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 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.
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4. 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.
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5. 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.
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6. 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
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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.
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8. 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.
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9. 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.
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10. 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.
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11. 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 .
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12. 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.
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13. Key issues in appraising projects
• Eligibility
– Regional Development
– Environmental protection
• Legal Frame Work
– Policies, public acceptance
– Licensing, safety
– Environmental compatibility
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14. 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
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15. Key issues in appraising projects
• Time Schedule
– Preparation of feasibility studies
– Environmental studies Licensing requirements
– Time needed for procurement
– Local conditions (climatic, etc)
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16. 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
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17. 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
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18. 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.
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19. 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?
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20. 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?
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21. 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
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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)
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23. 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
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25. 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
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26. 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
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27. 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
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28. 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?
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29. Environmental Appraisal
• Will the project have any adverse effect on the
environment?
• Have remedial measures been included the project
design?
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30. Ecological & Political Appraisal
Environmental Damage.
Restoration Measures.
Will the project be compatible with government policy, at
both central, regional and local level?
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31. 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 .
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