etcf is funded by the european union 1 project implemented by eurochambres & tobb introduction...

1Project implemented by Eurochambres & TOBB

ETCF is funded by the European Union

INTRODUCTIONTO

PROJECT CYCLE MANAGEMENTPROJECT CYCLE MANAGEMENT(PCM)

ETCF – Info DaysAnkara, March 3rd 2008



OUTLINE

Introduction to the idea of PCM

Understand why PCM provides a context for project preparation and implementation

Presentation on logical framework



WWhathat isis PCM PCM??

Programming

Financing

Identification

Formulation

Evaluation

Implementation

Programming

Financing

Identification

Formulation

Evaluation

Implementation



The The pphases of the hases of the PProject roject CCycle!ycle!

Programming – Multi-Annual Indicative Programme

Identification – pre-feasibility study (including problem

analysis), EC decision

Formulation (Appraisal) – feas. study, EC decision

Financing – final EC Financing Agreement

Implementation – project launch and monitoring

Evaluation – project assessment



WWhathat isis PCM PCM??

A logical and systematic approach to undertaking activities

An approach which minimises risk (without avoiding it) and relates activities to objectives

Identifies the undertaking of specific tasks in a holistic and cyclical manner

Can be applied to a wide range of different activities



Why PCM?Why PCM?

PCM will help us access EU and other external funding

PCM can provide a valuable framework for successful project implementation

PCM helps us to prepare better projects which will address problems more effectively



Why Learn about Project Cycle Why Learn about Project Cycle ManagementManagement??

Central to EU approach to development MEDA/PHARE IPA Structural Funds Used by OECD and other donor enterprises Accepted by European Commission since

1992 for project development and management



But But mmore ore tthan han jjust an EU requirement!ust an EU requirement!

Increasing need for external funding for public services

Understand the framework within which EC staff and experts operate

Public –private partnerships .. And generally good practise!



ETCFETCF Project Application Project Application

Current stage of ETCF Grant Scheme



WWhathat isis aa PROJECTPROJECT ??

A project should always …• Be consistent with, and supportive of, broader policy and

programme objectives, but• Create/develop something ‘new’, rather than simply support

ongoing activitiesAnd have …• Clearly defined objectives which address identified needs• A clearly identified target group(s) • Clearly defined management responsibilities• A start and finish date• A specified set of resources and budget



Examples of projects: “Hard” infrastructure such as construction of a highway or a

water treatment plant “Soft” projects such as provision of technical assistance or

training Grant scheme projects, regional scheme for SME assistance Internal activities such as putting in place a new IT system Some projects may include hard and soft elements

WWhathat isis aa PROJECTPROJECT ??



EU Project PreparationEU Project Preparation

Project preparation is key to success in applications for EU funding

Key documentation (eg project fiche and log frame) and approach must be followed

Project proposal is also the framework for implementation Poor preparation can result in:

- Project being rejected- Problems during implementation (if approved)- Failure to absorb funds



Key Issues in Project PreparationKey Issues in Project Preparation

Importance of analysing problems and defining clear objectives

Importance of scheduling activities over time and identifying key relationships and dependencies

Need to understand and schedule procedures and processes (eg tenders that will be needed)

Importance of monitoring and evaluation Need to identify and manage risk (but not to

avoid it!)



Key elements of Key elements of PProject roject PPreparationreparation

Project cycle phases - structured & informed decision-making, and feedback from evaluation

Partner / stakeholder ownership - involvement of stakeholders in decision-making, including emphasis on teamwork and communication

Logframe planning - comprehensive & consistent analysis

Integrated documentation - standardised documentation and assessment criteria



Why Projects FailWhy Projects Fail

Lack of relationship between problems and objectives

Poor financial and budget planning Lack of inter relationship between tasks,

financing and time planning Lack of engagement of wider stakeholders Lack of project coherence and synergy



Why Projects Why Projects FFailail

Rigid targets and processes (inflexible) Not linked to programme or policy framework False expectations (too optimistic goals) End abruptly and usually too short term ‘driven’ by aid professionals, not locally ‘owned’ Force relationships to be contractual



Context for success of PCMContext for success of PCM

Preparation of projects for EU funding requires: Understanding and commitment at all levels of

responsibility Flexible and open style of management Interactive approach – working and learning from

other partners Ability to interact with European Institutions,

experts and partners.



