Development planning and project analysis II Lecture Note for 3rd year Economics student (Regular)

2019

Chapter Five: Project Evaluation and Impact Assessment

5.1. Concept of Project Evaluation

Evaluation: involves the systematic collection of information about the activities, characteristic and
outcomes of an activity or action, in order to determine its worth or merit. It is a systematic way of
learning from experience and using the lessons learnt to improve current activities and promote better
planning by careful selection of alternatives for future action.

Evaluation, in the context of project implementation, is an ongoing activity used to re-assess components
necessary to meet project objectives in the light of experience as implementation proceeds. As a tool,
evaluation can be applied at different points in the project cycle to elicit information for project
identification and, subsequently, project design (appraisal); for ongoing management (monitoring and
reviews); or for future development activities (post-evaluation studies).

It focuses on expected and achieved accomplishments, examining the results chain, processes, quality,
significances amount, contextual factors and causality, in order to understand achievements or what was
planned actually happened, and why it did or did not happen.

Evaluation Performed by:

The planner
Research group
Those responsible for implementation of the project
The Community
5.2. Reasons for carrying out project Evaluation
To review the implementation of and services provided by the project
To assess the progress of the project and identify reasons for any gap
To allocate resources in current and future project program
To rescheduling the project ( if the project run behind the schedule)
To assess project result: to find out if and how objectives are being met and are resulting in
desired changes.
To improve project management and process planning: to better adapt to contextual and risk
factors such as social and power dynamic that affect the project process.
To promote learning: to identify lessons of general applicability, to learn how different
approaches to participation affect out comes, impact and reach to learn what works and what does
not.

1
 Development planning and project analysis II Lecture Note for 3rd year Economics student (Regular)
2019

To understand different stakeholders’ perspective: to allow through direct participation in

monitoring and evaluation process and to design ways to resolve competing or conflicting views
and interests.
To ensure accountability: to assess whether the project is effectively, appropriately, and
efficiently executed to be accountable to the key agencies supporting the work.
To ensure that inputs, activities and outputs proceed according to plan
To determine whether the inputs are optimally utilized
To provide records of inputs, activities and output
To warn of deviation from objectives
To assist mangers in making decision

5.3. Principle and Steps of Project Evaluation

5.3.1. Principle of project evaluation

The following are some of the principle, which kept in view in evaluation
1. Evaluation is continuous process (continuity)
2. Evaluation should involve minimum possible cost (inexpensive)
3. Evaluation should be done without prejudice day to day work (minimum interference day to
day work)
4. Evaluation must be done on a cooperatives basis in which the entire staff and the board of
directors should be participating (total participation)
5. As far as possible, the institution itself evaluate it projects but occupational outside evaluation
should be undertaken (external evaluation)
6. The overall examination of the project should be reveal the strength and weakness of the project
(indicate strength and weakness)
7. The result of the evaluation should be shared with all the workers of the project (sharing the
result)

5.3.2. Basic steps of Evaluation

1. Establishing standards and criteria

2. Planning and methodology
3. Collecting data
4. Analyzing the data
5. Taking action
6. Re-evaluation

2
 Development planning and project analysis II Lecture Note for 3rd year Economics student (Regular)
2019

5.4. Types of project evaluation

Evaluation can be categorized under different heading based on timing of evaluation, part under take the
evaluation and stages of evaluation.
a. By timing ( when to evaluate): categorize in to two:
i. Formative evaluation
A formative evaluation assesses ongoing project activities. Done during the program: development stage.
Formative evaluation beginning during project development and continues throughout the life of the
project. Its intent is to assess ongoing project activities and provide information to monitor and improve
the project. It is done at several points in the developmental life of a project and its activities. Formative
evaluation has two components: implementation evaluation and progress evaluation.

Implementation Evaluation: The purpose of implementation evaluation is to assess whether the project
is being conducted as planned. This type of evaluation, sometimes called “process evaluation,” may occur
once or several times during the life of the program. The underlying principle is that before you can
evaluate the outcomes or impact of a program, you must make sure that the program and its components
are really operating and, if they, are operating according to the proposed plan or description.

