RELEVANCE OF LAND EVALUATION IN PROJECT APPRAISAL AND IMPLEMENTATION

ON EVM 534

BY

EZEAKOR JACINTA UCHECHUKWU

2018-135-016

SUBMITTED TO

THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

FACULTY OF ENVIRONMENTAL SCIENCES

CHUKWUEMEKA ODUMEGWU OJUKWU UNIVERSITY,

ULI CAMPUS.

LECTURER: SURV. DR. EZEMEDO

16th June, 2023

Evm 534

Concept of Project Appraisal

A review of the Ministry of Programme Implementation has shown that about

70% of project time or cost overruns are due to unrealistic assumptions at the
project formulation stage. It is therefore necessary to pay attention to this, often
overlooked, but vital aspect of project formulation. Project appraisal is the
process of analyzing the technical feasibility and economic viability of a project
proposal their costs. Project appraisal enables to take a decision on with long
term effects. During the appraisal stage, measurement of costs and benefits are
difficult as these are spread over a long term with high degree of uncertainty.

Technical Appraisal

Determines whether the technical parameters are soundly conceived, realistic

and technically feasible. Technical feasibility analysis is the systematic gathering
and analysis of the data pertaining to the technical inputs required and formation
of conclusion there from. The availability of the raw materials, equipment,
hard/software, power, sanitary and sewerage services, transportation facility,
skilled man power, engineering facilities, maintenance, local people etc.,
depending on the type of project are coming under technical analysis. This
feasibility analysis is very important since its significance lies in planning the
exercises, documentation process, risk minimization process and to get approval.

Checklist

- Physical scale
- Technology used & Type of equipments & Suitability conditions

- How realistic is the implementation schedule

- Labour intensive method or others

- Cost estimates of Engineering Data

- Escalation are taken care of or not

- Procurement arrangement

- Cost of operation & Maintenance

- Necessary raw material & Inputs

- Potential impact of project on human & physical Environment

Technical analyses of a project is aimed at ensuring the following:

i. To confirm the source of the project proposal, nature of the studies – including
feasibility studies undertaken before the proposal, and the nature of decisions
taken by all relevant authorities involved

ii. That the problem or the need to be resolved by the project has been clearly
stated iii. That the project has been clearly spelled out with the correct technical
design details (such as size, location, timing, and technology)

iv. That the required materials have been correctly determined and their source
identified

v. That the costs of the project have been clearly established, expected product
prices projected, and payment modalities and schedules agreed to

Financial Appraisal

To determine whether the financial costs and returns are properly estimated and
whether the project is financially viable. Following minimum details are
determined in the financial appraisal;
1. Total Cost

2. O & M Expenditure

3. Opportunity costs

4. Other costs

5. Returns on Investment over project life

6. NPV

7. CBR

8. IRR

Financial Analysis takes a hard look at the funding sources for the project both in

terms of completing the project and for its sustained operation. This analysis
should question if;

i. The HLG would fund the project from internal resources?

ii. The HLG would fund the project from external resources?

iii. The external resources would be borrowed funds?

iv. If the funds are to be borrowed, would the HLG be able to pay back the loan
with accrued interest?

v. Would the external resources be a grant from the central government or from
any other source?

vi. Would the HLG co-fund the project with an outside donor, whether it is a
central government or another development partner?

vii. Would effective cost recovery mechanisms aimed recouping the project costs
be put in place?

viii. Would financial management modalities be put in place to record the

transactions during implementation and operation of the project? Documents
could include cashbook, assets register, bank statements, balance sheet (accruals
accounting), income statements (or receipt and payment schedules), etc

Institutional Appraisal

To determine whether the implementing agencies as identified in the report are

capable for effective implementation, monitoring, and evaluation of the scheme.
Managerial competence, integrity, knowledge of the project, the promoters
should have the knowledge and ability to plan, implement and operate the entire
project effectively. The past record of the promoters is to be appraised to clarify
their ability in handling the projects.

