THE PROJECT CYCLE

Definition:
 A project cycle may be defined as a continuous process or sequence
in the way projects are planned and carried out.

 The project cycle may be divided into the following stages:

1
Project Identification

6. Project Evaluation 2. Project Formulation

(Preparation & Analysis)

5. Project Completion
3. Project Appraisal
4. Project Implementation
&
Monitoring
 STAGE 1 :
PROJECT IDENTIFICATION
Stage 1 : Identification of potential projects [for new investment].

 Main objective : to enable the decision-makers, and the target group

, to select from a number of alternatives those project ideas to be
further developed.

 Therefore, project identification is a planning process which

aims at answering the question : WHY IS A PROJECT NEEDED?
 A project is justified only and only if it addresses
UNSATISFIED NEED(S)

 The planning system should produce ideas through its own channels,
through national, regional, and sectoral planning forces,
and in cooperation with the local people.
 Various sources of project ideas:
 Local people, and their local leaders
 Technical specialists, especially those operating in the area
 Reports on completed / on-going projects
 Market Survey or Research
 National development plans

 However, reality shows that project ideas can originate

from many different sources, such as: politician
visiting an area; an active district officer;
a group of local people or an interest group with a
problem; a donor government or organization.

o These project ideas may or, most probably, MAY NOT CORRESPOND
well to development priorities and local needs.
 If the planning system is functioning ideally it does not matter how
a project idea is born because it can be further analysed according
to a given priority.

 The project idea should always be related to concrete problems and

development opportunities which exist at local community level.

 In an ideal situation the process of project idea generation

should bring together two levels:

o The guiding principles and priorities from the planning system and,

o The practical knowledge of the problems and needs

at the community level.
 THE PRESENTATION OF PROJECT IDEAS

 Different kinds of resources are needed in order for a project

to be identified, formulated, appraised, and later implemented.

 Resources are scarce. It is necessary that the ideas for new projects
are presented to the planning system and to the decision-makers.

 Before any additional commitment is made, project ideas

should be considered in the light of the national, sectoral, and
regional objectives, priorities and policies, and the
needs of the local people.

 A thorough screening should be done to ensure that the projects

formulated are relevant and have a good chance of success.
 To facilitate screening, the project idea must be presented in
an organized way to the decision-making level in the form of
a short document / report (project profile or a project brief).

 The report should contain at least the following elements

at quite a general level:

 A description of the problem(s), target group(s), and

project justification;
 A definition of objectives of the proposed project;
 A definition of the primary outputs;
 The main activities needed to achieve the outputs; and
 A rough estimation of the total cost.
 Some possibilities for financing should be already explored