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Mid Term Assignment – Ginish Jung Dahal (17307)

KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Mid Term Assignment

Development Project Management

Submitted by:

Ginish Jung Dahal

MBA 4th Term

Roll No: 17307

Submitted to:

Mr. Nara Hari Dhakal, Ph. D

Course Facilitator

Development Project Management

9th April, 2018

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1. Suppose that you are asked to design economic empowerment project for the poor and

disadvantaged groups for the provincial government in state 6 of Nepal. What will be your

advice on following aspects of organization and management of this project?

(35 marks)

a. Identify the target group of the project.

b. Identify the appropriate executing agency and implementing agency.

c. Engage the key stakeholders in project activities effectively.

d. Prepare the procurement plan and strategy for procurement.

e. Ensure effective local participation on different stages of project management.

Answer:

State 6 commonly known as Karnali Pradesh has its proposed capital at Birendranagar. It

includes 10 districts and has a tentative population of 11, 68,515 and an area of 27,984 sq. km.

Being more specific, I decided to choose Jajarkot district as it is the poorest and most

disadvantaged district in state 6. Within Jajarkot district, I choose Jagatipur, Punama and

Khalanga V.D.C/Municipality for designing the economic empowerment project for the poor and

disadvantaged groups. The following information is obtained:

Particulars Jagatipur Punama KhalangaPopulation(In number)

7279 (Total)3457 (Male)

3822 (Female)

7917 (Total)3948 (Male)

3969 (Female)

12186 (Total)6069 (Male)

6117 (Female)Household(In number)

1441 1495 2523

Household by main source of drinking water (In number)

482 (tap water)393 (uncovered water)

325 (spout water)

968 (Tap water)51 (uncovered water)

400 (spout water)

1916 (tap water)208 (uncovered water)

352 (spout water)Household by type

of Toilet (In %)78 % (without toilet) 70 % (without

toilet)42% (without Toilet)

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a. Identify the target group of the project

The main objective of this project is to upgrade the health and sanitation of the people through

proper construction of water supply, drainage and sanitation facilities with awareness of various

health problems and their treatments.

The project is implemented in Jagatipur, Punama and Khalanga VDC/Municipality of Jajarkot

district of provincial government of state 6 in Nepal. These places are economically backward

and varied by topography, poor infrastructures and poor health and sanitation facilities. The

project aims to improve the health and sanitation aspect of these areas. As stated above, 78%,

70% and 42% household of Jagatipur, Punama and Khalanga are without any toilet facility. The

target population is 27,382 with 52% being female and 70-80% being under poverty line.

b. Identify the appropriate executing agency and implementing agency

As the project is associated with improving water supply and sanitation of these targeted areas,

Ministry of water supply and sanitation (MWSS) will be the executing agency and

Department of water supply and Sewerage (DWSS) will be the leading implementation

agency. They would be involved in planning, operating, and maintenance of water supply and

sanitation throughout this project.

Other implementation agency could be The Nepal Trust. It is a national level Non-

governmental organization (NGO) that promotes water in a sustainable way. It promotes WASH

(Water/Sanitation/Hygiene) activities under it and its job would be to create awareness among

about cleanliness in water resources and providing health campaigns to the target group.

c. Engage the key stakeholders in project activities effectively

Here, in this project, the key stakeholders would be Local people, Executing agency,

Implementing agency and staffs of the project. Some of the ways of engaging the stakeholders in

three phases could be outlined below:

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1. Raising awareness generation campaigns regarding health and sanitation programs

which include community members as well as members from implementing agency

in these areas.

2. Local labor force could be utilized for basic level construction works of water supply

and sanitation measures. Additionally, Technical experts from Department of water

supply and sewerage (DWSS) monitors the overall construction of works. Training

will be given to local labor force with the help of implementing agency.

3. Regular monitoring of the project work will be reported to the Ministry of water

supply and sanitation (MWSS) to check whether the project is being run towards

objective or not.

d. Prepare the procurement plan and strategy for procurement

Procurement plan

Project Name: Jagatipur, Punama and Khalanga Water supply and sanitation project

Executing agency: Ministry of water supply and sanitation

Loan Amount: 80 Crore

Date of procurement: 9th April, 2018

Procurement of Works and Goods methods

Method Threshold

National Competitive Bidding (NCB) for works Less than Rs. 5 crore

International Competitive Bidding (ICB) for

works

Greater than Rs. 5 crore

ICB for goods Greater than or equal to Rs. 50

lakhs

Shopping for work and goods Below Rs. 50 lakhs

The recruitment method used is QCBS from the National as well as International level.

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The consultation fee of NRs. 10 crore is estimated.

Prior and post review of the goods and works for Quality and Cost Based selection

(QCBS).

Labor would be utilized from within the community and the fee allocated will be Rs. 12

crore.

Goods and Works to be procured

Particulars Contract Value Procurement Method

Drinking Water system Rs. 40 crore International competitive

bidding (ICB)

Toilet Construction and

Sewer system

Rs. 20 crore National competitive bidding

(NCB)

e. Ensure effective local participation on different stages of project management

In this project, the community participation in the planning stage could be lower in comparison

to participation in the implementation stage as peoples would be engaged into the use of the

things that are built after the project. The elaboration of the stages of project management with

effective local participation is as follows:

1. Initiation: Before the project starts, the community raising program would be

conducted where the participatory approach of peoples of community and staffs from

other agencies are involved.