Checklist

Whether the entity is properly organised do the job

Strength to use capability and take initiatives to reach the objectives

Openness to new ideas and willingness to adopt long term approach to extend
over several projects

Commercial Appraisal

The demand and scope of the project among the beneficiaries, customer friendly
process and preferences, future demand of the supply, effectiveness of the selling
arrangement, latest information availability on all areas, government control
measures, etc. The appraisal involves the assessment of the current
demand/market scenario, which enables the project to get adequate demand.
Estimation, distribution and advertisement scenario also to be here considered
into.

Environmental Appraisal

To see any detrimental environmental impacts and how to minimise the impacts.
Environmental appraisal concerns with the impact of environment on the project.
The factors include the water, air, land, sound, geographical location etc.
Depending on the nature of the project, it is important that the project is seen to
comply with the various environmental requirements as administered by the
National Environmental Management Authority (NEMA). Specifically, the project
should comply with the provisions of the National Environment Statute (1995)
and the Environmental Impact Assessment (1998). Environmental aspects that
projects would have to address include; 

 Public health and occupational safety 

 Control of air, water and land pollution  Management of renewable
natural resources (plants and animals) 
 Efficient use of natural resources through multiple use, recycling and
erosion control
  Conservation of unique habits (forests, game reserves) for rare species
and cultural preservation

Economic Appraisal

How far the project contributes to the development of the sector, industrial
development, social development, maximizing the growth of employment, etc.
are kept in view while evaluating the economic feasibility of the project.The need
for economic analysis arises out of the fact that Higher Local Governments (HLGs)
operate within limited resources. As a result, some difficult choices of where to
commit limited resources from a large pool of deserving and competing priorities
and needs must be made by HLG officials. The economic costs and benefits of a
project are estimated through the application of a cost-benefit analysis, i.e.
evaluating both the implicit and social cost-benefits of a project. For profit making
projects, profitability tools like Net Present Value, Internal financial rate of return,
Pay Back Period and Incremental Profit are used to estimate the viability of the
project.

HLGs do not generally operate on profit motivation when considering projects;

therefore, social cost-benefit analysis is most applicable for HLGs. In a cost benefit
analysis, one must ask basic questions as to what costs and benefits should
directly and indirectly accrue to the target beneficiaries in terms of poverty
reductions, enhanced savings, improved medical care, educational, water and
health services.
Legal Appraisal

To determine whether the project satisfies the legal issues related to land
acquisition, title deed, environmental clearance etc.

Project Appraisal - A Methodology

Approach

The cost and returns, estimated after discussions with concerned Engineers, are
projected for its life period of ten to fifteen years for which the loan is taken. The
Net Present Value (NPV) shows the percentage recovery of the capital cost within
its project life period. The Internal Rate of Return (IIR) indicates the percentage
returns of the individual projects over a fixed period for town.

Once the cost estimate is made and the cost of construction is known, the annual
returns are assessed. With the expenditure, construction period and the returns
per annum are known, the financial appraisal of the project-including the annuity
of loan repayment is assessed. Depending on the financial viability of the project.

Appraisal involves a careful checking of the basic data, assumptions and

methodology used in project preparation, an in-depth review of the work plan,
cost estimates and proposed financing, an assessment of the project's
organizational and management aspects, and finally the viability of project. It is
mandatory for the Project Authorities to undertake project appraisal or at least
give details of financial, economic and social benefits. Projects are examined for
technical, institutional/organizational/managerial, financial and economic point of
view depending on nature of the project. On the basis of such an assessment, a
judgment is reached as to whether the project is technically sound, financially
justified and viable from the point of view of the economy as a whole.

