Sustainable Economic Development of the Sudurnes region, Iceland

Preparation of Project Proposals‘The project fiche’

JOSE MATEOS MORENO

Ásbrú, 25 November 2011

2

1. Preparation of the project application form

2. Activity and resource planning

Contents

Sustainable Economic Development of the Sudurnes region, Iceland

3

1. Project Design

4

Project Design: definition of a Project

• Economically indivisible series of activities for a precise technical function

• Identified outputs and objectives• Clearly defined beginning and end• A programme is a heterogeneous group of

measures and projects

Sustainable Economic Development of the Sudurnes region, Iceland

5

Elements of project design

• Why: the problem or need and wider objectives• What: activities, results and project purpose• How: internal and diagonal logic:

- Indicators for monitoring and evaluation- Risk analysis and assumptions- Preconditions- Finance: costs and co-financing- Implementation schedule

6

Project Design: TasksResponsibilities of Final Beneficiary:• Designing of project proposals and submitting them

to IBs

Responsibilities of Lead Ministry (Sectoral Offices):

• Compliance with the sectoral strategic documents • Verifies technical quality of the project proposal • Verifies if the project proposal meets the eligibility

criteria for IPA measures • Ensures the national financial contribution for the

project

7

The project application procedure should:

• Promote high quality project preparation• Asess if EU principles are met (horizontal

issues)• Check for availibility of all necessary

documents (feasibility studies, EIA, permits etc)

• Show main results of EIA and feasibility/CBA studies

• The format (project fiche or application form) is a tool for uniform communication of relevant key project information

8

Elements of a project proposal ‘Project fiche’

1) Basic information 2) Objectives 3) Description4) Institutional Framework5) Detailed Budget6) Implementation Arrangements7) Implementation Schedule8) Cross cutting issues

1) Equal Opportunity 2) Environment

9) Rates of Return10) Investment Criteria11) Conditionality and Sequencing

Annexes: Logframe, implementation chart, contracting and disbursement schedule, list of preparation studies, laws, plans.

9

Activities in Project Design

A. Information gathering for the problem analysis and the elements of project design

B. Deciding the scale and scope of the project

C. Assembling the project design elements

D. Filling in the project proposal (fiche)

10

A) Information gathering

– Outcome of previous projects / gaps– Linked or other relevant activities– Views of potential beneficiaries / recipients– Monitoring/evaluation recommendations– OPs and any other government strategies or plans– Financial information – national funds available– Statistics available for Indicators of Achievement– Gender information– Institutional ‘audit’ of staffing / capacity / resources– Environmental Impact Assessment (EIA) / feasibility

studies (CBA) – Material for Fiche annexes

11

B) Deciding the scope and scale

Scope: type of activities to include should depend on:

- type of needs/problems- cost/feasibility issues- dependency of success on specific activities

Size (capacity) of the project should depend on:

- market demand/need for the services of the project (feasibility study)

12

C) The project design elements and logframe

D) Filling in the project fiche

13

The logic of project design

Needs/Problems (t)

Overall objective

Project purpose Expected results

Input

Activity

14

15

• Briefly explain the origins of the project and outline why it is being undertaken

• Problem or need analysis: causes of the problems and size of the problem

Example: High level of unemployment because of low economic activity

1. Why: Start with problem or need identification

16

2. Objectives: Overall objective

• The Overall Objective should explain why the project is important to society, in terms of the longer-term benefits to beneficiaries and the wider benefits to other groups.

• The Overall Objective will not be achieved by the project alone, but will require the impacts of other programmes and projects (and probably other actions) as well.

• Example: to improve business environment in a region

17

2. Objectives: Project Purpose

The single central objective of the project in terms of sustainable benefits to be delivered to the project beneficiaries.

• Example: to improve business infrastructure for new start-ups.

• To improve tourist infrastructure in a region.

18

3a. Results

Results impact and sustainability

What is achieved what changes

what lasts

The results are what the project management is responsible for achieving by its completion date.

19

3b. Activities

• The specific tasks to be undertaken during a project’s life to obtain results.

Activities should indicate:• what the person or organisation

responsible for the project should do.• how the project’s goods and services will

be delivered

20

3c. Indicators

Measurable indicators that will show whether or not objectives have been achieved at each level of the logframe hierarchy and at defined times

Indicators provide the basis for designing an appropriate monitoring (and evaluation) system

Sources of Verification: the means by which the indicators or milestones will be recorded and made available to project management or those evaluating project performance.

21

Risks & assumptions and Pre-conditionsRisks: factors which could affect the progress or

success of the project

In LFA: risks should always be expressed as assumptions

Risk analysis and risk management strategy for larger projects

Pre-conditions: constraints that have to be met before the project starts

22

4. Institutional Arrangements

• Institutional framework within which the project will operate.

• Identify any constraints or changes that can have impact on results

• Chain of command• (a) who will be appointed as the "Engineer“• (b) who will be the "Employer" — the institution

responsible for providing the site and for paying the contractor

• (c) who will be or become "Owner" of the asset after project completion

23

5. Detailed Budget

• Budget: estimation of investment costs• Clarify the cost estimation• Maintenance costs are not covered by EU

funds: make reservation in national budget• Specify co-financing of national budget,

municipalities, loans etc. (column funding source in resource schedule)

24

6. Implementation arrangements

• Implementing agency of the project (details)

• Contracting parties

25

7. Implementation schedule

A) Start of tendering/call for proposalsGive date, including when TORs and/or project specifications will be ready

B) Start of project activity

Expected date of commencement of first contract/grant scheme

C) Project completion

Expected date of last payment under last contract/grant

26

Annexes to Project Fiche• Logframe• Detailed implementation chart (year one at least)• Contracting and disbursement schedule, by quarter,

for project duration • Studies– All Projects: list of (pre-) feasibility studies, ex-ante

evaluations, other preparatory work– Investment Projects: exec. summaries of economic &

financial studies, EIAs etc.• Reference list of relevant laws and regulations• Reference list of relevant strategic plans and studies

27

2. Activity and resource schedules

28

Activity and resource schedules(see examples)

• Logframe: broad description of activities• Operational detail necessary

29

Contracting and disbursement schedule

• Show for project period contracting points

• Show for project period expected payments in time

30

Conclusions

• Good project design starts with a sound problem analysis (problem tree) and make use of logframe

• Project design should be logical and have measurable objectives (logframe)

• The project fiche and logframe can help you to draft a good proposal