Progress Evaluation: The purpose of a progress evaluation is to assess progress in meeting the goals of
the program and the project. It involves collecting information to learn whether or not the benchmarks of
project were met and to point out unexpected developments. By measuring progress, program staff can
eliminate the risk of waiting until participants have experienced the entire program to assess likely
outcomes. If the data collected as part of the progress evaluation fail to show expected changes, the
information can be used to fine tune the project. Data collected as part of a progress evaluation can also
contribute to, or form the basis for, a summative evaluation conducted at some future date.

Note: Progress evaluation is useful throughout the life of the project, but is most vital during the early
stages when activities are piloted and their individual effectiveness or articulation with other project
components is unknown.

ii. Summative evaluation

Taken up when the program achieves a stable operation or when it is completed. The purpose of
summative evaluation is to assess a mature project’s success in reaching its stated goals. Summative
evaluation (sometimes referred to as impact or outcome evaluation) frequently addresses many of the
same questions as a progress evaluation, but it takes place after the project has been established and the
timeframe posited for change has occurred. Summative evaluation collects information about outcomes
and related processes, strategies, and activities that have to them.

3
 Development planning and project analysis II Lecture Note for 3rd year Economics student (Regular)
2019

The evaluation is an appraisal of worth, or merit. Usually this type of evaluation is needed for decision
making. The decision alternatives may include the following: disseminate the intervention to other sites or
agencies; continue funding; increase funding; modify and try again; and discontinue.
b. By organization undertake the evaluation : who is evaluate; categories in to two:
i. Internal project evaluation: evaluation by the management itself
ii. External project evaluation: evaluation by the outsider
c. By stages:
i. Ongoing project evaluation: During the implementation of the project
ii. Terminal project evaluation: At the end of or immediately after completion of the project
iii. Ex –post project evaluation: after time lag from completion of the project

5.5. Criteria for Evaluating the Project

a. Relevance of the project: whether the intervention was appropriate. To what extent the
objective of the project is/are still valid. The possible questions are:
Are the activities and output of the project consistent with the overall objectives of the
project
Are the activities and output of the project consistent with the intended impact and effects
b. Effectiveness of the project: whether it achieved what it set out. A measure the extent to which
the project achieve its objectives. The possible questions are:
To what extent were the project objectives achieved or likely to be achieved?
What are the major factors influencing the achievement or non- achievement of the
projects
c. Efficiency of the project: whether it did so at the lowest cost. Efficiency measure the output in
relation to the input. The possible questions to be answered are:
Were the activities are cost efficient or not
Were objectives achieved on time?
What were the major factors influencing the achievement of the result by relate with cost
d. Equity of the project: whether the project equally benefiting the society. The possible questions
to be answered are:
Is the project treating its clients, consumers and the society equally
e. Impact of the project: whether it made a difference in the lives of people. The positives and
negatives changes produced by the project directly or indirectly. The possible questions to be
answered are:
What change happen as result of the project?

4
 Development planning and project analysis II Lecture Note for 3rd year Economics student (Regular)
2019

What real difference the project has made to the beneficiaries?

f. Sustainability of the project: whether it will lead to lasting change. Concerned with measuring
whether the benefits of the activities continue. The possible questions to be answered are:
To what extent did the benefit of the project continue?
What were the major factors influencing the achievement of the achievement or non-
achievement of the project.
5.6. Methods/ Techniques of Project Evaluation
So money of the methods used for evaluation of the project
First hand information: by getting first hand information about the progress, performance,
problem areas, etc. from the host of staff, line officers, field personal and other specialists and
public who directly associated with the project. Direct observation and hearing about the
performance and pitfalls further facilitate the chance of effective evaluation.
Formal /informal periodic report includes:
 Project states report: from this one can understand states, performance, schedule, cost and
deviations from the original schedule
 Project schedule chart: this indicates the time schedule for implementation of the project.
 Project financial status report: one can look it whether the project is being implemented
within the realistic budget.
 Graphical presentation: through display of charts, graph, pictures in the project office/ area.
 Staff meeting: weeks, month and annual
 Participatory review: stakeholder
 Sample surveys: of effects and impacts of initiatives as and where necessary
 Impact evaluation model using soft ware
 Matching Methods- Propensity score matching (PSM)
 Heckaman two stage impact evaluation with STATA