The concerned Technical Section in consultation with other technical sections

undertake the technical appraisal, wherever necessary. This covers engineering,
commercial, organizational and managerial aspects, while the Economic Appraisal
Section carries out the pre-sanction appraisal of the development projects from
the financial and economic points of view. Economic appraisal of a project is
concerned with the desirability of carrying out the project from the standpoint of
its contribution to the development of the national economy. Whereas financial
analysis deals with only costs and returns to project participants, economic
analysis deals with costs and returns to society as a whole. The rationale behind
the project appraisal is to provide the decision-makers with financial and
economic yardsticks for investment in the projects.

The techniques of project appraisal includes discounted techniques that takes

into account the time value of money and include (a) Net Present Value (NPV), (b)
Benefit Cost Ratio (BCR), (c) Internal Rate of Return (IRR) (d) Sensitivity Analysis.
Economic viability of the project is invariably judged at 12 percent discount
rate/opportunity cost of capital. However, in case of financial analysis, the actual
rate of interest i.e. the rate at which capital is obtained is used. For the
government-funded projects, the discount rate is fixed by the Government. In
case the project is funded by more than one source, the financial analysis is
carried out on the weighted average cost of capital (WACC) for each project.
Normally, if the project is financed through foreign grants, the financial analysis is
undertaken at zero discount rate. However, the economic analysis is undertaken
at 12% discount rate.

Many investment projects are addition to existing facilities/activities and thus

benefits and costs relevant to the new project are those that are incremental to
what would have occurred if the new project had not been added. During the
operating life of a project, it is very important to measure all costs and benefits as
the difference between what these variables would be if no project (without
project) were undertaken and what they will be should the project be
implemented (with project). It is very common error to assume that all costs and
benefits are incremental to the new project when, in fact, they are not. Hence,
considerable care must be taken in defining a “ base case” which realistically sets
out the profile of costs and benefits expected no additional investment is
undertaken.

Social Costs –Benefits Analysis

Social Cost-Benefit analysis is an appraisal system that helps selecting socially
remunerative projects for implementation. Every project tends to use up
resources preempting its allocation in other uses. The inputs used up in the
projects constitute the social cost of the project. The process of Social Cost-
Benefit Analysis consists of determining the social feasibility or profitability of a
project by expressing its social benefits and social costs in terms of a common
counting device or numeral. If the social benefits of a project exceed its social
costs, it is qualified for implementation. Projects emanate from different sources,
such as individuals, firms or institutions, and Governments at the state and the
central levels. In instances when the state is not the owner, the traditional
yardstick of commercial or financial profitability is used for selection of projects.
In these cases the primary criterion is the profit potential for promoter or the
owner. But this may not necessarily result in socially most profitable project. But
then can decision makers overlook this vital aspect of project evaluation,
especially in a developing country?

A project has to be formulated and implemented in a social environment. Its

impact on the society in general and to the community in the near vicinity, in
particular, is a major concern to be taken into account at the time of project
formulation. This includes land acquisition, rehabilitation, loss of livelihood,
adequate compensation, building up harmony with the community, through close
interaction. All these areas are importance. Yet very few projects have considered
it necessary to take these factors into account. Technoeconomic parameters are
only guidelines for project formulation. But then a project cannot be
implemented in a vacuum. It needs an elaborate support system. The Project
Manager has to seek outside intervention for the support system. This where, a
manager who is essentially aware of the multiple dimensions of a project will be
better suited to exercise appropriate control over projects. We may think of the
river linking project in India. The project is yet to reach the pre-feasibility stage,
and already there is a public opinion building against it. Due to this increased
social awareness, project formulation methodology has to take account the social
impact of the project. This is a time consuming process. Often project authorities
are made to rush through project preparation stage, without spending adequate
time on project pre-feasibility study, ultimately leading to time and cost overrun.
Projects often face uncertain future, due to intense public opposition and
prolonged litigation. Public servants are often required to face the vagaries of
public opposition, It is well known that a project has both time and cost
dimensions. These two dimensions are interlinked. A time delay often means a
cost overrun, and a cost overrun can also lead to time delay, because of
budgetary constraints. Time and cost are the dimensions in which projects are
measured. But then there are web of other interconnected activities which also
impact on the project time and cost flow. Thus the main emphasis on a project,
even at the formulation stage is not the technical parameters alone but on the
control and coordination aspects.

