Project Proposal and Concept Note

Project Proposal and Concept Note
Leonellha Dillon-Barreto, seecon gmbh
Project Proposal and Concept Note

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Project Preparation and Financing

Contents
1. Introduction to Projects in the Water and Sanitation Sector

1.1 From Vision to Projects
1.2 Definition of Project and the Project Cycle
2. Developing a Project Proposal and Concept Note
2.1 Definition of Project Proposal and Concept Note
2.2 Getting Ready to Start a Project
2.3 Project Planning
2.4 Writing a Concept Note
2.5 Budget Allocation and Resources Planning
References
Project Preparation and Financing 3


1.1 From Vision to Projects
A vision is an agreed long term projection of what the local water resource and
sanitation situation will be ideally in 20 to 30 year’s time.
Once the vision of the community has been defined and a long-term strategy
has been written, strategic objectives should be agreed, which will provide a
framework for planning future actions.
Strategic Future
Objectives Planning
Community’s Long-term Objective 1 Project 1
Vision Strategy
Objective 2 Project 2
Objective 3 Project 3
... ...
Objective N Project N
SOURCE: PHILIP, R., ANTON, B., BONJEAN, M., BROMLEY, J., COX, D., SMITS, S., SULLIVAN, C. A., VAN NIEKERK, K.,
CHONGUIÇA, E., MONGGAE, F., NYAGWAMBO, L., PULE, R., BERRAONDO LÓPEZ, M. (2008): Local Government and Integrated
Water Resources Management (IWRM) Part III: Engaging in IWRM – Practical Steps and Tools for Local Governments. Freiburg:
ICLEI European Secretariat GmbH.

So, the aim of the project should be:
achieving one or a defined number of strategic objectives and ultimately
the overall water and sanitation vision.
For instances:
Actions to be taken:
Strategic Objectives
Awareness raising campaign...
•To eradicate open defecation in
our town by 2015 Demand creation & Project 1
information campaign
• To increase the access to
improved sanitation facilities to Construction of new toilet
90% by 2020. facilities...
Project 2
•To safely reuse 50% of treated Construction of a treatment
wastewater in agricultural fields plant...
by 2020.
... But we also have to consider that:
Projects may also be stand-alone initiatives, not necessarily integrated into a
programme, with several projects contributing to one overall goal.

A world of opportunities:
Projects vary in scale, purpose and duration. Ideally in our SSWM approach,
they are to be initiated with the participation of the community, but it also
may be generated within an NGO or a municipality.
Small projects require modest inputs and produce tangible outputs within a
relatively short timeframe. At the other extreme, projects may require
substantial financial resources and only generate benefits in the long term.
SOURCE: L. Barreto Dillon
Despite the difference in scale and nature of projects, there are aspects of
sound project management that are universal.


1.2 Definition of Project and Project Cycle
A project is a unique venture to produce a set of outputs

within clearly specified time, cost and quality constraints.
Projects differ from standard business operational activities as they:

• Are distinctive in nature, not involving a repetitive process.
• Have a define time-plan, with a specified start and end dates to meet the
beneficiaries or funding agency’s requirements.
• Have an allocated budget, which should be spent to produce the
deliverables.
• Have limited resources, such as labour, material and equipment.
• Involve a risk, as there is a level of uncertainty whether the objectives will
be attained.
SOURCE: METHOD123 (2003): Project Management
Guidebook. URL: www.method123.com. [Accessed:
20.05.2010]


The Project Cycle In SSWM
Five stages are typically identified in the project cycle: Exploring
I Identification: generation of the initial Demand Creation
project idea
II Definition and design: detailed design
of the project addressing technical and Participatory Decision Making,
operational aspects Analysis and Planning
III Proposal preparation, approval and

financing: writing the project proposal,
securing approval for implementation
and arranging sources of finance
IV Implementation: implementation of Implementation
project activities, with on-going checks
on progress and feedback
V Evaluation: periodic review of project
with feedback for next project cycle. Ensuring Sustainability


2.1 Definition of Project Proposal and Concept Note
A project proposal is a detailed description of a series of activities aimed at

solving a certain problem.
The proposal should contain a detailed explanation of the:

• justification of the project;
• activities and implementation timeline;
• methodology; and
• human, material and financial resources required.
SOURCE: NEBIU, B. (2002): Developing Skills of NGOs,

Project Proposal Writing. Szentendre: The Regional
Environmental Centre for Central and Eastern Europe.


