Housing Planning: Appraisal Methodology

PROJECT APPRAISAL

Once projects have been formulated, it is the job of the planner to appraise the project. That is, decide if the project should be:

Recommended for funding; or

That further work is required of a minor nature that can be completed quickly and then be considered for funding; or

That project requires further work and should be considered for funding in a future year; or,

Due to the complex nature of the project, feasibility needs to be undertake; or That the project should be rejected.

Feasibility Studies

Most donor funded projects involve a feasibility study, usually undertaken by external technical assistance, to provide sufficient information to make a funding decision. Any Project that is appraised as needing a feasibility study should then be modified and included in the approved list of projects cearly tiled as a feasibility study.

APPRAISAL METHODOLOGY

Projects are appraised under 3 headings: Relevance, Feasibility and Sustainability. Using the information supplied in the project profile from, the

Logical Framework Approach is used to assess the quality of the project proposal, assess the gaps in information supplied in the project profile, and decide which Appraisal Outcome should be assigned to the project, including if a feasibility study is needle. Ideally, issues of relevance, feasibility and sustainability were already addressed during project identification and formulation. However, many project proposals will not contain sufficient information.

Therefore, the appraisal involves:

Editing the proposal into a logframe format to assess the Relevance, Feasibility and Sustainability of the project, or

Checking the Relevance, Feasibility and Sustainability of a Log frame where one has already been prepared (for example, with a donor sponsored project).

The Logframe will assist to determine:

The adequacy of the target group description and problem analysis.

The relationship between stakeholders, identified problems, and the proposed project intervention.

The Completeness and coherence of project objectives, and the adequacy of assumptions.

The extent to which mechanisms to build sustainability have been incorporated into the project's design.

The adequacy of the proposed monitoring system.

The output of this analysis is a set of questions concerning the project's Relevance, Feasibility and Sustainability. If the project is large or complex and many questions remain, then these question could be incorporated into the Terms of Reference for a Feasibility Study.

Relevant:

Consistent with the policy and programming framework;

Within the institutional capacity of the project sponsor to implement

Addressing key problems of the sector or stakeholders, and takes account of key crosscutting issues such as gender and the environment);

Complements or is consistent with other ongoing and planned projects, programmes or recurrent activities

Feasible:

Strategy adopted by the project is realistic and within government policy (e.g. does not conflict with a private sector driven growth strategy)

The 'hierarchy of objectives' make sense and are logical (Project Objective, purpose, results and activites);

Cost estimates are sound

Assumptions made by the project are justified (the planner may have to identify these underlying assumptions during appraisal)

The project implementing agency has the management, coordination and financing arrangements to implement the project (including availability of complementary recurrent funds if required);

Sustainable:

There is adequate ownership of the project by project beneficiaries

Policy will remain supportive after the project has ended.

Technology is appropriate

Environmental concerns have been addressed.

The implementing agency is able to provide follow-up once the project has ended.

Thatany financial or economic analysis is reliable (e.g. a cost benefit analysis)

Professional judgment must be applied in determining whether or not all appraisal criteria are relevant /applicable to the particular project or progrramme in question.