Project Appraisal Report

The appraisal of a project would provide the project authorities the following
information for taking decision;

I. Does it meet the immediate and long-term objectives?

II. How does the project compare with other competing projects?

Project appraisal leads to overall assessment of the project’s chances for success
based on the findings of the feasibility analysis. It seeks to establish what will
occur, who will gain and lose, when the project’s impacts will occur and the
efficiency of the project investments in relation to the benefits derived. The form
of the project appraisal process depends on a variety of factors, such as the scale
and complexity of the given project, the nature of the organization involved, the
availability of professional staff, the importance attached to non-economic factors
and so forth. A project appraisal report should cover the following topics.

1. Description of the project proposal and its objectives;

2. Description of the current baseline conditions.

3. Economic and financial appraisal

4. Socio-cultural assessment

5. Environmental assessment

6. Overall assessment of the project proposal (findings of the project appraisal

process)

7. Conclusions and recommendations

8. Preliminary framework for project monitoring and evaluation.

Hassan - A Case Study of Good Appraisal

Hassan town in Karnataka State is chosen as a model town for taking up such an
exercise. This integrated Infrastructure Plan Programming for Hassan, through its
local body i.e., the municipality, is a well knit package of many programmes-
services and remunerative-integrated into one cohesive unit, instead of disjointed
projects planned without any inter relation among them. The exercise was taken
up to find ways and means of increasing the local body’s internal resources while
at the same time looking to lending agencies for financial assistance towards
schemes for provision of infrastructure facilities and other remunerative schemes
designed for resource augmentation and asset creation. It is now proposed to
study the existing service levels and finances, identifying the gaps, exploring the
possibilities of increasing the revenue and reducing the expenditure to bolster up
the savings. The next step would be to estimate the funds required to take up the
service and remunerative projects and assess the capability of the municipality to
borrow and finally prioritise the schemes to meet its purpose.

It was followed up with the discussions on the markets, shops, parks and play
fields in the town some of which are remunerative. So with the views expressed
on service and remunerative projects gathered from the public, discussion with
the municipal officials, officials of the other departments, Boards such as Water-
Supply and Drainage, Housing, Slum Clearance, were taken up in two or three
informal group meetings to arrive at the possible proposals for meeting the
problems and the needs of the community. This was followed by the spot visits to
the places identified for action. Estimates were then prepared for the identified
projects. In the case of remunerative projects they were tested for their financial
viability. Along with the Projects costs, the operation and maintenance cost, the
resulting annuity payments of loan with interest were also worked out. The
already existing municipal budget with receipt, expenditure, existing debt service
ratio (Ratio of loan repayment to total receipts excluding grant) is projected for
the next five years and to these are added new projects, their income,
expenditure with new debt service ratio of existing and new projects and the net
financial status.

Alternative Scenarios:

a) Revenues can be increased through traditional and innovative methods.

b) Expenditure can be reduced.

c) New projects can be undertaken to generate more funds.

d) Cutting down some projects itself or pruning down some items of one project
or more, to bring down the capital cost requirements.

e) If grants are available for service projects, to work out some loan grant mix.

So different scenarios were tried with various permutation and combinations of

the five principles enunciated above to bring the debt service ratio below 25
percent and at the same time aim at surplus balances.

Case study: Building a Pit Latrine with 4 stances at one of the schools in Kasese,
Kyabarungira Sub County:

This case study is sourced from the New Vision of Monday, August 4th 2003.
Summary data of the proposed project: 1. Name: Modern Pit Latrine in Kasese
District, Kyabarungira sub county. 2. Location: Kyabarungira Sub County 3.
Proposed goal: Improvement of sanitary conditions in Kasese suffering from
shortage of Latrines.