2. Planning: In this phase, the planning of the requirements of technical tools with its

working area and the formation of water management and sanitation committee will

be done. This is done only through proper discussion among the community

members.

3. Execution: This phase would more involve the construction works of the project. The

execution or working phase of the project would require the local labor working in

the field with supervision of technical teams of implementing agencies. To ensure

proper work, training will be given.

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4. Closure: This phase includes the regular operation of the project after being

completed and local peoples will be given information regarding the operations of

this project. To inform about these process, community members will be notified

through information session after the project concludes.

2. Suppose that you are designing a community based livestock development project to uplift

the livelihood of the 25,000 smallholder farmers for provincial government in state 1 of

Nepal. The project design team approached you to assist them to conduct economic analysis

of this project. Please answer the following question (40 Marks)

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a. What steps you follow to carry-out the economic analysis of this project?

The following steps would be followed to carry out the economic analysis of the above

mentioned project:

1. Preparation of the financial analysis of the project with estimation of the financial cost

which includes cost of the livestock farming, including the investment amount and cost

for operation and maintenance of the farm.

2. Removing all subsidies and taxes from the adjusted financial flows and consideration of

the following externalities and effects should be done.

Impact on Human settlements.

Increased income from by products such as dung, used straw, etc which can be

used for fertilizers.

Leakage of waste products may carry bacteria harming the surroundings.

3. List down the beneficiaries and investor for benefits and costs respectively of the

environmental externalities.

4. Adjustment of the cash flows with consideration of the externalities and calculating the

net benefit of the project to the community.

5. Calculating the present value of the project with correction of shadow prices at

appropriate discount rate and after this, calculate the economic pricing of the project.

b. How do you identify the cost and benefit of this project?

The benefits of the project could be outlined as below:

a. Increase in crop production

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The use of livestock and its sub product i.e. manure are important in crop production.

Livestock is a source of energy providing draught animal power while manure improves

soil structure and fertility as well as water retention.

b. Family and community employment

As the livestock project is completed, it generates revenue from its products. The family

members will be employed and further it results to the whole community development

through employment.

c. Supply of food for rural areas

These livestock is able to produce food which is essential for human beings to survive. It

could be Milk, cheese, curd, etc. Beside these benefits, other livestock products can be

used for domestic consumption and local sales such as skins, hides and horns.

d. Easily converted to cash (liquid asset for farmers)

Livestock feature as living savings can be converted into cash whenever the family needs

it, it is a security asset influencing access to informal credits and loans being also a

source of collateral for loans. In this rural region, where financial markets are absent,

livestock stocks are a source of asset accumulation and a measure of prosperity.

e. Improves living standard and leads to economic development

When the revenues are generated from the livestock, it indirectly affects the economic

development of the country as a whole. When the livestock farming is done, it raises

income of family members leading to improved living standard as well. Further, it

develops the community leading to economic development of the country as a whole.

The cost of the livestock project could be outlined as below:

1. Fixed investment

The project includes the fixed investment such as machinery and equipment needed for

farms, land, shed/building, water reservoir, etc.

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2. Variable cost

It includes the costs for repair and maintenance of farms, straw for livestock, Medical

cost, interest on fixed investment (If applicable), labor charge, fuel (for generator),

general charges such as electricity, water ,etc.

3. Other cost

These cost may be additional i.e. it may or may not occur. These costs include the

compensation made to the affected community members if through bacteria and other

hazards, etc.

c. What process you follow to evaluate the cost and benefit of this project?

There are certain process to follow while evaluating the cost and benefit of this project. These

processes are outlined as below:

1. Identifying the technical and socio-economical context of the project through various

measures.

2. Assessment of environmental impact and damages to the ecosystem and human health

associated with the different scenarios are done.

3. External effects are identified. This is done to describe the relationship between provision

of environmental services by ecosystem and social benefits derived from their

consumption.

4. The evaluation method and validation of monetary value is calculated. The most

satisfactory method of evaluation will be chosen depending on the project or general

socio-economic context.

5. Discount rate is determined and estimation of the environmental net benefit of the project

is done. In case, where strong environmental impacts occur, a low discount rate (approx.

3 or 5%) is selected in order to include the ethical principles such as precaution measure.

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d. How do you access economic viability and local affordability of proposed interventions?

In order to access economic viability of the project, the following considerations could be

considered:

1. Financial feasibility:

If the project’s discounted payback period is less than the maximum acceptable payback

period, the project is acceptable.

If the NPV > 0, the project is acceptable

If the IRR > required rate of return, the project is acceptable.

2. Socially acceptable

The project will be socially acceptable as the local communities will participate here.

This project influences the economic and social development of the project area i.e. state

1 of Nepal.

3. Economically viable

The project generates the revenue from the use of the livestock which increase the family

income leading to improved living standard of people of that project area. As mentioned

earlier, it has indirect benefits of increased crop yield as well which further state that the

project is economically sound.