2.1 Definition of Concept Note
A concept note is a summary of a proposal containing a brief description of the

idea of the project and the objectives to be pursued.
Concept notes are prepare for:
some financing programs, funding agencies require a concept note before the
submission of a full proposal.
donors without a formal call for proposals.


2.2 Getting Ready to Start a Project
Tips to start successfully your project writing:
Identify potential funding options
Build a team for proposal development:

-Leader: coordinate all inputs and write core sections.
-Technical experts: brainstorming, give input in technical issues.
-Administrative staff: give accurate information related to budget.
Review carefully the Community Action Plan or the Vision Statement of the
Community.
Hold a kick-off meeting and share your ideas


2.3 Project Planning: a part of the Project Design
The project design is one phase of the project cycle. It consists of two elements:
• project planning (formulation of project elements); and

• project proposal writing (converting the plan into a project document).
Project design is a result of both project planning and the project proposal. Both
steps are essential to forming a solid project design.


2.3 Project Planning: Developing a Project Idea
In order to identify the project idea, different aspects have to be considered:

 Community vision of how the situation should be in a long term:
Desired Current
situation gap situation
need
Project
Community needs assessment is a key step to project design, as it helps addressing

the problems of the targeted local community.
Setting priorities:
out of all the goals to be achieved, priorities have to be set to decide which
project to carry out first. Priority problems falling into the scope of the
stakeholders, your organisation, the State policy and the donor shall be selected.
Actor/Problem Problem 1 Problem 2 Problem 3
Stakeholders 3 1 2
State 2 1 3
Donor 3 2 1
Organisation 2 3 1

Thematic area of the potential donor:

Each external funding agency, private donor and governmental office defines a set
of thematic areas for the funding activities in a period of time. It is important to
thoroughly read and understand the Guide for Applicants of the different
sponsoring programs, before you embark in a proposal preparation.
Your own capacity and experience:

As the development of a project proposal takes a lot of
efforts, it is better to concentrate in those areas in which
your organisation has the most experience with.


2.3 Project Planning: Defining the Problem
A problem is a negative undesired situation. It might create imbalance. It

requires adaptation with the social, economic, educational, health or
environmental conditions in the community.
When formulating the problem, you should Example:

clearly specify:
•50% of the citizens of village (X)
1- Reasons suffer from the garbage
scattered everywhere in the
2- Results
streets.
3- Magnitude (number or percentage of
•100% of the citizens of village (z)
impacted persons)
drink contaminated water.
4- Place of the problem
5- The impact of the problem on other
problems especially poverty SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal
Writing. Szentendre: The Regional Environmental Centre for Central and
environment, women and unemployment. Eastern Europe.


2.3 Project Planning: Analysing the Problem
This means placing and organising the collected data and information in a logical
sequential easily understandable manner that breaks down the problem into
root and secondary causes; thus facilitates pinpointing the problem, the causes
and implications.
In order to do this, you should use the tool “Problem Tree Analysis”
Results from the problem Results from the problem
Main Problem
Main and direct cause Main and direct cause
Indirect and secondary cause Indirect and secondary cause



2.3 Project Planning: Defining Beneficiaries and Target Groups
Beneficiaries: are those who benefit from the project.
Target Group: the groups which would be positively

affected by the project at the “goal level”. This might
include the team from the partner organisation.
Final Beneficiaries: are those who would benefit from the
project at the long run at the group or community level,
eg. Children, as a result of spending on health and
education; or consumers due to improving agricultural
production and marketing.
The project should provide a detailed description of the size and characteristics of
the beneficiaries, target groups and final beneficiaries of the project.
The criteria for target group analysis may be ethnic composition, gender, age, etc.