4. Project Execution: School authority, parent associations, civil society and

Kyabarungira sub-county authorities.
5. Financing: School authorities, Kyabarungira sub county council, Kasese District
Coucil, Ministry of Education and possibly a donor and international NGOs.

Project description: According to the New Vision text, (see page 25) shortage of
latrines has hit Kasese schools. It is revealed that Ministry of Education’s policy
stipulates one stance for only 25 pupils. In contrast, the current status in Kasese
schools is one stance for 120 pupils. This reveals that there is urgent need for
about four extra stances for one stance in use.

The proposed project is therefore to initially build 4 pit latrines of 30 feet deep, 4
feet wide and 20 feet long with 5 separate square stances 4*4, 5 doors and 5
windows at one of the schools in Kyabarungira sub county.

Land Tenure

The Land Use Act of 1978 vested the control of lands on the State Governors.
However, the de-facto land tenure rights follow the traditional usufruct system,
which is governed by customary law. Under the customary land tenure system,
the village head maintains the traditional community control of the land.
Recognised family members have the customary rights to use the land once they
have cleared it. The land will revert to the community only when it is left fallow
for a long time and upon the death of an heirless cultivator. While relatively few
registered land titles exist in rural Nigeria apart from a few commercial irrigation
schemes under which holdings in the command areas have undergone cadastral
surveys and demarcation in order to facilitate management of the schemes. For
the most part,entitlements to land dependent on customary land rights based on
the testimony of village heads. Generally these customary land rights may be
defended in local courts in cases of conflicts. Although the Land Use Act is
balanced in that it does not discriminate on the basis of gender, the defacto
customary tenure system makes access to land by most women to be through
their male family members. This implies that women are disadvantaged in that
they cannot use land as collateral for raising development financing. Exceptions
are in the northern and middle belt states where Islamic law has influenced land
inheritance system and women may inherit religiously prescribed shares of their
parents’ land, usually equivalent to a half of the share apportioned to male heirs.

Land can also be bought, leased or acquired through pledging. In fact, about 40%
of farmers, use a combination of these tenure systems to improve their access to
land. Transhumance herdsmen remain largely outside the existing land tenure
systems and generally have no security of tenure. The consultative spirit pursued
in the design of the FDP in which all stakeholders are involved and the livestock
support activities planned under the project would influence tenure
arrangements in favour of transhumance and sedentary herders without
penalising arable farmers. The Land Tenure studycommissioned by the Bank to
recommend strategies for Bank Group support to land tenure issues especially in
the Central and West African sub-regions sees these all inclusive consultations
and dialogue as the most practical way ahead. This is in view of the current
situation in which traditional land management systems dominated by land chiefs
and clan lineage leaders are loosing influence while the new state institutions and
related legislations are either not yet in place or are ineffective. The study calls for
Bank Group increased support for such dialogues and support to the development
andimplementation of land legislation.

Concept Of Land Evaluation

Shrinking land availability, increasing land degradation and expanding population

necessitates the wise use of lands. Appraisal of land is essential for its apt use.
Land quality attributes determine its usage in general. Accordingly all land
evaluation process evaluates these land quality factors either directly or
indirectly. Land evaluation process usually co-associates with soil survey. Soil
survey and land evaluation helps better land use planning and management.

Land evaluation is the process of estimating the potential of land for alternative
kinds of use (Dent and Young, 1981). The utilities may be of i) arable farming, ii)
livestock production, iii) forestry, iv) catchment protection, v) recreation, vi)
tourism, vii) wild life conservation, etc. Brinkman and Smith (1973) defines as the
process of collating and interpreting basic inventories of soil, vegetation, climate
and other aspects of land in order to identify and make a first comparison of
promising land use alternatives in simple socio-economic terms.

