DEFINITION OF PROJECTS

The term "projects" is best understood in its everyday context. They entail a one-time investment that results in the formation of capital assets, which may produce financial, economic, or both types of returns. Projects can be accepted as stand-alone projects or as individual projects within an approved scheme envelope. They may be carried out using budgetary, extra-budgetary, or a combination of the two resources.

Proposal Formulation

The biggest impediment to successful implementation at the implementation stage, including time and cost overruns and a string of revised cost estimates, is the quality of the scheme or project formulation. Additional time and effort put forth at the scheme/project formulation stage can not only conserve valuable resources but also increase the overall impact, resulting in outcomes that are of higher quality.

• For Schemes: A Concept Paper should be written while requesting in-principle approval, having stakeholder meetings, conducting pilot research, etc. A comprehensive rationalization must be carried out through merging and the elimination of unnecessary programmes before making recommendations for the continuation of ongoing schemes. In order to offer a Detailed Paper for evaluation at the EFC stage, the scheme design should be improved using the feedback from the formulation step.
• For Projects: A feasibility report, which establishes the project is technologically and economically sound and that resources are available to finance the project, should be the first step in project preparation. It offers a solid foundation for beginning land acquisition and approving pre-investment activities, among other things. The Financial Adviser in question will decide whether to approve a project in principle after assessing its viability and the availability of funding.

A generic structure of a Detailed Paper for Schemes/Detailed Project Report for Projects can be referred here

The three main principles to keep in mind when creating new schemes and sub-schemes are economies of scale, separability of outcomes, and sharing of implementation machinery. Programs/Schemes that share outcomes and implementation tools ought not to be presented as separate plans but rather as part of a unified umbrella programme with thoroughly thought-out convergence frameworks.

Appraisal

Schemes will be evaluated by the Expenditure Finance Committee (EFC) or the Standing Finance Committee (SFC), depending on the level of delegation, whilst Projects will be evaluated in a similar manner by the Public Investment Board (PIB) or the Delegated Investment Board (DIB). For Schemes, a Concept/Detailed Paper outlining the overall architecture of the Scheme and its primary structural components should be attached. A feasibility study or a detailed project report should be attached for projects, respectively. In this context, the word "scheme" is used broadly. Programs (umbrella schemes), schemes, and sub-schemes are included in it. Depending on the situation, these elements may be valued as independent cost centers.

To read more on the functions of EFC/SFC and PIB/DIB, more about the procedure for evaluation