2.3 Project Planning: Defining the Goal of the Project
It is a long term goal (mostly at the national level) this particular project
together with other projects contribute to its achievement
Tips for Setting a Project Goal Example:

1. There should be only one goal per
project.
•improving the quality of life in
2. The goal should be connected to the the community Z
vision for development.
3. It is difficult or impossible to measure
the accomplishment of the goal using
measurable indicators, but it should be
possible to prove its merit and The goal is defined as
contribution to the vision. “it contributes to …”
SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre:
The Regional Environmental Centre for Central and Eastern Europe.


2.3 Project Planning: Defining the Objectives of the Project
The objectives should address the core problem in terms of the benefits to be
received by the project beneficiaries or target group as a direct result of the
project. Project objectives provide a more detailed breakdown of the project
goal. A project will likely have multiple objectives.
Example:
Requirements of drafting
Characteristics: the project objective:
•Increase the number of families
•Specific •percentages or figures from village Z in quantity X who
•Measurable •place specified live in a clean garbage-free
environment within Y years.
•Applicable •target group specified
•Improve the water supply in
•Realistic •time-specific quantity X and quality Y for the
•Timely •positive desired state population of village Z in the next
N years.


2.3 Project Planning: Defining the Results of the Project
Results describe the services or products to be delivered to the intended
beneficiaries. This is what the project management is promising to deliver. The
results are more detailed than the objectives and the goal, and should be
possible to measure through the use of objective indicators.
Example of Results:
An indicator is the signal
indicating the achievement of the set
goal. An indicator is used to judge the
•Increase number of families
level of success, it is mostly a figure,
living in a clean garbage-free
percentage or ration. An indicator is the
environment.
unit measuring how far a certain result is
achieved using a benchmark or a standard, •Increased number of households
yet it doesn’t demonstrate the trend or connected to the water supply
the change. Example: system; and
-Number of new water taps in the village •Increased number of water taps
in the village.

2.3 Project Planning: Defining the Activities of the Project
The tasks to be undertaken to achieve the aspired results.
Selection criteria of the activities:

1- Proper (practical): the organisation and the community have the financial,
administrative, and technical ability to carry out the planned project.
2- Acceptable: the activity should be acceptable to the community and official
bodies.
3- Effectiveness: it leads to achieving the aspired results.
4- Efficiency: the less the cost of the activity and the more the number of people
it serves, the better.
5- Sustainability: to continue throughout the period specified to reach the result
and solve the problem.
6- Has no negative impact on the environment. “Activities are defined using an
action verb in a present tense, eg.
Design, draw up, search,
Project Preparation and Financing
construct…” 22

2.3 Project Planning: Project Tree
Hierarchy of Goal, Goal Problem

Objectives, Results
and Activities
Objective 1 Objective 2
Result 1 Result 2 Result 3
Activity 1 Activity 2 Activity 3 Activity 4


2.4 Writing a Concept Note: Purpose
A concept note is a brief outline of your proposed project.
The purpose of a concept paper:
For the funding agency: is to help applicants develop more competitive

proposals and to save time by eliminating proposals that are not likely to be
funded.
For the applicant: is to capture the interest of the funding agency and
demonstrate that the idea they are proposing is worthy of further
consideration.
Therefore, the first sentences of a concept paper are very important. You
want the funding agency representatives or board members to continue
reading!

2.4 Writing a Concept Note: Length and Format of the Document
The length and the format for writing a concept note actually depend upon the
donor agency.
Usually donors do not have a format for a concept note as they have for a full
proposal.
Most donor agencies request a minimum of three pages to a maximum of five

pages.
So, the shorter the better!


2.4 Writing a Concept Note: Template
1. Title: it should be snappy, informative, and distinctive. It may be divided

into two parts with the first one being short and catching the readers’ attention
and the second one more ‘serious’ and informative.
2. Background: include your problem and its analysis, together with the
following two guiding questions:
•Why it is crucial to address the problem identified?
•What has already been done to solve the problem?
3. Objectives: they should relate to the more general aim as previously agreed
and entered into the local action plan. (Keep in mind the Project Tree!)