Land evaluation correlates soil survey information, climate, vegetation and other
aspects of land with the specific use for which land is evaluated. In this process,
the suitability of the land is assessed and classified. In addition it compares
economic benefits obtained and the inputs needed on different types of land
uses. Evaluation is made in terms of relevance to the physical, economic and
social context of the area concerned. Thus land evaluation is a multi-disciplinary
approach.

Land Evaluation Methods

Land is evaluated by means of qualitative and quantitative approaches that are

described in detail below:

A. Qualitative approach

Qualitative land evaluation is used as a preliminary tool before extensive surveys

are to be made. This method ranks the land for specific uses in qualitative ways in
any of the following means.

i) Land Capability Classification

It is an interpretative grouping of soils based on inherent soil characteristics, land

features and environmental factors that limit the land use or impose risk of
erosion. The main objective is to classify soil mapping units according to their
ability to support general kinds of land use without degradation for farm
planning. Based on the capabilities and limitations to crop production, land is
grouped into eight capability classes. Capability class refers the general degree of
'goodness' in the sense of 'possible intensity of cultivation use. Land capability
classes are subdivided into different sub-classes on the basis of kind of
predominant hazard, limitation or conservation problem. Capability unit is a
division of the subclass nearly identical in its management requirements. The
degree and general type of limitations are the same in a subclass, but there may
be important management differences.The land capability classification gives
general idea about the capability of the soils but does not explain specific crop
performance unless supplemented by additional information. This method could
be followed effectively for highlighting the conservation oriented limitations
which need immediate attention and for broad grouping of soils into agricultural
and non-agricultural lands.

ii) Land Irrigability Classification (LIC)

This classification system predicts how the land would appear if irrigated and/or
drained, including changes in water table, salinity or sodicity, and land shaping.
The objective of LIC is to select lands for irrigation development, and to
characterize their main management factors. This identifies arable lands that are
suitable for irrigation and identifies the irrigable lands that will be actually
irrigated within the arable lands. Arable land may not be irrigated because of
geographic constraints, such as unfeasible delivery of water, or an isolated or
odd-shaped parcel. It is useful for selection of irrigable lands, estimation of water
requirements, development costs and benefits from irrigation.

Subclass refers the dominant limitation with in the particular land irrigability class.
The subclass has few capability units based on uniformity in management. Land
irrigability units are the group of lands that are nearly alike in suitability for
irrigation.

iii) Land suitability classification

Land suitability classification refers to the fitness of a given type of land for a
defined use. Suitability classification is arrived on the basis of soil survey
information, economic conditions, social analysis and kinds of land use. The
categories recognized in land suitability classification are order, classes, sub-
classes and unit. There are two orders viz., suitable (S) and non-suitable (N).
Depending upon the purpose, scale and intensity of study either all or limited
number of categories may be adopted.

Soil suitability models for specific crops are dependent upon the suitability criteria
under the existing management conditions. Since the suitability of a soil to the
crop is determined on the limiting characteristics (s), the suitability of a soil with
respect to a crop might be underestimated. Capability and suitability differs each
other in significant manner. Capability refers to general kinds of land use rather
than suitability of land areas. Thus we can’t expect to make detailed statements
about land use and management in capability classification.

B. Quantitative approach

Quantitative land evaluation quantifies the benefits obtained from the land
physically. It is usually carried out as a basis for economic evaluation but it is
relatively difficult task. For quantifying benefits, all land parameters are
determined.

i) Storie Index Rating

Rating of soil for specific use can be arrived based on soil characteristics. Storie
Index (Storie, 1978) expresses numerically the relative degree of suitability of soil
for general intensive agriculture. The rating is based on four factors viz., soil
profile characteristics, surface texture, slope and other factors like drainage,
alkalinity, etc.Final index is arrived by multiplication each rating which is used for
evaluation. One moderate factor can reduce the value of index considerably and
hence its use is limited.

