NEPAL ADMINISTRATIVE STAFF COLLEGE Project Appraisal: Group Works Advanced Course on Project Management for Class II Technical Officers of GoN Instructions for Project Appraisal: Group Works 7 December 2018

Project Appraisal ? Evaluation of overall assessment of project’s likelihood for success. Done after the feasibility study of the project has been completed. Basic aim is to consider and compare the possible feasible projects, and to select the best one. In most of the cases appraisal criteria are set and communicated. Appraisal team is formed from different background ©NASC, 2018 7 December 2018

Rationale of Appraisal- Why? Imbalance between need and means Selection of best project that meets the objectives Optimal use of available resources Discard unfeasible projects Contribute to achieve the goal of development plan and programmes Getting acceptance of concerned stakeholders Showing relevancy of project than others An integral part of overall project cycle management. ©NASC, 2018 7 December 2018

Scope of Project Appraisal I. Project Background and Rationale Appraisal should focus on: In which context project has been prepared and proposed for financing. What is the rationale ? How relevant the proposed project is ? What is the possibility of addressing the problem and achieve the desired state of affairs ©NASC, 2018 7 December 2018

Project’s Goal and Objectives How compatible the project goal is in accordance with the national priority? How the project can contribute to achieve development goals of the nation ? Are the objectives in line with the overall goal of the project? Do they really help to achieve the project’s goal? Are there any contradictions between the objectives ? Do they fulfill the criteria of good objectives?(SMART) ©NASC, 2018 7 December 2018

Demand and Market Aspects Demand aspect should focus on : Does the demand express a real need or only demanded for the benefit of certain group? What is the demand size ? What sources of data and techniques are used in analyzing the demand? What is the plan of project to address the demand, possibility of addressing the demand? What are the strategies for surplus deficit demand? ©NASC, 2018 7 December 2018

Market Aspects Appraisal should focused on: Market size and sales forecast Market coverage strategy Ability to satisfy customers Competition and strategy to deal with competitors SWOT analysis of competitors Distribution and promotional strategies Marketing plan ©NASC, 2018 7 December 2018

Technical Aspects Critical aspects to be reviewed are: Investment cost and operational cost Environmental aspect of technology( Possible environmental harms) Size and scale of operation Appropriateness of technology(proven or tested) Equipment capacity and suitability as per requirement Fitness with existing organizational environment Operatability of technology ©NASC, 2018 7 December 2018

Institutional and Management Aspects Organizational history Governance system Organizational experience Management capabilities and limitations Past experience in the field of proposed project Institutional linkages Physical and financial strength ©NASC, 2018 7 December 2018

Financial Aspects Initial investment and sources of financing Participation in initial investment (Organization’s/beneficiaries’ contribution) Projected cash flow and sustainability Liquidity plan Sensitivity analysis to test the effect of changes in major variables(cost, price etc.) ©NASC, 2018 7 December 2018

Economic Aspects Only financial analysis does not provide adequate basis for judging the value of project to the economy. Examination is done from the view point of project’s contribution to the economy Justification of investment is examined. Major concern areas are: Increased output and services, increase in employment, improve in living standard of society, income distribution etc.) ©NASC, 2018 7 December 2018

Environmental Aspects Environmental appraisal mainly focuses on: Compliance of legal provisions(environmental acts and regulations) Possible environmental impact of project(positive and negative impacts) Provisions of mitigation measures and environmental management plan ©NASC, 2018 7 December 2018

Social Aspects Targeted beneficiaries Process adoption for Identification of direct and indirect beneficiaries Ways of securing cooperation from beneficiaries. Inclusiveness from gender, caste, ethnicity and other perspectives. Ways of bring positive impact in the society Provisions for minimizing negative impact to the society. Degree of social acceptance Ways for increasing social acceptance. ©NASC, 2018 7 December 2018

Risk Aspects Appraisal should focus on: Identification and analysis of possible risk Alternative strategies for risk mitigation Monitoring and control plan. ©NASC, 2018 7 December 2018

Project Appraisal: Group Work Group work on project appraisal (3 sessions) Presentation in plenary (1 session) ©NASC, 2018 7 December 2018

Thank You ! ©NASC, 2018 7 December 2018