4. Outputs: they should be directly related to the project objectives. Typically

they are tangible items, such as a newly constructed technical facility, the
publication of information materials, or events, such as workshops or
stakeholder meetings. Depending on the project in question, intangible items
might also be mentioned, such as a rise in awareness.
5. Activities and duration: a summary of the planned activities to achieve the

project objectives should be included here.


6. Beneficiaries and impacts: this section will be important for getting “buy-
in” from the donor. It should contain:
•The expected benefits, both in quantitative and qualitative terms, and when
and where they will occur.
•The underlying assumptions and the reasons why these benefits can be
expected for a specific group of beneficiaries.
•Considerations concerning how and by whom the impacts will be assessed.
7. Project management (includes monitoring and evaluation): this section

should explain how the objectives will be achieved and how the project will be
managed and evaluated. It should become clear who will lead the project and
what roles and responsibilities the various people in charge of tasks such as
financial management, monitoring and evaluation will have.
8. Budget


2.4 Writing a Concept Note: More tips
Don’t overwhelm the reader with details!

Consider your audience.
Consider your language.
Only include budgetary information if it is specifically requested.
Appearance is important.
Identify a door opener if you are not writing your concept note for an
announced call from the organisation. submission.


2.5 Budget Allocation and Resource Planning: Definition
A budget is defined as patterns of expenditure and revenue over the life of the
project.
Realistic planning of finances is key to the implementation of a project or

program.
Generally, the budget has mainly two functions.

1. it estimates, as realistically as possible, the cost of
completing the objectives identified in the project proposal.
2. It provides a means to monitor the project's financial

activities over the life of the project.


2.5 Budget Allocation and Resource Planning: How to start?
Typical categories may be, for example:
● people
● travel costs
● vehicles
● equipment
● consumables and supplies
● Sub-contracts


2.5 Budget Allocation and Resource Planning: Identifying the Resources
needed


2.5 Budget Allocation and Resource Planning: Direct costs
“Direct costs are all those eligible costs which can be attributed directly to
the project and are identified by the beneficiary as such, in accordance with
its accounting principles and its usual internal rules”. Direct costs can be:
● Personnel costs: they should reflect the total remuneration, including
salaries plus social security charges (holiday pay, pension contribution, health
insurance, etc).
●Travel and subsistence allowances: first determine what travel expenses
the granting agency will allow, and then itemize the cost of each trip, e.g.,
round-trip airfare, lodging and meals, taxis, visa, etc.
●Vehicles: usually this cost will be included in the travel and subsistence
item.
●Durable equipment: any item which will retain its usefulness beyond the
grant period is considered capital equipment.
●Consumables and supplies: stationery, duplicating supplies,
typing/computing supplies, and software. SOURCE:
Indirect
EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7
Actions. Seventh Framework Programme. URL:
ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
Project Preparation and Financing [Accessed: 08.05.2010] 33

2.5 Budget Allocation and Resource Planning: Indirect costs
Indirect costs are all those eligible costs which cannot be identified by the
beneficiary as being directly attributed to the project, but which can be
identified and justified by its accounting system as being incurred in direct
relationship with the eligible direct costs attributed to the project.
Indirect costs, also called overheads, F&A and Facilities & Administrative Costs,
typically are costs of:
•operating and maintaining buildings (electricity/gas/water bills),
•grounds and equipment,
•depreciation,
•general and departmental administrative salaries and expenses
•library costs. SOURCE: EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7
Indirect Actions. Seventh Framework Programme. URL:
ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
[Accessed: 08.05.2010]


2.5 Budget Allocation and Resource Planning: More tips!
It is important that the budget is realistic.

Before preparing a budget, determine what would be an appropriate amount
to request.
The numbers should be specific.
Your planning should allow for contingencies.
Some donors require that some part of the cost of a project be borne by the
applicant institution.

