at achieving specific objectives within a pre-determined
time-frame and budget (Baum & Tolbert, 1985).
• A project is a complex set of activities where resources are used
in expectation of return and which lends itself to planning,
financing and implementing as a unit.
• A project is a piece of planned work or activity which is
completed over a period of time and intended to achieve a
particular aim.
• It consumes resources.
– The resources required for completing a project are
human, material, money and time resource.
9/8/2021 Deressa Bulcha chala 7

8. Examples of a project may involve
8
 Projects can be large or small and involve one person or
thousands of people.
 They can be done in one day or take years to complete.
 Examples of projects:
 A college campus upgrades its technology infrastructure to
provide wireless Internet access.
 A construction company designs and constructs a new
office building for a client.
 A pharmaceutical company launches a new drug.
9/8/2021 Deressa Bulcha chala

9. Why to develop a Project ?
1. It is a vehicles for mobilizing and allocating resources to
development
2. It can be an effective means of translating development
plans and policies into specific courses of action …
The Minimum Requirement for developing a project is ?
• Project planning ( develop proposals funded)
– Is a discipline for stating how to complete a project within a certain
timeframe,
9
9/8/2021 Deressa Bulcha chala

10. Project Planning and Analysis
• Project planning and analysis is essentially a process of “seeking
alternative choices” to reach an agreed upon set of objectives in the
most efficient manner.
• A project can also be viewed as a “Proposal for capital investment to
create opportunities for producing goods and services”. Recently
defined a development project as follows:
– “Project can be defined as an investment activity in which financial
resources are expended to create capital assets that produce benefits
over an extended period of time.
– A project is a complex set of activities where resources are used in
expectation of return and which lends itself to planning, financing
and implementing as a unit. 10
9/8/2021 Deressa Bulcha chala

11. • Perhaps the distinction between projects and programs would
be clear if we see the basic characteristics of projects.
11
S – Specific
Specific in its objective.
Specific activities.
A specific group of benefits.
A specific group of people
M - Measurable
• Projects activities and benefits expected should be identified and
if possible be valued (expressed in monetary terms) in financial,
economic and if possible social terms.
The Basic Characteristics Of Projects.
9/8/2021 Deressa Bulcha chala

12. 12
A – Area bounded
• As projects have specific and identifiable group of
beneficiaries, so also have to have boundaries.
• In designing a project, its area of operation must clearly be
identified and delineated.
• Though some secondary costs and benefits may go beyond the
boundary, its major area of operation must be identified.
• Hence projects are said to be area bounded.
9/8/2021 Deressa Bulcha chala

13. 13
R – Real
• Planning of a project and its analysis must be made based on
real information.
• Planner must make sure whether the project fits with real
social, economic, political, technical, etc situations.
T – Time bounded
• A project has a clear starting and ending point.
• The overall life of the project must be determined.
• Moreover, investment and production activities have their own
time sequence.
9/8/2021 Deressa Bulcha chala

14. Classification of Projects
• The classification of projects varies according to a number of
different factors such as:
– Its Complexity, source of capital, its content, those
involved and its purpose
– The location, type, technology, size, scope and speed are
normally the factors which determine the effort needed in
executing a project.
14
9/8/2021 Deressa Bulcha chala

15. • According to complexity
• Easy: A project is classified as easy when the
relationships between tasks are basic and detailed
planning or organizations are not required
• Complicated: The project network is broad and
complicated
• According to source of capital
• Public: Financing comes from Governmental
institutions
• Private: Financing comes from businesses or private
incentives
• Mixed: Financing comes from a mixed source of both
public and private funding 15
Classification a Project cont’…
9/8/2021 Deressa Bulcha chala

16. • According to project content
– Construction: These are projects that have anything to do with the
construction of a civil or architectural work.
– IT: Any project to do with software development, IT system etc.
– Business: These projects are involved with the development of a
business,
• management of a work team,
• cost management, etc., and usually follow a
commercial strategy
– Service or product production: those involved with the
development of an innovative product or service,
– They are often used in the R & D department.
16
Classification a Project cont’…
9/8/2021 Deressa Bulcha chala

