Project Management

Project Management Practices and Challanges Narhari Ghimire National Planning Commission nghimire@npc.gov.np

Outline

1. Project and Project Management • What is a project: • Defined start and end, specific scope, cost and duration • A temporary endeavor undertaken to create a unique product, service or result • A series of activities aimed at bringing about clearly specified objectives within a defined time period and with a defined budget • Why Project: • The benefits have been proven - it saves time and money - and generates a more successful outcome …. if guidelines are followed • It Expedites the work, Effectiveness and Efficiency increased • Optimal Utilization of Resource (Planned Action)

1. Project and Project Management • What is Project Management: • Process or practice of initiating, planning, executing, controlling, and closing thework • Involves a team to achieve specific goals in specified time • This information is usually described in project documentation, created at the beginning of the development process. • The primary constraints are scope, time, quality and budget. • The secondary is to optimize the allocation of necessary inputs and apply them to meet pre-defined objectives

2. Project Life Cycle Management Generic Model The World Bank Model The ADB Model

2. Project Life Cycle Management General Model The World Bank Model The ADB Model

2. Project Life Cycle Management Generic Model 1. Identification of the Project - Analysis of Development Strategy - Financial Analysis (CBA, IRR...) - Economic Analysis (GDP, Employment, Trade, ...) - Technological Analysis (Technology, Service, HR..) - Environmental Analysis (EIA, IEE, ...) - Other Analyses (Ecosystem, Politics, SWOT, ...)

2. Project Life Cycle Management • 2. Project Design • Detailed Project Report • Design and Engineering Report • Survey Design • Engineering Drawing and designs • Negotiation and Signing Generic Model

2. Project Life Cycle Management Generic Model • 3. Project Implementation • Office Establishment, • Construction and Supervision • Progress Reporting, Quality Assurance • Completion

2. Project Life Cycle Management • 4. Project Monitoring and Evaluation • Output, Outcome and Impact Evaluation • Internal and Third Party Evaluation • Log Frame, Result Framework, Generic Model

3. Project Financing Modalities 1. Equity, Share, Stock, Bond- Public, Private, PPP, Mixed, 2. Debt – Internal, External, Bilateral, Multidonor (WB, ADB, IMF, AIIB… Short, Medium and Long Term Zero Collateral, SME Loans, Project Collateral Loans… Construction and Operation Models Build-Own-Operate-Transfer, Build-Operate-Transfer, Build-Own-Operate, Franchise, Built-Lease-Transfer or Rental, Outsourcing…

4. Project Monitoring and Evaluation Tools • - SMART Indicators • Objectivity, Efficiency, Effectiveness, Impact and –Sustainability • UNDP Evaluation Norms • Transparency and consultation, Evaluation ethics, Follow-up , Contribution to knowledge building Intentionality (intent to use evaluation findings),Impartiality, Independence, Evaluability, Quality Competence

4. Project Monitoring and Evaluation Tools • Performance indicators • The logical framework approach • Theory-based evaluation • Formal surveys • Rapid appraisal methods • Participatory methods • Public expenditure tracking surveys • Impact evaluation • Cost-benefit and cost-effectiveness analysis

4. Project Monitoring and Evaluation Tools A Simple Result Chain

4. Project Monitoring and Evaluation Tools Results are Important GOALS

5. Quality at Entry (10 Elements: WB) CONSISTENCY WITH DEVELOPMENT GOALS AND STRATEGY CLARITY OF PROJECT OBJECTIVES AND KEY PERFORMANCE INDICATORS ALTERNATIVE PROJECT DESIGN CONSIDERATION OF FISCAL IMPACT AND COST RECOVERY SOUND COST-BENEFIT ANALYSIS (OR OTHER SELECTION CRITERIA) RATE OF RETURN SENSITIVITY AND RISK ANALYSIS INSTITUTIONAL ASSESSMENT AND CAPACITY BUILDING CONSIDERATION OF POVERTY REDUCTION AND OTHER, SOCIAL IMPACT ENVIRONMENTAL IMPACT AND RISK ANALYSIS DETAILED IMPLEMENTATION PLAN

6. Why Projects Fail • not linked to broader programme or policy framework • set rigid targets and processes (inflexible) • set optimistic goals to attract finance - false expectations • can encourage authoritarian style of interaction • end abruptly and usually too short term • ‘driven’ by aid professionals and not locally owned • induce insecure state of ‘project culture’ • force relationships to be contractual • do not encourage experiential learning - through trial and error

6. Why Projects Fail • Donor driven projects. • Hasty Implementation, No Preparedness • Selection of unsustainable projects • Inadequate budget allocation • Lack of result based budging or performance based budgeting system • Lack of project bank • No quality at entry mechanism • Frequent transfers of key project personnel especially project managers

6. Why Projects Fail • Poor coordination • Implementation delays • Time and Cost Overruns • Lack of good governance system: less transparency and accountability • Poor monitoring mechanism

7. Project Management in Nepal: Overview and Challenges

7. Project Management in Nepal: Overview and Challenges CASE of Sikta Irrigation Project

7. Project Management in Nepal: Overview and Challenges Sikta Timeline • 2037_First Feasibility Study (Germany) • 2038-40: DIHM , 3km Canal Construction, No further Progress • 2059- Feasibility Study- EU • Request with OPEC, Saudi , Kuwait and other Funds, No progress • 2061/62- Implementation Started • 2063/64- Construction began • 2075/76- 80% Progress • 2073-74- Panel Collapsed- continued • DLP end

7. Project Management in Nepal: Overview and Challenges CASE of Sikta Irrigation Project

7. Project Management in Nepal: Overview and Challenges CASE of Sikta Irrigation Project Main Problems Contract Management Flood Problem Dispersive Soil

Thank You!

Project Management