1. Management & Development of Complex Projects Course Code - 706
MS Project Management
Management & Development of Complex Projects
Course Code - 706
Public Sector Development Projects Management
Lecture # 5

2. Summary of Previous Lecture
In previous Lecture, we have discussed about
Project management & operations management
Project management & organization & organizational strategy
Project life cycle
Project management process groups

3. The Project Management Body of Knowledge Government Extension
While the PMBOK Guide provides a generic foundation for managing projects, this extension addresses the specific practices found in public sector projects.
This extension to the PMBOK describes the generally accepted principles for public projects that are not common to all project types.
The number of Knowledge areas are 9 in this guide however number of processes in each knowldge area varies from the PMBOK standard.

4. Why Government need Projects?
The basic job of the Government is to formulate policies, legislation, provision of safety, security, infrastructure and community services for general public and to boost the overall economic conditions of the state so that prosperity prevails.
Objectives of PSDP are to carry out such obligatory projects, which provide essential services for welfare of public but need huge capital investment, and have long gestation periods with low rate of financial returns

5. Public Sector Development Programme (PSDP)
Main instrument for providing budgetary resources for development projects and programs.
Gives quantitative picture of total annual spending on the ongoing and new development projects being taken up or to be taken up by the Federal Government during a particular year.
All sectors of economy are reflected in the PSDP along with their costs, allocations and expenditures.

6. Importance of PSDP
Helps achieve the
objectives and targets set by the government, to bring about a structural change towards sustainable and higher growth.
Government’s socio-economic objectives envisaged for development of the common people

7. Key Indicators of PSDP Source: PC 2006-07 2008-09 2010-11
Number of Schemes
1796
1770
1779
Average Cost per Scheme (Million Rs)
952
1257
1638
Throwforward as % of Cost of Cost of On-going Schemes
63.6
65.9
62.7
Foreign Loans/Grants as % of Total Cost
17.5
18.1
22.7
New Schemes Cost as % of Total Portfolio
43.1
22.3
29.7
Share in PSDP of New Schemes (%)
30.0
24.7
21.0
Throwforward Allocation for on-going Schemes (%)
4.4
10.8**
Cost of New Schemes/Allocation for New Schemes (%)
7.7
3.9
17.1**
* Excluding Power sector
** as per the revised allocation following cutback
Source: PC

8. Approval Process of Public Sector Projects in Pakistan
In Pakistan project identification, formulation, appraisal, approval, implementation, monitoring and evaluation of development projects is carried out by various line ministries, autonomous bodies and departments at Federal as well as provincial level.
Various forums have been set up by the Government for approval of projects at provincial and Federal levels and financial powers for such approval have been delegated to ECNEC, CDWP, DDWP and PDWP

9. Generic Project Cycle
PC-V
PC-I/PC-II
Monitoring & Evaluation

10. Methodology of Processing Project Development
Key Stakeholders
PIP and PIA Section
Technical Sections
Ministries/Organizations/ Provincial Governments
Ministry of Finance
Economic Affairs Division PC

11. 1. National Economic Council
Composition
Functions
Chaired by the Chief Executive of the Country (President/P.M)
Members:
Federal Ministers (in-charge of Economic Ministries)
Deputy Chairman Planning Commission
Governors/Chief Ministers of Provinces
Secretariat: Cabinet Division
Supreme policy making body in the economic field.
Approves all plans and policies relating to Development.
Overall control of Planning machinery.

12. 2. Economic Coordinate Committee of the Cabinet (ECC)
Composition
Functions
Chaired by the Prime Minister
Members
All Federal Ministers of Economic Ministries.
Secretariat:
Cabinet Division
Attends all urgent day to day economic matters.
Coordinates the Economic Policies of the Government
Keep vigilance on monetary and credit situation.
Regulate credit in order to maximize production and exports and to prevent inflation.
Approve the projects in private sector

13. 3. ECNEC Composition Functions Chaired by the Minister for Finance.
Members
Federal Ministers of Economic Ministries.
Provincial Governors/ Chief Ministers or their nominees, and
Provincial Planning and Finance Ministers.
Sanction development projects in the public and private sector.
Approve moderate changes in the plan and plan allocations.
Supervise the implementation of Economic Policies laid down by the NEC/Government.

