PROJECT CYCLE AND NEEDS

ASSESSMENT AND PROJECT

FEASIBILITY

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 PROJECT CYCLE
A project cycle is a sequence of continuous
events which a project follows. In 1970 the
World Bank identified the following five stages
which a project undergoes:
• Project identification ;
• Project formulation ;
• Project appraisal ;
• Project implementation ; and
• Project evaluation.
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 NEEDS ASSESSMENT
• Project needs are deficiencies which must be
fulfilled to enhance the realization of an
expectation by either group or community
• Different types of need;
– Expressed need;
– Normative need;
– Felt need;
– Need in form of want
– Comparative need ; and
– Professional need
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PICTORIAL DYNAMICS OF
FEASILIBILITY STUDY

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 FEASIBILITY STUDY
• A feasibility study is a preliminary study
undertaken to determine and document
projects viability- the discipline of planning,
organizing and managing resources to bring
about the successful completion of specific
project goals and objectives (Jaffe; 1967).

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• The term feasibility analysis is also used to
describe the preliminary analysis of an existing
system to see if it is worth upgrading all or a
part. After a feasibility study, management
makes a "go/no-go" decision. The go/no-go
decision is one of the most critical in project
planning.
• It is the point of no return. Once you have
definitely decided to pursue a project venture,
there is usually no turning back. 19
• The feasibility study will be a major
information source in making this decision.
This indicates the importance of a properly
developed feasibility study. A feasibility study
is undertaken during the preparation phase of
the project cycle prior to commencement of
actual implementation.

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• It is analytical and includes recommendations
and limitations which are utilized to assist the
project decision-makers when determining if
the project is viable (Drucker, 1985; Hoagland
and Williamson; 2000).
• Reconnaissance “ Observation to obtain
information by visual outlook and
interpretation”

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 IMPORTANCE OF FEASIBILITY
STUDIES
• 1. Surfaces new opportunities through the
investigative process
• 2. Identifies reasons not to proceed
• 3. Helps in identification of risks and potential
benefits associated with the project
• 4. Enhances the probability of success by
addressing and mitigating factors early on that
could affect the project.

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• 5. Provides documentation that the project
venture was thoroughly investigated and helps
in securing funding
• 6.  Helps re-look the project budget and rules
for its adjustment and create a prospective
project timeline

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 TYPES OF FEASIBILITY STUDIES
• Well-prepared feasibility studies examine and
question every aspect of the preliminary
design within the actual project environment.
They determine whether a project can be
satisfactorily carried out with the financial,
technical, human, material and organizational
resources available.

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• They also seek to establish whether, as
planned, the project will adequately serve or
fulfill the intended purpose without harming
the environment. Thus, together with design,
feasibility and appraisal function as the
interface between conception and reality.

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• They link the planning set of project tasks-
identification, formulation and preliminary
design-with the action oriented set of tasks-
selection and approval, implementation,
monitoring and evaluation (Mbeche, 2001).

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• Technical feasibility-This is normally
considered as the foundation of other
feasibility reports. It entails a thorough
investigation and analysis of the technical and
physical parameters to give an accurate
assessment of a projects capability. A technical
study establishes further design criteria,
undertakes precise studies to determine the
physical and technological alternatives to
meet the project requirements. 27
• (a) Site data ; Geology ;Soil condition;
Drainage characteristics; Climate conditions;
Water supply; Waste disposal; Power;
Transportation
• (b)   Choice of available technology;
Equipment and machinery; Manufacturing
process; Spare parts
• (c) Design ; Layout; Engineering requirement
• Construction materials (Local versus Imported)
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• Manpower
• Professional
• Technical
• Labour

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Economic;
• (a)   Demand and Supply
Domestic and Export
• (b)   Marketing programme
• (c)   Employment impact
• (d)   Raw material needs
Domestic and Import
• (e)    Costs and benefits
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• Environmental
• Physical / chemical
• Water/land/air/noise
• (b)  Ecological
• Species and population
• Habitat and communities
• Ecosystems
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(c)  Aesthetic
• Land/air/water/biota/manmade
objects/overall composition

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Social Political
• )   Social impact
• Culture and lifestyle
• Demography
• (b)    Political impact
• Equity
• Social justice
• Political organization
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• (c)    Community resistance
• (d)    Institutional resistance
• Legal constraints
• Stability of political support

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Financial
• (a) Project design implementation cost
• (b) Cash flow studies, profitability
• External
• Domestic
• (c)    Social funding
• (d)    Adequacy of funds

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Market(s)
• Demographic statistics
• (b)  Design, Delivery, Pricing, Competition
• (c)   Future government plans (central and
County/local)

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Schedule
• (a) Time frame
• (b)   Gantt chart-useful for planning and
scheduling projects. It is used to determining
the length and resources required for the task
at hand

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 WHO CONDUCTS FEASILITY
STUDIES
• Feasibility studies contain standard technical
and financial components. According to
Matson (2000), the exact appearance of each
study varies. This depends on the industry
studied, the critical factors for that project,
the methods chosen to conduct the study, and
the budget.

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• Emphasis can be placed on various sections of
an individual feasibility study depending upon
the needs of the group for whom the study
was prepared. For example, a feasibility study
conducted by National Environmental
Management Authority (NEMA) is likely to
focus on suitability of the environment and
the anticipated project impact on the
environment.
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• Most studies have multiple potential uses, so
they must be designed to serve everyone's
needs. The feasibility study evaluates the
project's potential for success. The perceived
objectivity of the evaluation is an important
factor in the credibility placed on the study by
potential investors and financiers.

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• Although in principle it is possible for a project
team member to conduct the feasibility study,
outsider consultants produce most desired
results. Prospective members and financiers
see the objective evaluation of a project
concept with a feasibility study as an
important aspect of the study.

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• Using an outside consultant brings objectivity
to the feasibility study rather than merely
providing the results that the group wants.
Consultants have a legal obligation to provide
a responsible analysis.

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• Once the consultant has been selected, the
group should provide detailed instructions on
the study requirements. This usually calls for a
Terms of Reference (TOR) and is normally
developed inline with the kind of study to be
undertaken. The contract should state clearly
the requirements and role of both the group
and the consultant. It should have timelines,
delivery dates, explicit deliverables, and what
is to be accomplished before payment is
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