22 Project appraisal in terms of Social benefits, program evaluation and Monitoring

Dr. Rajesh

epgp books

Content Outline

 

 

1. Introduction

 

2. Objectives

 

3. Project Appraisal Evaluation

 

4. Monitoring

 

5. Monitoring & Evaluation (M&E) system is built on the key parameters of a project.

 

6. The Four Key Components of a Monitoring & Evaluation (M&E) System

 

7. Types of Appraisal

 

a. Technical appraisal

 

b. Economic appraisal

 

c. Market appraisal

 

d. Management appraisal

 

e. Environmental appraisal

 

f. Financial appraisal

 

8. Problems Underlying

 

9. Project Appraisal Helps to Deliver

 

a. Appraisal justifies spending money on a project.

 

b. Appraisal is an important decision making tool

 

c. Appraisal lays the foundations for delivery.

 

d. Getting the system right.

 

10. Appraising a project.

 

11.Distinguishing between monitoring and evaluation.

 

12. Conclusion

 

When an organization wants to find a solution to a particular business problem and identify the best way for implementing that solution, it needs to plan and develop a project that might provide an effective action plan for addressing the problem through implementing the solution. In this context, project appraisal management serves as the major process of analysing and approving the project. Appraisal is the evaluation of the overall ability of the feasible project to succeed. It is done after the feasibility study of the project has been completed. In other words, project appraisal is an overall assessment of the relevancy, feasibility, and sustainability of a project prior to making the decision whether to undertake it or not. Also, it is a technique of evaluating, analysing the investments and effort of calculating the project’s viability. The aim is to consider and compare the possible feasible project and select the best that meets the objectives. The feasibility study serves as the groundwork for appraisal. The aspects covered in feasibility study are re-examined during project appraisal. Project appraisal is a process of detailed examination of several aspects of a given project before resources are committed.

 

Objectives

 

After going through this unit the learners will be able to:

  1. What is project appraisal and it’s evalution in terms of social benefit?
  2. Monitoring of project appraisal
  3. Types of project appraisal.
  4. Problems underlying appraisal audit.
  5. Delivery of project appraisal and similarity and differences from Evaluation and monitering .

Project Appraisal Evaluation

 

 

Project Appraisal evaluation is a systematic method for collecting, analysing, and using information to answer questions about projects, policies and programs, particularly about their effectiveness and efficiency. In both the public and private sectors, stakeholders often want to know whether the programs they are funding, implementing, voting for, receiving or objecting to are producing the intended effect. While program evaluation first focuses around this definition, important considerations often include how much the program costs per participant, how the program could be improved, whether the program is worthwhile, whether there are better alternatives, if there are unintended outcomes, and whether the program goals are appropriate and useful?

 

Project appraisal document generally consists project introduction, objectives, and scope, techniques of implementation, organization description, output, and benefits of project, project monitoring and evaluation etc.

 

Evaluation of Project appraisal is done two answers following two basic questions:

  • Will the project as designed meet the objectives and needs of country and society?
  • How does the project compete and compares with other feasible projects in terms of funds and other resources?

Thus the primary function of project appraisal is to determine a feasible projects’ ability to achieve its objectives. The objective of the different project differs, for a private project, the objective is profitability but for a public project objectives are socio-economic growth, employment, poverty reduction etc.

 

Monitoring

 

Monitoring is a continuing function that uses systematic collection of data on specific indicators to provide the management and the main stakeholders of an ongoing project or programme to measure the extent of achievement of objectives and progress in the programmes.

 

Indicators

 

An indicator is a quantitative or qualitative variable that allows changes produced by an intervention relative to what was planned to be measured. It provides a reasonably simple and reliable basis for assessing achievement, change or performance. An indicator is preferably numerical and can be measured over time to show changes.

Indicators, which are determined during the planning phase of a project, usually have the following components:

  •  What is to be measured? (What is going to change? E.g., participants reporting higher school attendance of girls in a village)
  •  Unit of measurement to be used (to describe the change, e.g., percentage)
  •  Pre-programme status (sometimes called the “baseline”, e.g., 40 per cent in 2007)
  •  Size, magnitude or dimension of intended change (e.g., 75 per cent in 2008)
  •  Quality or standard of the change to be achieved (e.g., improvement such that girls obtain higher grades)
  •  Target populations(s) (e.g., girls vulnerable to trafficking from villages in southern district)
  •  Time frame (e.g., January 2016 to January 2017).

A Monitoring&Evaluation (M&E) system is built on the key parameters of a project:

  • The overall goal or desired change or effect.
  • The main beneficiaries or audience that the project seeks to benefit.
  • The hypotheses or assumptions that link the project objectives to specific interventions or activities.
  • The project scope and size.
  • The extent of participation and capacity for M&E.
  • The project duration.
  • The overall project budget.