References
EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7 Indirect Actions. Seventh Framework Programme.
URL: ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
[Accessed: 08.05.2010]
METHOD123 (2003): Project Management Guidebook. URL: www.method123.com. [Accessed: 20.05.2010]
NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre: The Regional Environmental Centre for
Central and Eastern Europe. URL: http://documents.rec.org/publications/ProposalWriting.pdf
[Accessed: 07.08.2010]
NETSSAF (2008): The NETSSAF Participatory Planning Approach. A Tutorial for Sustainable Sanitation. URL:
http://www.netssaftutorial.com [Accessed: 14.05.2010]
PHILIP, R., ANTON, B., BONJEAN, M., BROMLEY, J., COX, D., SMITS, S., SULLIVAN, C. A., VAN NIEKERK, K., CHONGUIÇA, E.,
MONGGAE, F., NYAGWAMBO, L., PULE, R., BERRAONDO LÓPEZ, M. (2008): Local Government and Integrated Water Resources
Management (IWRM) Part III: Engaging in IWRM – Practical Steps and Tools for Local Governments. Freiburg: ICLEI European
Secretariat GmbH.
PPIAF –PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY- (2010): What are Public-Private Partnerships. URL:
http://www.ppiaf.org [Accessed on 14.05.2010]
SONI, P. (2005): Solution Exchange for WES-NET India. WES-NET India -Water & Environmental Sanitation Network-. URL:
http://www.solutionexchange-un.net.in/environment/cr-public/cr-se-wes-29070501-public.pdf
[Accessed on 16.05.2010]
TRÈMOLET, S., PEREZ, E. and KOSLKY, P. (2007): WSP Sanitation Financing Study. Methodological Note. URL:
http://www.susana.org/images/documents/07-cap-dev/a-material-topic-wg/wg02/tremolet-et-al-2007a-methodological-
note-sanitation-wsp-en.pdf
[Accessed on 16.05.2010]
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Project Proposal and Concept Note

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Project Preparation and Financing

1. Introduction to Projects in the Water and Sanitation Sector

Project Preparation and Financing 3

1. Introduction to Projects in the Water and Sanitation Sector

1. Introduction to Projects in the Water and Sanitation Sector

1. Introduction to Projects in the Water and Sanitation Sector

SOURCE: L. Barreto Dillon

Project Preparation and Financing 6

1. Introduction to Projects in the Water and Sanitation Sector

A project is a unique venture to produce a set of outputs

Projects differ from standard business operational activities as they:

Project Preparation and Financing 7

1. Introduction to Projects in the Water and Sanitation Sector

III Proposal preparation, approval and

Project Preparation and Financing 8

2. Developing a Project Proposal and Concept Note

A project proposal is a detailed description of a series of activities aimed at

The proposal should contain a detailed explanation of the:

SOURCE: NEBIU, B. (2002): Developing Skills of NGOs,

Project Preparation and Financing 9

2. Developing a Project Proposal and Concept Note

A concept note is a summary of a proposal containing a brief description of the

Concept notes are prepare for:

donors without a formal call for proposals.

Project Preparation and Financing 10

2. Developing a Project Proposal and Concept Note

Tips to start successfully your project writing:

Identify potential funding options

Build a team for proposal development:

Hold a kick-off meeting and share your ideas

Project Preparation and Financing 11

2. Developing a Project Proposal and Concept Note

• project planning (formulation of project elements); and

Project Preparation and Financing 12

2. Developing a Project Proposal and Concept Note

In order to identify the project idea, different aspects have to be considered:

Community needs assessment is a key step to project design, as it helps addressing

2. Developing a Project Proposal and Concept Note

Actor/Problem Problem 1 Problem 2 Problem 3

Project Preparation and Financing 14

2. Developing a Project Proposal and Concept Note

Thematic area of the potential donor:

Your own capacity and experience:

Project Preparation and Financing 15

2. Developing a Project Proposal and Concept Note

A problem is a negative undesired situation. It might create imbalance. It

When formulating the problem, you should Example:

Project Preparation and Financing 16

2. Developing a Project Proposal and Concept Note

Results from the problem Results from the problem

Main and direct cause Main and direct cause

Indirect and secondary cause Indirect and secondary cause

Project Preparation and Financing 17

2. Developing a Project Proposal and Concept Note

Beneficiaries: are those who benefit from the project.

Target Group: the groups which would be positively

SOURCE: L. Barreto Dillon

Project Preparation and Financing 18

2. Developing a Project Proposal and Concept Note