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Lecture 2 - Project Appraisal (Cost Benefit Analysis) With Application

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6 views

Lecture 2 - Project Appraisal (Cost Benefit Analysis) With Application

Uploaded by

Ēuobédà Rîyàdh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Project Appraisal/Evaluation

Cost Benefit Analysis (CBA)


What is Planning ?

A dynamic process, a method of analysis and


thinking which may or may not involve the
Preparation of Comprehensive lengthy blue print
for social and economic development

2
What is Plan?

A package of social and economic policies


expressed with quantified targets and objectives
to be achieved during a laid down period.

3
Planning Objectives

 Promote people Welfare


 Provide adequate living standard and social
services

 Secure social justice


 Equality of opportunity to all
 Most equitable distribution of national wealth

4
Types of Plans

 Perspective Planning

 Medium Term Plan

 Roll on Plan

 Annual Plan

5
The Project

 It is an activity which has


 a specific starting point
 a specific ending point
 intended to achieve a specific objective

 A project may refer to an investment on which


resources are used to create assets that will
produce benefits over an expanded period of
time.
6
The Programme

 A Programme is defined as a group of


related projects managed in a
coordinated way to obtain benefits not
available from managing the projects
individually.

7
WHO IDENTIFY THE PROJECT
 HOW THE PROJECTS ARE
IDENTIFIED
 To meet the unsatisfied Demand.
 Exploitation of unused Resources.
 Application of Technology.
 Goal Approach.
 The strategy approach.
 Comparison with other countries.

9
Introduction
• Government has limited resources and has to
undertake several Development Schemes/Projects
• Government has to decide about the selection of a
project
• To make a decision about the selection of the
project/ scheme Government needs a set of practical
procedures for guiding public expenditure decisions
Introduction (Cont..)
• Projects/Schemes that government decide to
undertake are part of its development budgets.
– Public Sector Development Plan (PSDP)
– Annual Development Plan
• There are 28 sectors in PSDP and categorize as:
– Production Sector
– Infrastructure Sector
– Social Sector
Project Cycle
• Project Cycle includes following steps:
– Project Identification
– Project Appraisal
– Project Approval
– Project Implementation
– Project Monitoring & Evaluation
Project Cycle
Identification

Evaluation Preparation

Monitoring Appraisal

Implementation Approval

13
Project Cycle (Cont…)
Project Approving Authorities
• Following are the project approving
authorities working at various levels:
– Executive Committee of National Economic
Council (ECNEC)
– Central Development Working Party (CDWP)
– Departmental Development Working Party
(DDWP)
– Provincial Development Working Party (PDWP)
Sanctioning Power of the Approving
Forums
Financing of Development Projects
Financing of Development Projects
Sectoral Priorities (Historical Perspective)
Types of Analysis
• Financial Analysis
• Economic Analysis
• Sensitivity Analysis
• Unit Cost Analysis

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