Project Development

and Management

Public Administration Program

Samal Island City College
Opening Prayer
 Session 4 – Project Evaluation and
Framework
Objective
Provide an overview of the major analysis required for project
evaluation and indicate the criteria for judging a project.

Public Administration Program

Samal Island City College
 Objectives of Project Evaluation
• The economic and social objectives of project evaluation are to
identify and promote the approval of capital investments that:
• Use resources efficiently
• Promotes sustainable development
• Treat individuals equitably by ensuring that no specific group is
materially disadvantaged as a result of an investment
• Improve the level of basic needs of the most needy

Public Administration Program

Samal Island City College
 Activity – Project Insights

1. As the discussion progresses, always put in mind the barangay

project you have chosen to be evaluated.
2. Inputs shall be provided by the teacher and after every
topic/area, each group will share their insights/opinions
considering the chosen barangay project.

Public Administration Program

Samal Island City College
 Topic 1 – Efficient Use of
Resources
• A project that alters resource allocation by drawing
resources away from their alternative uses is said to
improve economic efficiency if at least one individual
is made better and no one else is made worse off.

Public Administration Program

Samal Island City College
 Topic 1 – Efficient Use of
Resources
• A Pareto Optimum (Pareto Efficiency) occurs when
resources can no longer be reallocated to make some
economic agents better off without making one or
more individuals worse off.

Public Administration Program

Samal Island City College
 Topic 1 – Efficient Use of
Resources
• A modified criterion resource allocation is the
Potential Pareto Improvement.
• A Potential Pareto Improvement occurs when the
gains to those who benefit from a project are
sufficient to compensate those who are made worse
off and still leave residual benefit.
Public Administration Program
Samal Island City College
 Topic 1 – Efficient Use of
Resources
• This residual benefit is the net gain to society as a
whole.
• Only if this net gain is positive can a project claim to
make efficient use of resources.

Public Administration Program

Samal Island City College
 Topic 1 – Efficient Use of
Resources
• It is important to estimate economic benefits and
costs in order to determine whether a project is likely
to bring about potential pareto improvement in the
allocation of resources. This leads to the importance
of undertaking economic analysis of a project.

Public Administration Program

Samal Island City College
 Topic 1 – Efficient Use of
Resources

Any thoughts?
Insights?

Public Administration Program

Samal Island City College
 Topic 2 – Sustainable Development

• As defined by World Commission on Environment

and Development, sustainable development is
development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs.

Public Administration Program

Samal Island City College
 Topic 2 – Sustainable Development

• Sustainable development has three elements:

• Economic
• Ecological
• Socio-cultural

Public Administration Program

Samal Island City College
 Topic 2 – Sustainable Development

• Sustainable development considers these:

• Wherever possible, environmental externalities should be valued and
included in the economic analysis of a project
• Overexploitation of renewable resources is taken into account
• The importance of consultation with community groups and other
stakeholders in a project is stressed.

Public Administration Program

Samal Island City College
 Topic 2 – Sustainable Development

Any thoughts?
Insights?

Public Administration Program

Samal Island City College
 Topic 3 – Social Impact

• Project evaluation also considers if a proposed

project responds to the national objectives of poverty
alleviation, employment generation and income
redistribution.

Public Administration Program

Samal Island City College
 Topic 3 – Social Impact
• Project evaluation leads to an approach which
includes distributional analysis that helps determine
which groups in society – consumers, workers,
owners of productive resources, owners of natural
resources, taxpayers – are likely to be the main
winners and losers of a project.

Public Administration Program

Samal Island City College
 Topic 3 – Social Impact
• Distributional analysis allows decision makers to
estimate the impact of particular projects on
segments of society and helps them recognize groups
that would be net beneficiaries or net losers.

Public Administration Program

Samal Island City College
 Topic 3 – Social Impact

Any thoughts?
Insights?

Public Administration Program

Samal Island City College
 Assessment
 Choose one among these 3 topics: Efficient Use of
Resources, Sustainable Development and Social
Impact. Say something about it and elaborate your
answer by citing your chosen barangay project as an
example.

Public Administration Program

Samal Island City College
 Reference
 NEDA Reference Manual on Project
Development and Evaluation Volume 1

Public Administration Program

Samal Island City College
Closing Prayer