ii) Productivity rating

Riquier et al., (1970) have evolved a system of soil appraisal in terms of actual and
potential productivity. It is a modified version of Storie Index. Nine factors viz.
moisture (H), drainage (D), depth (P), texture (T), base saturation (N), soluble salts
(S), organic matter (O), CEC (A) and mineral reserves (M) are rated on a scale 0-
100 and the percentages cumulatively multiplied to obtain Productivity Index (P).
Productivity index is obtained using the below formulae:

PI = H x D x P x T x N x S x O x A x M

In a similar manner the Potentiality Index (P’) is calculated after providing possible
management measures in terms of reclamation, fertility management and others.
The ratio between these two ratings indicates the extent to which productivity
can be improved. This ration is called as co-efficient of improvement.
 Potential productivity rating

Co-efficient of Improvement = Present productivity rating.

This system does not explain the yield variability and assigning values to factors
like drainage is difficult. Secondly, one limiting factor reduces the productivity
index greatly. In addition, factors should be chosen according to the limitations
affecting the crop growth within a particular region to obtain a more realistic
productivity rating.

The role of land evaluation in project appraisal and implementation

Feasibility appraisal

Most major investment agencies require that the completed feasibility study be
subject to a review by an Appraisal Mission. Following completion and submission
of the project proposals, a review carried out by the Appraisal Mission leads to
the final decisions as to whether the project should be implemented, modified or
rejected.The main purpose of the Appraisal is to confirm that the project is:

- in conformity with the country's development objectives and immediate

priorities;

- technically sound, and the best of the available alternatives under existing
technical and other constraints;

- administratively workable;

- unlikely to affect the environment adversely.

The Appraisal Mission prepares a report that provides technical, economic and
financial justification of the proposed and revised project, for review by the donor
agency management and for loan negotiations with the borrower. Commonly,
modifications and 'conditions' are agreed at this stage, prior to funding and
implementation.The report of the Appraisal Mission is a comprehensive, concise
document that deals with the following aspects of the feasibility study:
i. the government's policies for agricultural development and particularly for
irrigation development, insofar as they are relevant to the delineation of the area
to be irrigated;

ii. the physical resource base as reported in the land evaluation studies and the
cropping, irrigation and management proposals;

iii. the socio-economic examination of the people in the project area to ensure
that the proposed development is appropriate to their attitudes and abilities, and
that the facilities will be utilized;

iv. the engineering options for irrigating and draining the project land, and of their
phasing, in order to ensure that the most economical but realistic solution is
selected;

v. the preliminary design of, and a construction schedule for both civil and on-
farm works, in order to demonstrate their suitability and to estimate their costs
(and the phasing of those costs) and operational characteristics;

vi. the scheduling of the land use changes in agriculture (size and type of farm
enterprise, land use, changes in crops and their yields) on the basis of physical
and human resources, marketing possibilities and forecast prices;

vii. the phasing of the various measures and inputs necessary to achieve the
agricultural plan;

viii. the management and organization necessary to construct, commission,

operate and manage the project, within the projected time schedule;

xi. the financial returns to the farmers and to the operating authority; the extent
of cost recovery by the government; the economic benefit to the country and the
environmental impact of the project.

The scrutiny of the land evaluation reports and maps and the Appraisal Mission's
findings on how the results of the land evaluation were used in the formulation of
the project plan, are important aspects of its work. In general, the Appraisal
Mission examines:
a. the data base on which the land evaluation is founded;

b. the description of alternative LUTs and the reasons for the choice of cropping,
irrigation and management systems;

c. the selection of class-determining factors and the specification of land use

requirements and limitations;

d. the relative importance or 'Significance' accorded to the class-determining

factors in the choice of land suitability classes and subclasses;

e. the consistency of mapping the 'provisionally-irrigable' area and the

considerations that were decisive in delineating the suitable land;

f. the revision of the land suitability maps to delineate the 'irrigable' area, the
incorporation of the results of drainage and other studies, and the revision of the
boundaries of land units on the basis of water supply considerations and NIIB;

g. the liaison between engineers, economists, agronomists, social scientists, and

other disciplines in reaching decisions on the proposals.

