PROJECT CONCEPTS

 A project is a proposal for investment to create, expand and/or

develop certain facilities in order to increase the production of
goods and/or services in a community during a certain period
of time.
Characteristics of a Project

 Investment Pattern

 Benefits or Gains

 Time Limit and

 Location
 The project is an economic activity with well defined
objectives and having a specific beginning and end.
LEVELS

Project work takes place at three levels:

 National level

 Sector level

 Project level
TYPES OF PROJECTS
Projects have been classified in various ways

 Quantifiable and Non-Quantifiable Projects

 Sectoral Projects
 Agriculture and allied sector
 Irrigation and Power
 Industry and Mining
 Transport
 Social Service
 Techno-Economic Projects

 Factor Intensity Oriented: Capital/Labor intensive

 Causation Oriented: Demand or raw materials based

 Magnitude oriented: Large, Medium Scale

 Financial Institutions Classification:

 New Projects
 Expansion Projects
 Modernization Projects
 Diversification Projects.

 Services Projects

 Welfare
 Service
R &D
 Educational Project
Dimensions of Project

 the catalytic agents of economic development

 initiate the process of development- production,

employment, income generation and so on.

 provide the framework of the future activities of the

enterprises.

 have long-term consequences

 Project commitments cannot be easily reversed.

 brings the necessary changes in society in course of time.

 accelerate the process of socio-cultural development.

 also initiate development of basic infrastructure and

environment.
Aspect ●
Preliminary
Aspects
s of ●
Feasibility
Project Aspects
Preliminary Aspects Feasibility Aspects

 Analyzing Product / service  Financial viability

 Marketing  Profitability

 Technical  Financial Projections

 Financial  Socio-economic desirability

 Economic
 PROJECT PLANNING CYCLE
Project
Ex-post
Project
Project
Implementatio
Identification
Preparation
Evaluation
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The essential requirements for project objectives are:

 specific, not general

 not overly complex

 measurable, tangible and verifiable, realistic and attainable

 established within resource bounds

 consistent with resources available or anticipated

 consistent with organizational plans, policies and procedures.

The objectives of a project can be for:

 Maximization of the market value of equity.

 Maximization of net present value.

 Maximization of return.

 Increase in the internal rate of return (IRR) at low risk.

 Increase in the net present value of monetary flows.

PROJECT PLANNING

Planning should justify,

 Planning would help to optimize the use of scarce

resources.

 Optimization and better utilization of the existing

resources.

 Results in the desired benefits.

 Within the budgetary provisions of a financing

institution.
PROJECT APPROACH

Sub-sector or product approach

Functional approach

Regional approach
Project Features

 Simplicity and clarity.

 Availability of attractive technology to promote the project.

 Integration of basic production services, especially those of

input supply, credit, marketing and extension.

 Compatibility of the project within the existing

administrative mix
PHASES OF A PROJECT

 Identification

 Formulation

 Appraisal

 Selection

 Implementation

 Management
THE BASIC TENETS OF MANAGING
PROJECTS
 Define the objective of the project.

 Determine the constituent tasks.

 Identify important milestones.

 Allocate resources to each task.

 Re-evaluate task relationships and scheduling, pinpointing

resource conflicts.

 Execute the project.