1. NEPAL ADMINISTRATIVE STAFF COLLEGE Project Appraisal: Group Works
Advanced Course on Project Management
for Class II Technical Officers of GoN
Instructions for
Project Appraisal: Group Works
7 December 2018

2. Project Appraisal ?
Evaluation of overall assessment of project’s likelihood for success.
Done after the feasibility study of the project has been completed.
Basic aim is to consider and compare the possible feasible projects, and to select the best one.
In most of the cases appraisal criteria are set and communicated.
Appraisal team is formed from different background
©NASC, 2018
7 December 2018

3. Rationale of Appraisal- Why?
Imbalance between need and means
Selection of best project that meets the objectives
Optimal use of available resources
Discard unfeasible projects
Contribute to achieve the goal of development plan and programmes
Getting acceptance of concerned stakeholders
Showing relevancy of project than others
An integral part of overall project cycle management.
©NASC, 2018
7 December 2018

4. Scope of Project Appraisal
I. Project Background and Rationale
Appraisal should focus on:
In which context project has been prepared and proposed for financing.
What is the rationale ? How relevant the proposed project is ?
What is the possibility of addressing the problem and achieve the desired state of affairs
©NASC, 2018
7 December 2018

5. Project’s Goal and Objectives
How compatible the project goal is in accordance with the national priority?
How the project can contribute to achieve development goals of the nation ?
Are the objectives in line with the overall goal of the project? Do they really help to achieve the project’s goal?
Are there any contradictions between the objectives ?
Do they fulfill the criteria of good objectives?(SMART)
©NASC, 2018
7 December 2018

6. Demand and Market Aspects
Demand aspect should focus on :
Does the demand express a real need or only demanded for the benefit of certain group?
What is the demand size ?
What sources of data and techniques are used in analyzing the demand?
What is the plan of project to address the demand, possibility of addressing the demand?
What are the strategies for surplus deficit demand?
©NASC, 2018
7 December 2018

7. Market Aspects Appraisal should focused on:
Market size and sales forecast
Market coverage strategy
Ability to satisfy customers
Competition and strategy to deal with competitors
SWOT analysis of competitors
Distribution and promotional strategies
Marketing plan
©NASC, 2018
7 December 2018

8. Technical Aspects Critical aspects to be reviewed are:
Investment cost and operational cost
Environmental aspect of technology( Possible environmental harms)
Size and scale of operation
Appropriateness of technology(proven or tested)
Equipment capacity and suitability as per requirement
Fitness with existing organizational environment
Operatability of technology
©NASC, 2018
7 December 2018

9. Institutional and Management Aspects
Organizational history
Governance system
Organizational experience
Management capabilities and limitations
Past experience in the field of proposed project
Institutional linkages
Physical and financial strength
©NASC, 2018
7 December 2018

10. Financial Aspects Initial investment and sources of financing
Participation in initial investment (Organization’s/beneficiaries’ contribution)
Projected cash flow and sustainability
Liquidity plan
Sensitivity analysis to test the effect of changes in major variables(cost, price etc.)
©NASC, 2018
7 December 2018

11. Economic Aspects
Only financial analysis does not provide adequate basis for judging the value of project to the economy.
Examination is done from the view point of project’s contribution to the economy
Justification of investment is examined.
Major concern areas are:
Increased output and services, increase in employment, improve in living standard of society, income distribution etc.)
©NASC, 2018
7 December 2018

12. Environmental Aspects
Environmental appraisal mainly focuses on:
Compliance of legal provisions(environmental acts and regulations)
Possible environmental impact of project(positive and negative impacts)
Provisions of mitigation measures and environmental management plan
©NASC, 2018
7 December 2018

13. Social Aspects Targeted beneficiaries
Process adoption for Identification of direct and indirect beneficiaries
Ways of securing cooperation from beneficiaries.
Inclusiveness from gender, caste, ethnicity and other perspectives.
Ways of bring positive impact in the society
Provisions for minimizing negative impact to the society.
Degree of social acceptance
Ways for increasing social acceptance.
©NASC, 2018
7 December 2018

14. Risk Aspects Appraisal should focus on:
Identification and analysis of possible risk
Alternative strategies for risk mitigation
Monitoring and control plan.
©NASC, 2018
7 December 2018

15. Project Appraisal: Group Work
Group work on project appraisal (3 sessions)
Presentation in plenary (1 session)
©NASC, 2018
7 December 2018

16. Thank You !
©NASC, 2018
7 December 2018