Format and documentationFormat and documentation

A basic format is used for documents produced during the project cycle, following the core logic of the LFA approach.

1. Summary 2. Background3. Sectoral and problem analysis4. Project / programme description5. Assumptions, Risks 6. Implementation arrangements 7. Quality factors 8. Annex: Logframe (complete / outline – as suits phase)



PCM and team buildingPCM and team building

The success of project cycle management depends on effective team-work between stakeholders:

Understanding different perspectives and realities Review the appropriateness of management structures and

hierarchy Respecting different knowledge and skills Establishing responsibilities of different team members Giving adequate time to the process, while still focusing on

results Communicating clearly



Introduction to Logical Framework Introduction to Logical Framework ApproachApproach



PCMThe decision making and

implementation process defined by the

organisation

Merging PCM and LFAMerging PCM and LFA

Project Cycle Management

Defines different phases in the life of a project with well defined management activities and decision making procedures

Logframe Approach

A methodology for planning, managing and evaluating

programmes and projects, using tools which promote systematic

analysis, stakeholder participation and structured documentation

LFAProject management method

and tools



The Logical FrameworkThe Logical FrameworkOne tool - the Logical Framework (LF) is used throughout PCM cycle.It forms a common and consistent link between:

Objectives aimed at

Necessary means

Objectives aimed at

Means-related costs

Results obtainedActivities

implemented

Results obtained

Problems to be solved

Activities implemented

Necessary means



Application of LFAApplication of LFA

LFA is an aid to systematic and logical thinking The process (who is involved and how) is as important as

the product LFA tools should be applied as part of an iterative process –

not as a set formula The Logframe matrix (the product of the analysis) must be

open to review and revision The LFA tools presented in this training are not ‘exclusive’

– there are many other complementary tools (such as SWOT, Venn Diagrams and other participatory tools) that can be used to support effective PCM



LF Matrix - defining project structure, testing its internal logic & risks, formulating measurable indicators of success

Activity scheduling – when will the activities be carried out?

Resource scheduling – what resources will be needed?

LFA & Project DesignLFA & Project Design

Stakeholder analysis - identifying & characterising potential major stakeholders; assessing their capacity

Problem analysis - identifying key problems, constraints & opportunities; determining cause & effect relationships

Objective analysis - developing solutions from the identified problems; identifying means to end relationships

Strategy analysis - identifying different strategies to achieve solutions; selecting most appropriate strategy.

PLANNING STAGEANALYSIS STAGE



EVALUATION

LFA & Project ImplementationLFA & Project Implementation

IMPLEMENTATION

Indicators which provide management information (monitoring and regular review)

Assumptions which support risk management

Updated activity schedules linked to results

Updated resource schedules and budgets linked to results

A clear situation/problem analysis to help evaluate relevance

Objective structure and indicators against which to evaluate impact and effectiveness

Activity and resource schedules to assist in evaluating efficiency



LFA - Analysis StageLFA - Analysis Stage

Stakeholder analysis

Problem analysis

Objective analysis

Strategy analysis



Stakeholder Analysis Stakeholder Analysis

Stakeholders are any group of people who have an interest/role in addressing identified problems or achieving desired solutions relevant to the project, e.g.:

Government institutions and organisations Private sector groups, individual companies Civil society groups (NGOs, CBOs) Communities of interest / communities of place Community members (farmers/traders, women/men,

young/old, rich/poor)



Stakeholder AnalysisStakeholder Analysis

Why stakeholder analysis/participation in PCM? allows key interest groups to be identified & involved Will allow different expectations to be identified Will allow mobilisation of different resources essential for

the project: information, financial, human, legitimacy shows how different stakeholders perceive reality highlights different needs helps identify potential conflicts/risks supports appropriate objective setting, strategy selection

and targeting of benefits



Stakeholder AnalysisStakeholder Analysis

Tools include: Stakeholder matrix (interests, roles, capacities etc) Focus Groups and facilitated discussions SWOT analysis (strengths, weaknesses, opportunities,

threats) Venn Diagrams (relationships between stakeholders) Organisation charts (formal lines of authority &

responsibility) Gender analysis (tasks, responsibilities, time allocation)



Problem AnalysisProblem Analysis

The problem tree establishes cause and effect to ensure that root problems are identified and then addressed.