14. 4. CDWP Composition Functions
Chaired by Deputy Chairman Planning Commission.
Members:
Secretaries of the Federal Ministries Concerned with Development
Heads of the Planning Departments of the provincial Governments
Secretariat: Planning Division
Approve/scrutinize
projects exceeding a certain financial limit of the Federal Ministries, Provincial Governments, Autonomous Bodies.
Submit/ recommend such projects to the ECNEC for final approval.

15. 5. DDWP Composition Functions
Headed by the respective Secretary of the Division/ Head of the Deportment.
Members:
Representative of the Finance Division
Concerned Technical Section of the P&D Division
Approve Development Projects of Federal Ministries/ Division/Departments according to their financial limits.

16. 6. PDWP Composition Functions
Headed by the Additional Chief Secretary Development/ Chairman P&D Board.
Members:
Secretaries of the Provincial Departments concerned with Development.
Representative of Federal Ministry of Planning & Development
Approve Development Projects according to its financial limits.
Scrutinize projects for inclusion in the provincial ADP and
Recommend projects to CDWP above certain financial limits.

17. Phase-I ---Kick-off
In December of every year Public Investment Programme (PIP) Section of the PC seeks from the Federal Ministries/Organizations/ Provincial Governments the details and priorities of the projects (whether ongoing or new) to be funded from PSDP.
Working paper is prepared by the PIP section in consultation with concerned technical sections for the “Priorities Committee” meeting to be held in the Finance Division, under the chairmanship of Additional Secretary (Budget)

18. Phase-II: Priorities Committee
Issues a schedule of consultative meetings (Feb. to May) with the concerned stakeholders to determine the priorities of the projects.
In consultation with the PIP section of the Planning Commission and Ministries/ Organizations/Provincial Governments a working paper for Annual Plan Coordination Committee (APCC) reflecting prioritized allocations in light of the available size of the development envelope is prepared

19. Phase-III: Annual Plan Coordination Committee
It is headed by the Deputy Chairman Planning Commission.
Projects and their allocations are finalized in consultation with the same Ministries represented at the level of Ministers/Secretaries/Chief Secretaries.

20. Phase-IV: National Economic Council
Headed by the Prime Minister and attended by Senior Federal & Provincial Ministers and Secretaries of the concerned Ministries.
The final set of project allocations is prepared and presented for the approval of National Economic Council (NEC) and published/ printed in shape of a book for circulation to all concerned
NEC meeting is held in the last week of May or first week of June.

21. Core Forums WP APCC WP Priorities Com PIP Concerned Ministries etc
Technical Sections (PC)
Priorities Com
Annual Plan Coordination Com
National Economic Council
WP Priorities Com
WP APCC

22. PC-II- Survey/Feasibility Study
This Form envisages details with regard to survey and pre-feasibility & feasibility study before approving the project.

23. PC-I: Complete Project Detail
This Form or document envisages complete project details such as
Project description
Purpose
Objectives
Cost
Design
Completion time, annual recurring expenditure, management structure, environmental impacts, technical/financial/ economic feasibility/ rate of return, benefits, justifications etc.

24. Categories of PC-I Social Sector Education, Training and Manpower
Health, Nutrition, Family Planning &
Social Welfare
Science & Technology
Water Supply & Sewerage
Culture, Sports, Tourism &
Youth
Mass Media
Governance
Research
Production
Agriculture Production
Agriculture Extension
Industries, Commerce And Minerals
Infrastructure
Transport & Communication
Telecommunication
Information Technology
Energy (Fuel & Power)
Housing, Government Buildings & Town Planning
Irrigation, Drainage & Flood Control

25. Appraisal
The sponsors send 45 copies of the PC-I/II to the PC. The document is first appraised by the PIA Section which is the secretariat for the above forums and if cleared by them it is circulated to all Members of the DDWP/ CDWP/ ECNEC and the concerned technical section of the PC dealing with the subject.
Technical section carries out the technical appraisal while the Economic Appraisal Section conducts the financial/economic viability of the project including Internal Financial Rate of Return (IFRR), Net Present Value (NPV) and sensitivity analysis etc.

