PROJECT DEVELOPMENT CYCLE

Sophremiano B. Antipolo, PhD, EdD, CES

Professorial Lecturer
PROJECT
DEVELOPMENT
CYCLE

Source: NEDA’s Project

Devt Manual
Ppt Version: S.B. Antipolo
 Project Development Cycle

Pre- Invest Post-

Invest ment Invest
ment Phase ment
Phase Phase

Feedback
 Detailed Project Devt Cycle (Version
1)
(1)
PROJECT
IDENTIFICATION

(7) (2)
PROJECT PROJECT
EVALUATIO PREPARATIO
N N

(6) (3)
PROJECT PROJECT
APPRAISAL
MONITORIN AND
G FINANCING

(4)
(5) DETAILED
PROJECT
PROJECT
IMPLEMENTATION
ENGINEERING
 Detailed Project Devt Cycle
(Version 2)

Pre-Investment Investment Post-

Phase Phase Investment
Phase

Project Detailed Ex-post

Project Project Appraisal Project Project Project Project
Identificati Preparatio and Engineerin Implementation Operation Evaluation
on n financing g

Feedback
I. Pre-Investment Phase

1.1Project Identification
1.2Project Preparation
1.3Project Appraisal and
Financing
2. Investment Phase

2.1Detailed Engineering /
Designing
2.2Project Implementation
3. Post-Investment Phase

3.1Project Operation
3.2Ex-post Evaluation
DETAILS FOR EACH PHASE
1. PRE-INVESTMENT PHASE
1.1 Project Identification

• It is the logical start for a Project.

• It is the process of searching for potentially
rewarding investments that will eventually be
subject to the tests of a feasibility study.
• These may be identified from national plans,
sector surveys, industry studies, regional
development schemes, technical packages,
etc.
• The initial project idea can also come directly
from the people affected or from government
field offices and planning units, the private
sector, or elected or appointed officials.
• Regardless of origin, projects identified should
be in support of the development goals and
objectives of the country.
 1.2 Preparation
Project preparation is the stage wherein
overall feasibility of an identified project is
established.
When a project is found feasible, it is now
ready for appraisal and financing.
Interchangeably used with the term
“feasibility study,” project preparation
basically involves the investigation of the
market, technical, financial, economic, and
operational viability of the project.
• Specifically, the feasibility study looks into
alternative technical schemes to attain the
project’s objectives including possible size,
location, production process, and physical and
financial resource requirements.
• The study also determines whether the project
would generate sufficient benefits to offset
estimated investments and operating costs.
 1.3 Appraisal and
Financing
Once a project is found feasible in all
respects, the next step is to secure
financing for the project.
This calls for an appraisal of the project
both by those responsible for deciding
on its implementation and those from
whom financing is sought.
The appraisal consists of a critical
review of all aspects of the project that
should have been thoroughly explored
during the preparation stage.
Details of the project are re-examined to
ensure that all the elements influencing
its feasibility are adequately covered.
Assumptions made in the feasibility
study are assessed, basic statistics
sought, and techniques of analysis are
reviewed.
The engineering features of the project
are tested for soundness; and
organizational schemes for project
implementation, operation, and
maintenance are scrutinized.
2. INVESTMENT PHASE
 Investment or
Implementation Phase
 To ensure that the Project is implemented as planned
and scheduled, a project execution system must be
established.
 The system must be designed to anticipate problems
and resolve them as soon as they occur.
 Monitoring and supervision start from the time that
detailed designs are made and carried on through
actual project implementation.
 The lending institution, if any, may also be closely
involved in project supervision to ensure that the
proceeds of the loan are used to carry out the project
at the least cost and according to schedule.
 For some projects, the existing organizational structure
of the implementing agencies, adequately
strengthened if required by the purpose, may provide
the necessary capabilities for efficient project
management.
 For projects that are of exceptional magnitude and
complexity, the creation of special project management
office (PMO) may be necessary to provide full-time and
closer supervision over all aspect of implementation.
 The project management system should provide the
decision makers with up-to-date information on the
progress of work and the quality of performance under
the project, thereby enabling them to take steps for its
timely completion.
3. POST-INVESTMENT PHASE
 3.1 Project Operation

• A project reaches the operation stage after investments

have been made, i.e., after the physical structure has
been constructed or the plan has been installed in the
case of infrastructure projects, and / or the development
services have been completed; in other words, when
the expected project benefits start being generated.
 3.2 Ex-Post Evaluation

Sometime during or after the project’s

operation, ex-post evaluation is undertaken to
investigate: a) the project’s performance; and
b) its direct and indirect impact on the
development goals.
Ex-post evaluation seeks to determine
whether projections made during the project
preparation stage regarding costs, benefits,
and other aspects of implementation have
been or show promise of being realized and if
so, to what extent.
When any divergence between projections
and actual experience emerges, the causes
are determined and analyzed.
With respect to the project’s direct and
indirect impact on development goals, ex-
post evaluation involves investigation into
the possible impact of the project on various
development goals including those which
may not be directly addressed by the project.
THE END