Main steps are:

1. Identify one or two (initial) major problem(s) affecting the target group(s) in terms of their livelihood and/or access to services

2. Identify related problems/constraints

3. Analyse and identify cause and effect relationships

4. Check the logic

5. Draft the problem tree diagram



Problem AnalysisProblem Analysis

EFFECTS

CAUSES

The problem tree helps to establish the cause/effect relation between problems

Reduction of the fish resources

Low selling prices for fishers in the

villages

Income of artisanal fishers in decline

Destruction of the natural habitat and

mangroves

Illegal fishing practices

Poor quality of the catch

Limited access to market



Analysis of ObjectivesAnalysis of Objectives

ENDS

MEANS

Convert the problems into positive achievements through means/ends relationships

Depletion of the natural fish stock reduced or

stopped

Selling price for fishers

increased

Income ofartisanal fishers

increased

Natural habitats of fish resources

protected

Illegal fishing practices significantly

reduced

Processing of the catch improved

Access tomarkets improved



Strategy AnalysisStrategy Analysis

It aims to:• Analyse the identified (potential)

objectives in relation to a set of ‘feasibility’ criteria;

• Select an appropriate strategy for project implementation



Strategy AnalysisStrategy Analysis

Urgency

Importance given by the target groupContribution to

the reduction of inequalities (e.g.

gender)

Social acceptability

Complementarities with projects

financed by other donors

Relevance for the EC/partner

country agreed strategy (CSP/NIP)

Existing potentials and capacities (of target group)

Availability of financial

resources, expertise, etc.

SOME POSSIBLE CRITERIASOME POSSIBLE CRITERIA



Depletion of the natural fish stock

reduced or stopped

Selling price for the fishers increased

Income of the artisan fishers

increased

Income of the artisanal fishers

increased

Natural habitats ofhalieuticresources

protected

Illegal fishing practices significantly

reduced



Access to the markets improved

Access to the markets improved

Decision based on policy priorities, budget, human resources, urgency, social acceptability, etc

Fish stock control strategy Market orientation strategy

PURPOSEPURPOSE

OVERALL OVERALL OBJECTIVEOBJECTIVE

RESULTSRESULTS

Out of the projectIn the project

These excluded statements should be considered in the analysis of

assumptions/risks



LFA - Planning StageLFA - Planning Stage

Logical Framework Matrix

Activity scheduling

Resource scheduling



The Logframe Matrix

Pre-Pre-conditionsconditions

Project Description

Verifiable Verifiable indicatorsindicators

Sources of Sources of verificationverification

Assumptions

Overall objective

Project purpose

Results

Activities meansmeans costscosts

Note: As each part of the matrix is formulated, the logic of other parts should be tested and refined/revised, as required. An ‘iterative’ process.



Logframe Matrix: sequence of completion

44

33

22

11

1212 1313

1010 1111

88 99

Pre-conditionsPre-conditions

55

66

77

Project Description

Verifiable Verifiable indicatorsindicators

Sources of Sources of verificationverification

Assumptions

Overall objective

Project purpose

Results

Activities meansmeans costscosts



Project Description Levels

Relate to the wider sectoral or national objective, to which the project will contribute;

The sustainable flow of benefits to the project’s target groups(s);

The goods and services delivered by the project;

What the project does to produce the results (work program/tasks).

Overall objective

Project purpose

Results

Activities



AssumptionsAssumptions

An assumption is a condition : required for project success; which is not under the control of project

management; and which will need to be monitored

Assumptions provide the basis on which further risk analysis is carried out.



AssumptionsAssumptions

Assumptions may relate to such concerns as: The actions of other stakeholders not directly involved

in project management The response of target groups to the project’s services Effective donor coordination and timely fund

disbursement Price movements for project inputs or outputs Changes in relevant government policies

Note: Assumptions are written as positive statements while risks are written as negative statements



Is the assumptionimportant?

YesNo

Will it hold true?

Almost certainly

Possibly

Very unlikely

Do not include in the logframe

Include as an assumption

Is it possible to redesign the project in order to influence the external factor?

YesNo

The project is not feasible

Redesign the project by adding activities or results; reformulate the

project purpose if necessary



Objectively Verifiable IndicatorsObjectively Verifiable Indicators (OVI)(OVI)

OVIs should be SMART!

Specific: including clear targets;

Measurable: in terms of quality and/or quantity;

Available: at an acceptable cost;

Relevant: to what they are supposed to measure (horizontal logic);

Timely: produced in due time to be useful for project management.