17. • According to those involved
– Departmental: When a certain department or area of an
organization is involved
– Internal: When a whole company itself is involved in the
project’s development
– Matriarchal: When there is a combination of departments
involved
– External: When a company outsources external project
manager or teams to execute the project.
17
Classification a Project cont’…
9/8/2021 Deressa Bulcha chala

18. • According to its objective
– Production: Oriented at the production of a product or service
taking into consideration a certain determined objective.
– Social: Oriented at the improvement of the quality of life of
people.
– Educational: Oriented at the education of others.
– Community: Oriented at people too, however with their
involvement.
– Research: Oriented at innovation and the gaining of
knowledge
18
Classification a Project cont’…
9/8/2021 Deressa Bulcha chala

19. Programs
• A program is “a group of related projects managed in a coordinated
way to obtain benefits
• A program resembles a project in that it is a set of activities designed to
facilitate the achievement of specific objectives but on a large scale and
over a longer time frame.
• A construction firm has programs for building single-family homes,
apartment buildings, and office buildings.
– Each home, apartment building, and office building is a separate
project for a specific sponsor, but each type of building is part of a
program.
19
9/8/2021 Deressa Bulcha chala

20. • There would be several benefits to managing these projects
under one program. Eg.
– For the single family homes, the program manager could try to
get planning approvals for all the homes at once, advertise them
together, and purchase common materials in bulk to earn
discounts.
20
Program cont’…
9/8/2021 Deressa Bulcha chala

21. Program cont’…
21
It is necessary to distinguish between projects and programs because
there is sometimes a tendency to use them interchangeably.
A project is an investment activity where resources are used to
create capital assets, which produce benefits over time and has a
beginning and an end with specific objectives.
A program is an ongoing development effort or plan which may not
necessarily be time bounded.
Examples
a road development program,
a health improvement program,
a nutritional improvement program,
a rural electrification program, etc.
9/8/2021 Deressa Bulcha chala

22. • A development plan or a program is a wider concept than a project.
– It may include one or several projects at various times whose
specific objectives are linked to the achievement of higher level of
common objectives.
– For instance,
• a health program may include a water project as well as a construction
of health centers both aimed at improving the health of a given
community, which previously lacked easy access to these essential
facilities.
• Projects, which are not linked with others to form a program, are
sometimes referred to as “stand alone” projects.
22
9/8/2021 Deressa Bulcha chala

23. The difference and similarities between projects and
programs are:
Project Program
Difference
 Is specific in objectives/purpose
 Has specific area/geographic
unit,
 Has specific target groups
 Has clearly determines and
allocated fund
 Has specific life span
 Rigorously detailed
 Has general objectives
 May not have specific area
 Many not have specific target
groups
 May not have clear and detailed
financial allocation
 May not have specific time of
ending
 Less detailed
Similarities
 Both have objectives which they are trying to pursue,
 Requirement of resources ( financial, manpower, material, etc)
 Both generate an output ( goods, services, skills etc)
 Vehicle for execution of development plan
 Operate over space and time
23
9/8/2021 Deressa Bulcha chala

24. 24
Program Hierarchy
9/8/2021 Deressa Bulcha chala

25. Why do developmental projects fail?
The reasons for the failure of projects could be:
 A lack of local ownership and responsibility, i.e. participative planning and
development.
 Problems of project design and implementation.
 The use of inappropriate technology, cropping systems and animal
husbandry.
 Inadequate or inappropriate infrastructure.
 Failure to appreciate the social and political environment.
 Administrative problems.
 Changing economic situations and market conditions.
 Externally driven project initiatives.
 Problems related to poor project analysis.
 Unrealistic expectations.
 Unsupportive policy environment
25
9/8/2021 Deressa Bulcha chala

26. End of Chapter One
26
9/8/2021 Deressa Bulcha chala