4. Environmentally sound

The community environment would be green after the use of manure which is contributed

indirectly by livestock. Further, it makes the environment sound as it helps in managing

the eco-system of environment.

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5. Institutionally affordable

This project is based on community development and it increases the employment

opportunity as well. So, it is institutionally feasible.

6. Technically feasible

The implementing agency i.e. the government bodies have some of the expensive

equipments used for this project and further, the donation from international agencies

makes this project technically feasible as well.

Regarding local affordability, if all the materials used in the project are natural and

locally sourced, then it helps in the reduction of the costs associated with transportation

and storage of goods. To assess the affordability of the project, the procurement plan

should be properly analyzed and the procurement can be done in two ways namely

international competitive bidding for goods/works and National competitive bidding for

works/goods. In general, National procurement is more affordable than the

international procurement. The use of local resources for construction works and the use

of local labor as the labor force further clarify the affordability of the project.

3. Ministry of federal affairs and local development recruited you as a consultant as a

management expert to review the logical framework approach of local governance and

community development project implemented under sector-wide approach by the federal

government of Nepal. Answer the following questions (25 Marks)

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Answer:

a) How do you plan this consultancy assignment?

There are certain key performance indicators which are used to evaluate the implementation of

any project. Firstly, we should start with these indicators. Our role may be to identify gap

between the planned and actual result. We should review the goal, purpose, activities involved,

output of project, and resources used in project against the performance criteria. The following

process could be used:

1. Reviewing the assumed vs. actual goal of the project.

2. The immediate or intermediate outcome of the project resulting from the project assumed

goal.

3. Actual output and assumed output required the project to succeed.

4. Checking whether the discrepancy between activities needed to achieve these output.

5. Whether the planned use of resources matches with the actual resources spent or not.

b) What steps you follow in reviewing this log-frame?

The steps followed in reviewing the log-frame could be more or less same as formulation of log-

frame of the project. The steps in reviewing this log-frame could be outlined as below:

1. Analyzing the context and the basis which was used in formulation

2. Stakeholder analysis and identifying the impact upon them

3. Root problem analysis whether is is successful in analyzing the root problem or not

4. The objective analysis and its ability to convert vision into reality

5. Plan of activities and actions taken

6. Resources planned vs. used

7. Key performance indicators specified and achieved

8. The risk undertaken and return on the basis of it

9. Key assumption undertaken.

Reviewing log-frame requires verification of the sources of information as well as method used

to collect and report them. Some of the terms to review are as follows:

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Purpose: Outcome expected at end of the project.

Goal: The broad impact on development to which project contribute at a sectoral or national

level.

Component objective: the expected outcome of producing each component’s output

Output: measurable result of goods and services of the project under management control.

Activities: things or process carried to implement the project.

c) How do you ensure ownership of key stakeholders on revised log-frame?

To ensure the ownership of key stakeholders on revised log-frame, there are basically two

methods which are stated below:

a. Stakeholder mapping

Stakeholder mapping is a four-step process of:

1) Identifying groups, organizations, and people who are stakeholders2) Analyzing stakeholders' perspectives and interest3) Mapping the relationship between stakeholders and company objectives4) Prioritizing and ranking stakeholders

b. One to one interview

This process uses personal interview of the beneficiaries on 1-1 basis where it involves the

issues of the stakeholders, and knowledge sharing session, workshop and meeting of the

stakeholders are also further discussed.

d) How do you ensure that this logical framework is logical?

There are certain indicators of log-frame which helps to give a basic overview of objectives,

activities and resources required for the project. The assumptions are checked whether the

project leads to what direction. The indicators of the project giving an overview of the

monitoring of project help to determine logical framework as well.

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The logical framework of the project can be considered logical on these basics:

The vertical logic

The first column indicates the project logic. In the bottom row, there are project activities.

Outputs are generated after the activities are completed. All the different results together will

help to achieve the projects purpose. In a broader context, the project’s purpose will help to

achieve one or more goals. So, in conclusion, the activities leads to tangible outputs, outputs

leading to project’s purpose and purpose leading to one or more goals.

The horizontal logic (If-then situation)

This first column containing the project logic is about things that are under our control. Jumping

directly to the last column, there are things that are not directly under the project’s control, but

that may influence its realization in a positive or a negative way. These are called assumptions,

and is found in the fourth column.

In this way there is interrelation among the each and every component so it is called logical

framework.

e) How do you identify and analyze the likely risk of this project?

The process of identifying and analyzing the risk of the project could be outlined below:

1) Identifying, analyzing and assessing different factors, which, affect the possibilities

available to the project to achieve its objectives

2) An analysis of possible critical external and internal factors gives us an opportunity to

assess the conditions that the project is working in.

3) In the risk analysis, it can be the case that so-called “killing factors” arise, i.e. factors that

make goal fulfillment in a project impossible.

4) Risk analysis must be backed by a risk management plan that is proactive plan in our case

of local community development and local governance major riskiest event could be un

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https://www.logframer.eu/content/identify-risks-and-assumptions


acceptance and failure to deliver the activities as promised. Risk may occur from internal

as well as external source.

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