There is not a single, recognized industry standard for assessing the quality of an M&E system. However, some key criteria are summarized below

  • Utility: The proposed M&E system will serve the practical information needs of intended users.
  • Feasibility: The methods, sequences, timing and processing procedures proposed are realistic, prudent and cost-effective.
  • Propriety: The M&E activities will be conducted legally, ethically and with due regard for the welfare of those affected by its results.
  • Accuracy: The M&E outputs will reveal and convey technically adequate information.

The Four Key Components of aMonitoring&Evaluation (M&E) System

 

The four key components discussed below form the foundation upon which the M&E system is built. They play a critical role in M&E planning, answering these four corresponding questions:

  • What does the project want to change and how?
  • What are the specific objectives to achieve this change?
  • What are the indicators and how will they measure this?
  • How will the data be collected and analysed?

Types of Appraisal:

 

In project appraisal different factors examined during feasibility study are re-examined. These aspects are technical, economic, marketing, financial, managerial and environmental. These different sectors are explained below:

 

Technical appraisal

 

It ascertains whether the prerequisites for the successful commissioning of the project with respect to technical solutions, technical specifications, technical risks and uncertainties, local resources availability, size, location, geology etc. So different technical aspect of a project is assessed and summarized in this.

 

Economic appraisal

 

It is in terms of the worth of the project to the society so it also is known as social cost-benefit analysis. It judges the project form larger social point of view. In this project’s contribution to self-sufficiency, employments generation and social order are assessed and summarized. The criteria for assessment are:

  1. Benefit cost ratio (BCR).
  2. Internal rate of return (IRR).
  3. Net present value (NPV).
  4. Payback period (PB).

Market appraisal

 

Marketing analysis is primarily concerned with marketing related issues. Factor such as project capacity, market demand, demand forecasts, estimated revenue, marketing programme, market share, competition and ability to satisfy customers need are summarized and assessed.

 

Management appraisal

 

It focuses on the different managerial aspect of the project like project organization and management, institutional relationships and management capabilities in planning, organizing, staffing, leading, implementing and controlling. And also the impact of stake holders on the project and institutional viability of the project is examined.

 

Environmental appraisal

 

Environmental assessment is concerned with positive and adverse environmental impacts of the project. Initial environmental examination (IEE) and Environment Impact Assessment (EIA) is carried out and re-examined. Environmental restoration measures are also suggested.

 

Financial appraisal

 

It focuses on the financial feasibility of the project. In simple words, whether the project will be able to satisfy the return expectation to capital. Factors such as investment outlay, the cost of capital, means of financing, projected profitability, break-even points, cash flows, investment worth judged in terms of various criteria of merit and risk. Sensitivity analysis and ratio analysis is also done.

 

Problems Underlying

 

Project appraisal is the process of assessing and questioning proposals before resources are committed. It is an essential tool for effective action in community renewal. It’s a means by which partnerships can choose the best projects to help them achieve what they want for their community.

 

But appraisal has been a source of confusion and difficulty for projects in the past. Audits of the operation of Single Project Budget schemes have highlighted concerns about the design and operation of project appraisal systems, including:

  • Mechanistic, inflexible systems
  • A lack of independence and objectivity
  • A lack of clear definition of the stages of appraisal and of responsibility for these stages
  • A lack of documentary evidence after carrying out the appraisal

It’s no surprise that audits or inspections aren’t impressed with the quality of appraisals, and are specifically found with problems like;

  • Individual appraisals which do not cover the necessary information or provide only a superficial analysis of the project
  • Particular problems in dealing with risks, options and value for money
  • Appraisals which are considered too onerous/burdensome for smaller projects
  • Rushed appraisals

Project appraisal is a requirement before funding of programs is done. But tackling problems like those outlined above is about more than getting the systems right on paper. Experience in projects emphasizes the importance of developing an ‘appraisal culture’ which involves developing the right system for local circumstances and ensuring that everyone involved recognizes the value of project appraisal and has the knowledge and skills necessary to play their part in it.

 

Project Appraisal Helps to Deliver

 

Project appraisal helps project initiators and designers to;

  • Be consistent and objective in choosing projects
  • Make sure their program benefits all sections of the community, including those from ethnic groups who have been left out in the past
  • Provide documentation to meet financial and audit requirements and to explain decisions to local people.

Appraisal justifies spending money on a project.

 

Appraisal asks fundamental questions about whether funding is required and whether a project offers good value for money. It can give confidence that public money is being put to good use, and help identify other funding to support a project. Getting it right may help a community make its resources go further in meeting local need

 

Appraisal is an important decision making tool.

Appraisal involves the comprehensive analysis of a wide range of data, judgments and assumptions, all of which need adequate evidence. This helps ensure that projects selected for funding:

  • Will help a partnership achieve its objectives for its area
  • Are deliverable
  • Involve local people and take proper account of the needs of people from ethnic minorities and other minority groups
  • Are sustainable
  • Have sensible ways of managing risk?

Appraisal lays the foundations for delivery.

 

Appraisal helps ensure that projects will be properly managed, by ensuring appropriate financial and monitoring systems are in place, that there are contingency plans to deal with risks and setting milestones against which progress can be judged.

