Introduction to

Public Sector Development

Public Sector Development
Lifecycle
Public Need

Results (meeting
Public Sector
Funds needs+economic
Development
activity)
Public Sector Projects in Pakistan(PC,2003)

Unsatisfactory Performance
• Cost over runs
• Long delays
• Poor quality
• Unsatisfied users
Public Sector Projects in Pakistan (WB,
2007)

World Bank – Pakistan Infrastructure Implementation Capacity Assessment Nov 22-07

Project vs. Project Management Failure
The significance of selection
Project Rs. 145
Management Loss of Electricity million/day – Rs
Failure production 52 billon/year
benefits from Ghazi
Brotha

Rs. 6.1
Inflation Impact of million/day – Rs.
inflation 2.3 billion/year
on cost
5 Point Agenda - 1985
Public Sector Development
Cycle
Development Planning
• Planning Commission of Pakistan
▫ …Projects have also been described as "the cutting
edge of development" - they put teeth into
development plans. For most development activities,
careful project preparation in advance of
expenditure is, if not absolutely essential, is at least
the best available means to ensure efficient economic
use of capital funds and to increase the chances of on-
schedule implementation. Unless projects are
carefully prepared in substantial detail,
inefficient or even wasteful expenditure of money is
almost sure to result; a tragic loss in capital short
nations…
Key Definitions

• The extent to which the cost of a development intervention

Efficiency can be justified by its results

• The totality of the effects of a development intervention,

Impact positive and negative, intended or unintended

Effectiveness • The extent to which objectives have been achieved

• The extent to which a development intervention conforms

Relevance to the needs and priorities of target groups

• The continuation or longevity of benefits from a

Sustainability development intervention
Results Chain
 Result chain includes Outputs, Outcomes and Impacts
linked by a cause-and-effect relationship over time

 Outputs – Short Term, Within control of the project team

 Outcomes – Short/Medium Term, intended effects of project
 Impact – Long Term improvements
Key Documents in Development Process

Document Purpose
PC-2 Survey/Feasibility Preparation
PC-1 Feasibility / Project Charter
PC-3 Project Progress Report
PC-4 Project Completion Report
PC-5 Annual post completion evaluation
- 5 years

PC-2 PC-1 PC-3 PC-4 PC-5

Feasibility Scheme Progress Closeout Evaluation
Public Development Process over 15%

Project Proposal Appraisal &

Execution
Identification Prepration Approval

Over Rs. 100 M Design /

Monitoring
Feasibility

Evaluation Closeout

Impact, Effectiveness
Success Efficiency
Relevance, Sustainability
Public Development Process
over 15%

Project Proposal Appraisal &

Execution
Identification Prepration Approval

PC-I
Over Rs. 100 M Design /
Monitoring
Feasibility

PC-III

PC-II

Evaluation Closeout

PC-V PC-IV
Important Parameters
15% change in scope 6.5%, 13% and 20%
once the PC-1 is cost escalation in year
approved 2, 3 and 4 of project

30% minimum local Feasibility required

consultants share in for projects over Rs.
consultancy contracts 200 million

PMU required for

projects over Rs. 100
million