This document discusses project cycle management for sustainable economic development in Iceland. It outlines the key stages in the project cycle including programming, identification, preparation, implementation, evaluation. It emphasizes the roles of managing authorities and intermediate bodies in coordinating project preparation, ensuring quality, and prioritizing projects. Sound project design, management, ownership and sufficient capacity are identified as critical success factors. Quality assurance, risk management, and time management are also highlighted as key elements of effective project cycle management.

1. Sustainable Economic Development of the Sudurnes
region, Iceland
Introduction Project Cycle Management
JOSE MATEOS MORENO
Ásbrú, January 2012

2. The Project Cycle
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3. Programming
National Strategy
Programming
Preparation of OP
Finance
Negotiations with
EU
Role MA and IBs: Coordination of Preparation of OP
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4. Project identification
Project awareness:
Project generation of
identification projects
Project
development
Project prioritization
and eligibility check
Project design (1st)
Role MAs and IBs: Creating awareness for project
generation
Quality Assurance of project proposals
Project prioritization and eligibility checks
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5. Project preparation and appraisal
Technical feasibility
Project appraisal
Economic
Feasibility
Cost Benefit
Analysis
Environmental
Impact Assessment
Role IBs: Procurement and Quality Assurance of
Feasibility Studies and EIA
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6. Implementation
Procurement
Implementation
Contracting
Managing and
supervision
Monitoring
Financial
Management
Testing and Closure
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7. Evaluation
Ex-post evaluation
Evaluation
Lessons new OP
Auditing
Implementation of
recommendations
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8. Key success factors for projects
• Sound project design – Quality Assurance
• Good Project management (including risk and
time management)
• Appropriate Technology
• Ownership by Beneficiaries
• Policy Support
• Sufficient administrative and institutional
capacity
• Economic and Financial viability
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9. Key elements of PCM
Quality Assurance:
• Sound project design with use of LFA approach
(with problem and objective tree, assumptions,
indicators)
• Clear focus on project purpose for the target group
• Good quality key documents for each phase in
PCM
• Consulting and involving all relevant stakeholders
• Use of analytical tools/studies to achieve good
quality projects
Risk Management: a strategy to minimize
problems/risks
Time Management: clear timetables
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10. Factors for Quality Assurance and Risk
Management: MAs and IBs
• Quality appraisal for project proposals
• Project prioritization and eligibility checks
• Feasilibility studies/ CBA and EIA
• Administrative capacity assessment and
Human Resources policies
• Monitoring and risk management strategies
• Internal Control and Audits
• Providing Systems and Tools (procedures,
guidelines, checklists, MIS etc)
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11. Factors for Sound Time Management in
Project Cycle Management (a)
• Prepare good planning charts including
each task in the relevant PCM stage
• Identify the key deadlines
• Identify the key risk factors influencing the
achievement of those deadlines
• Use a systematic approach to identify the
critical path
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12. Factors for Sound Time Management in
Project Cycle Management (b)
• Allocate clear responsibilities for
managing time, particularly for activities on
the critical path
• Allow time for Quality Assurance,
agreement and decision making
• Commitment / ownership of stakeholders
to deadlines
• Have a Risk Management Strategy to
prevent or minimise delays
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