Sources of VerificationSources of Verification (SOV) (SOV)The logical framework requires that one spells out how the indicators will be collected:

• Which methods? • By whom?• When/how often?

Activities, resources and costs required to collect this information must be included in the project design Project managers should focus on verifying the delivery of results and their contribution to the purpose

Admin records External sources



Sources of VerificationSources of Verification

Cost

Cost

ComplexityComplexity

Administrativereports

Managementreports

Availablestatistics

Adapted availablestatistics

Interviews withbeneficiaries

Specialisedsurveys



OVI & SOV - ExampleOVI & SOV - Example

Direct discharge of Wastewater by house-Holds and factoriesdecreased

River water quality improved

Living conditions of local people improved

Project Description

Objectively Verifiable Indicators

Sources of Verification

Overall Objective

Project purpose

Results70% factory wastewater & 80% household wastewater treated by 2008

Fish consumptionrelated disease rate down 80% by 2006

Fish catch up 80% until2006 (with stable stock)

Income from fish catchincreases 30% by 2006

Tourism revenue up by30% by 2006

Survey report of Municipalities

Regional hospital and medical statistics

Reports of River Authority and Cooperatives

Socio-economic surveyReport of Ministry of Economic Affairs



relevancerelevance

Overall objectivesOverall objectives

Project purpose

Results

Activities

Means

Problematic Situation

efficiencyefficiency

effectivenesseffectiveness

impactimpact

Sust

aina

bility

Link between Logframe and Evaluation



LFA: Avoiding Common ProblemsLFA: Avoiding Common Problems

emphasise the importance of the LFA process as much as the matrix product;

ensure stakeholders participate in the analytical process;

treat the matrix as a presentational summary – clear and concise;

refine and revise the matrix as new information comes to light; and

do not place too much emphasis on detailed target specification within the matrix during the planning stages.



550017504250 750 40011003100

Budget

550017504250 750 40011003100

Budget

SalariesAllowancesVehicle Op.Office Tel/FaxSeedsFertiliser

5000 55001250 17503750 4250

750 750400 400850 1100

2300 3100

Budget

WorkplanWorkplan

Workplan

Results-based activities, resource schedules and budgets

Logframe

From the LF to Operational PlanningFrom the LF to Operational Planning

Resource Schedule



Project Preparation – basis for Project Preparation – basis for implementationimplementation

PMC approach, the project fiche and the log frame help prepare the project for approval

…but approval of the project is just the start…. The tools also provide a framework for project

implementation Managers have a vital role to ensure successful

implementation



Project Project ImplementationImplementation

Poorly prepared and designed projects are more likely to fail

Failure means they are unlikely to achieve their objectives – so the money is essentially wasted

Failed projects can undermine the whole programme or sector of intervention

Failed projects can undermine the credibility of institutions

….but no project turns out totally as envisaged



Monitoring and evaluation is essential Monitoring of inputs (EU is keen on this) – for

example expert inputs, construction materials etc Financial monitoring – important! – overall

absorption, cash flow, co financing Monitoring of outputs – e.g. number of people

trained, kilometres of highway built




Evaluation is also essential• Ex ante evaluation prior to project approval• Mid term (during implementation)• Ex post (after completion)

Evaluation against achievement of long term objectives through results / impact

Qualitative / quantitative approaches Importance of base line data, indicators and

information




Project ImplementationProject Implementation

Monitoring and evaluation – key points Monitoring and evaluation follows logic of LFA Provides a management tool and shouldn’t be

seen as a threat No projects go exactly as planned Variance analysis is key – why are there

differences – when to intervene



WEB LINK

http://ec.europa.eu/europeaid/multimedia/publications/publications/manuals-tools/t101_en.htm



Other important project links

EU procurement Rules (PRAG)http://ec.europa.eu/europeaid/work/procedures/ implementation/practical_guide/

CFCU http://www.cfcu.gov.tr/

EC Delegation http://www.avrupa.info.tr/DelegasyonPortal.html



Teşekkür Ederim!Teşekkür Ederim!

Thank you!Thank you!

etcf is funded by the european union 1 project implemented by eurochambres & tobb introduction...

Documents

project development

european union

project preparation

eurochambres tobb slide

eurochambres tobb introduction

management slide

european commission

budget slide