26. Forums for Approval of PC-I/II
Approval Forum
Approval Power (Million)
Composition
DDWP
Rs. 60
Headed by Secretary of Concerned Ministry with Reps. of Planning Commission and Finance Divisions as Members
CDWP
Rs. 1000
Headed by DCPC with Secretary P&DD, Members of the Planning Commission, ACS (Dev) of Provinces, Reps of Finance, EAD and concerned ministries as members
ECNEC
Above Rs. 1000
Headed by Prime Minister with representatives from Provinces an concerned ministries as Members
Corporate DWP
ECNEC Powers
Headed by Chairman of the Public Sector corporation with reps of Planning & Finance as Members
Source: PC

27. Central Development Working Party
Technical sections prepares a working paper for CDWP
PIA Section circulates the working paper to all the members of the CDWP who while attending the meeting comment, appraise and support the project.
After detailed deliberations projects may or may not be approved keeping in view the national/public interest.
If it is agreed to approve a project which is beyond Rs million, the CDWP recommends it to the ECNEC for final approval.

28. Executive Committee of the National Economic Council
A summary for ECNEC is prepared by the concerned technical section of the PC and sent to the Cabinet Division who circulate the summaries to all the members of the ECNEC.
ECNEC normally holds its meetings on quarterly basis
Anticipatory Approval:
In case a project has to be started in urgency and the CDWP has already recommended it for approval but the meeting of ECNEC is not scheduled in near future.
The sponsors through Planning Commission move a request of anticipatory approval of Chairman ECNEC stating the justification, importance and urgency of the project

29. Approval
Once the project is approved from the relevant forum, after receipt of minutes and other necessary documents the PIA Section issues administrative approval of the project to the sponsors for taking up the case of financial releases with the Finance Division who make quarterly releases only if an allocation of that project is available in the PSDP.
The sponsors are also required to prepare annual cash/work plan of the project for getting the releases.

30. Monitoring: PC-III
The Projects Wing of the Planning Commission is responsible for undertaking the quarterly monitoring of the projects which have been started by their sponsors and have attained 30% progress.
The PC-III contains a questionnaire seeking information on the progress of the project such as physical and financial targets of the next quarter and achievements of previous quarter.

31. PC-III (A) form for Physical Targets based on PSDP Allocations
Types of PC-III
PC-III (A) form for Physical Targets based on PSDP Allocations
To be furnished by 1st July of each year
Activity Chart or Work Plan/ Cash Plan
PC-III(B) Monthly Progress Reporting
To be furnished by 5th day of each month

32. PC-IV: Project Completion Report
Performa filled by the Sponsoring/Executing Agency at the time of completion of a project and sent to the Planning Commission for approval and onward transmission to the Finance Division for shifting the project from implementation stage/development budget to the operational stage/non-development/recurring budget.

33. PC-V: Annual Performance Report After Completion of Project
Once the project gets into the operational stage after completion its performance is judged in light of the given financial/economic feasibility, benefits and objectives of the project as were set out in the PC-I. This proforma has a questionnaire seeking information on annual performance of the project.
Report to be furnished by 31st July of each years for 5 years after completion of Project indicating Projects operational results during the last financial year.

34. PC Performa: Summary
For the project cycle following six (6) proforma have been designed by the Planning Commission. No
Performa
Purpose 1
PC-I Form
Detailed project document 2
PC-II Form
For preparation of pre-feasibility, feasibility study,
conducting survey 3
PC-III Form
For submission of quarterly monitoring/progress
report of project 4
PC-IV Form
For submission of completion report of project 5
PC-V Form
For submission of evaluation /implementation
report on annual basis for five years (helps in
policy formulation for future) 6
Low cost PC-I Form
For preparation of small projects costing less
than Rs. 1.0 million

35. Summary of This Lecture
In this Lecture, we have discussed about
Public Sector Project Life Cycle
Approving Authorities
PC Performas

36. Well Started is Half Done
End Note
Well Started is Half Done

37. THANK YOU!