Guidelines for Project Management Planning Wing Planning Commission Government of Pakistan

Project Management Policy Utilize Natural and Economic Resources for Socio-Economic Welfare of the people Achievement of targets and tangible returns Supervision of Projects by competent persons and professionals Project Director- Focal person

Project Management Policy In case of Mega Projects – Consultants can be hired or other agencies Projects are executed as per approved TORs, conditions, scope, targets and time frame. Project Director submit reports on approved performs by Planning wing Project Wing put all reports on PMES

Project Management Life Cycle Five Phases Identification and Formulation Appraisal and Approval Implementation Completion Ex-post Evaluation

Project Identification In Pakistan projects are identified by Ministries, Departments, Locals, Community, Corporations etc… Projects are prepared on PC-1 Performa For Mega Projects (above 300 million) feasibility report is required Production Sector Social Sector Infrastructure Sector

Project Identification For Feasibility PC-II Performa is submitted for approval Based on feasibility PC-I is prepared and submitted for approval to relevant forum Approval Authority Cost Limit Departmental Development Working Party (DDWP) Up to 40 m Central Development Working Party (CDWP) Up to 500 m Executive Committee of National Economic Council (ECNEC) Above 500 m Provincial Development Working Party (PDWP) 5000 m Corporation and Autonomous Bodies No Limit

Project Identification & Preparation Identify Inputs, outputs, targets, outcome. Sustainability after the completion of project Viability of project in terms of Economic and Financial indicators Principal Accounting Officer signed the PC-I and submit for approval

Project Appraisal & Approval Project Assessment by Authorities Review of financial, Social and Economic aspects Review of work plan, data, conditions, justification of project, requirement Availability of Resources Also review Net Present Value, Future Value and Internal Rate of Return

Project Authorization Sanctioned DDWP Ministry/Division CDWP P & D Division ECNEC After approval of Project concerned Ministry issued the Administrative Approval Project starts the day the Administrative Approval is issued

Approved by Government Project Activation Hired Above 100 million Cost Project Director Otherwise Additional Charge To be Given Pay Package Approved by Government notification Project Allowance

Delegation of Power Project Director has full financial and administrative powers PAO (Principal Account Officer) delegate the Financial and Administrative powers if required

Allocation of Funds To receive the funds from Ministry of Finance, project should be included in PSDP (Public Sector Development Projects) of current fiscal year. Funds are allocated according to Work Plan submitted by Project Director Funds are released in four installments based on Cash Plan

Project Implementation Hiring of Staff as proposed in PC-1 Project Director is hired by PAO Project Director is responsible for hiring of project staff No approval is required from any forum if TORs are provided in PC-1 According to Work Plan, equipment is purchased and civil work is started

Financial Management Project Director is responsible for utilization of funds according to TORs and provision in the PC-1 However PAO (Principal Account Officer) is answerable to Public Account Committee (PAC) in terms of efficient and economical conduct

Re-appropriation within Project Cost Funds are released based on Cash/Work plan of the project. Project Director utilize the funds according to TORs However, sometime re-appropriation is necessary in case of inflation in material, supplies or any government imposed duties on certain items.

Re-appropriation within Project Cost Funds are allocated in accordance to Cash/Work plan as submitted by PD to P&D Funds are distributed according to defined budget heads in the project and PD has to strictly follow. However, in various circumstances, re-appropriation could be made within the Cost of the Project.

Re-appropriation within Project Cost Re-appropriation is made with the approval of PAO The actual cost of the project is un-changed Budget Head cannot be created without the approval of concerned forum. PAO has power to move funds from one budget head to other with proper justification

Re-appropriation within Project Cost In certain circumstances; consent of the Financial Advisor/Finance Division is pre-requisite: From Development to Current expenditure Employee related expenses Lump-sum provision for expenditure included in grant may not be re-appropraited

Re-appropriation within Projects Re-appropriation is not allowed from development Project to other development Project If necessary, in the Mid Year Review Meeting a summary/proposal could be submitted to Planning Commission for transfer funds from slow projects to fast moving projects.

Project Monitoring The monitoring process or procedure helps to remove the bottle necks, identify the errors and check and balance, The project monitoring is based on time intervals and should be performed on regular basis Monitoring has two types “Internal Monitoring” and “External Monitoring”

Project Monitoring Internal Monitoring External Monitoring Internal Monitoring Cell External Monitoring Cell Internal Monitoring is performed by Concerned Ministry/Organization External Monitoring is performed by Provincial Planning & Development Departments

Monitoring Methodology Monitoring techniques or methodology should be adopted in view of time schedule, scope & targets, cost and performance P&D has introduced new concept of Result Based Monitoring, which consist of the elements, Input, Output and Outcome,

Monitoring Phases Monitoring based on three phases. Starting Phase Investment/Execution Phase Completion/Operating Phase

Starting Phase In this the following measures to be taken; Preparation of PC-1 Feasibility Analysis Issuance of Administrative Approval Hiring of Staff Preparation of Cash/Work plans

Execution Phase In this the following measures to be taken; Progress in all major areas Errors and Bottle necks identification Corrective Actions Review Meetings Significant deviations from original plan

Operating Phase In this the following measures to be taken; Outcome measures Output measures Completion Reports Evaluation Report