The Appraisal report is an independant assessment of the project with necessary

revisions of the feasibility study proposals. It is an essential preliminary prior to
funding the detailed design and implementation.

Project implementation and monitoring

Land evaluation reports and maps are used during the detailed design of
engineering works and in the layout of farms and fields. During the
implementation of a project, Supervision Missions representing the investor,
normally review progress periodically and provide the authority for changes in the
execution of the project, where necessary. The principal role of the Supervision
Mission is to ascertain that the project is executed and operated as set forth in
the loan documents, but revisions may be required as a result of unforeseen
circumstances. Essentially, development is a process of learning from experience
and it is necessary to adapt and update land evaluation reports, maps and the
plans based on them from time to time.
Irrigation projects always need to be monitored to ensure their continued
success. Feasibility studies and Appraisal Reports will contain recommendations
for monitoring and some of these will be derived from the land evaluation
studies. Monitoring of the groundwater table, soil salinity and sodicity, water
supply and use, and other changeable land characteristics are cautionary
measures that serve to warn of adverse changes in the dynamic environment. If
unfavourable trends become apparent, remedial action through management or
other changes can be implemented.In the event of major changes in cropping,
irrigation or management because of changed economic circumstances or
government policies, the land evaluation process can be reinitiated using the
existing inventories of land resources.

The rehabilitation of irrigation projects that have declined because of poor

management, social or economic changes, or environmental degradation, should
likewise be preceded by a re-evaluation of the land suitability, to ensure that the
rehabilitation measures are well suited to the physical, social and economic
conditions prevailing.

APPRAISAL OF PROJECT IMPLEMENTATION PLAN

As indicated earlier, project appraisal is the process of evaluating the salient

features of the feasibilitystudy of a project. Project duration or time profile of the
project is one of the basic evaluations incomparative appraisal of project ideas.
Project Network Analysis (PERT/CPM) is concerned withdevelopment of work or
implementation plan and establishment of the overall project duration. Itwill also
provide data and information on the quantum and timing of outflow of funds
required toimplement the project. These data and information are essential for
financial/budgetary planningand control and are of vital importance to project
authorities for proper and reliable scheduling ofthe repayment of loans along with
interest charges. The point to be assessed in the appraisal processis the
authenticity and dependability of the project implementation plan and schedule.
It needs to bechecked up whether this plan includes all the activities necessary for
achieving the project endobjectives. After the framework of the implementation
plan has been tested, it needs to be ascertainedwhether the time and resources
scheduling has been done on a realistic basis. If time is of essenceand happens to
be a crucial constraint in the overall scheme of things, it has to be checked up
whether the overall project duration will be in accordance with the time
requirements (or availability)of the situation. Another aspect to be assessed is
whether the project time schedule and the financialoutlays envisaged (including
their time phasing) are in balance.

Conclusion

Land evaluation classifies and groups the land according to their capability or
suitability for particular use. Hence all land use planning should be based on land
evaluation reports. This avoids improper use of lands and associated land
degradations. Further it helps in improving the land for better land use potential
by suggesting suitable remedial measures. In nutshell, land evaluation is the need
of hour to solve many of the land related major issues at present.

Reference:

Brinkman, R., and A., J. Smyth, 1973. Land evaluation for rural purposes. ILRI,
Wageningen, Netherlands.

Dent, D. and A. Young. 1981. Soil survey and land evaluation. George Allen &
Unwin, London.

Manikandan, K. (2007). Evaluation and development of suitable land resource

management technologies.

Riquier, J., D. Bramo D. L. and Cornet J. P.. 1970. A new system of soil appraisal in
terms of

actual and potential productivity (AGRL/TESR/70/6), FAO, Rome.

Storie, R. E. 1978. The Storie index soil rating revised. Spec. Publ. Div. Agric. Sci.
Univ. of California, Berkeley, No. 3203.