 

Getting the system right

 

The process of project development, appraisal and delivery is complex and partnerships need systems, which suit local circumstances and organization. Good appraisal systems should ensure that:

  • Project application, appraisal and approval functions are separate.
  • All the necessary information is gathered for appraisal, often as part of project development in which projects will need support
  • Race/tribal equality and other equality issues are given proper consideration
  • Those involved in appraisal have appropriate information and training and make appropriate use of technical and other expertise
  • There are realistic allowances for time involved in project development and appraisal
  • Decisions are within a implementers’ powers
  • There are appropriate arrangements for very small projects
  • There are appropriate arrangements for dealing with novel, contentious or particularly risky projects.

Appraising a project

 

Key issues in appraising projects include the following–

 

Need, targeting and objectives

 

The starting point for appraisal: applicants should provide a detailed description of the project, identifying the local need it aims to meet. Appraisal helps show if the project is the right response, and highlight what the project is supposed to do and for whom.

 

Context and connections

 

Appraisal should help show that a project is consistent with the objectives of the relevant funding program and with the aims of the local partnership. Are there links between the project and other local programs and projects – does it add something, or compete?

 

Consultation

 

Local consultation may help determine priorities and secure community consent and ownership. More targeted consultation, with potential project users, may help ensure that project plans are viable. A key question in appraisal will be whether there has been appropriate consultation and how it has shaped the project

 

Options

 

Options analysis is concerned with establishing whether there are different ways of achieving objectives. This is a particularly complex part of project appraisal, and one where guidance varies. It is vital though to review different ways of meeting local need and key objectives.

 

Inputs

 

It’s important to ensure that all the necessary people and resources are in place to deliver the project. examination of appropriately detailed budgets.

 

Outputs and This may mean thinking about funding from various sources and other inputs, suchas volunteer help or premises. Appraisal should include the

 

outcomes

 

Detailed consideration must be given in appraisal to what a project does and achieves: its outputs and more importantly its longer-term outcomes. Benefits to neighbourhoods and their residents are reflected in the improved quality of life outcomes (jobs, better housing, safety, health and so on), and appraisals consider if these are realistic. But projects also produce outputs, and we need a more realistic view of output forecasts than in the past.

 

Value for money

 

This is one of the key criteria against which projects are appraised. A major concern for government, it is also important for local partnerships and it may be necessary to take local factors, which may affect costs, into account.

 

Implementation

 

Appraisal will need to scrutinize the practical plans for delivering the project, asking whether staffing will be adequate, the timetable for the work is a realistic one and if the organization delivering the project seems capable of doing so.

 

Risk and uncertainty

 

You can’t avoid risk – but you need to make sure you identify risk (is there a risk and if so what is it?), estimate the scale of risk (if there is a risk, is it a big one?) and evaluate the risk (how much does the risk matter to the project.) There should also be contingency plans in place to minimize the risk of project failure or of a major gap between what’s promised and what’s delivered.

 

Forward strategies

 

The appraisal of forward strategies can be particularly difficult, given inevitable uncertainties about how projects will develop. But is never too soon to start thinking about whether a project should have a fixed life span or, if it is to continue beyond a period of regeneration funding, what support it will need to do so. This is often thought about in terms of other funding but, with an increasing emphasis on mainstream services in neighbourhood renewal, appraisal should also consider mainstream links and implications from the first.

 

Sustainability

 

In regeneration, sustainability has often been talked about simply in terms of whether a project can be sustained once regeneration funding stops but sustainability has a wider meaning and, under this heading, appraisal should include an assessment of a project’s environmental, social and economic impact, its positive and negative effects.

 

While appraisal will focus detailed attention on each of these areas, none of them can be considered in isolation. Some of them must be clearly linked – for example, a realistic assessment of outputs may be essential to a calculation of value for money. No project will score highly against all these tests and considerations. The final judgment must depend on a balanced consideration of all these important factors.

 

Checklist for project appraisal

Whether one is involved in a partnership with an appraisal system in place, or starting to design one from scratch, these questions are worth asking-

  • Are appraisals systematic and disciplined with a clear sequence of activities and operating rules?
  • Is there an independent assessment of the project by someone who has not been involved with the development of the project?
  • Does the appraisal process culminate in clear recommendations that inform approval (or rejection) of the project?
  • 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 a basis for future management, monitoring and evaluation?
  • Does the appraisal system comply with any relevant government guidance
  • Are the right people involved at various stages of the process and, if necessary, how can you widen involvement?

Conclusion

 

The notion of social appraisal emphasizes the importance of a social dimension in appraisal theories of emotion by proposing that the way an individual appraises an event is influenced by the way other individuals appraise and feel about the same event. It p provide an effective action plan for addressing the problem through implementing the solution of the social program In this context, project appraisal helps in the management of social program to serves as the major process of analysing and approving the project. Appraisal is the evaluation of the overall ability of the feasible project to succeed. Which is known as the vital for the success of any social program and keep chake the intervention by various communities?

 

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