This document outlines the key stages of a project cycle: identification, preparation, appraisal, implementation and monitoring, and evaluation. It describes the identification stage as understanding existing problems and needed actions to address them. The preparation stage involves analyzing shortlisted projects based on criteria like effectiveness, costs, and ease of implementation. The appraisal stage assesses projects' market viability, technical feasibility, financial profitability, socio-economic impacts, and environmental effects. Selected projects then move to implementation and monitoring to check progress against plans and objectives. Finally, the evaluation stage assesses whether projects achieved their goals and identifies lessons for future projects.

1. Subject:
Project Formulation and Environmental Impact
Assessment
Dhwani Shah,Assistant Professor
Bhaikaka Centre for Human Settlements,
APIED,VallabhVidyanagar.
PROJECT CYCLE

2. What is a Project?
‘A unique set of co-ordinated activities/jobs, with definite
starting and finishing points, undertaken by an individual or
organization to meet specific objectives within defined schedule,
cost and performance parameters.

3. Types of Project
 Personal Projects
Preparation from your Exam
 Local Projects
Cleanliness drive in your neighborhood
 Organizational Projects
Construction of a highway taken up by an organization
 National Projects
Literacy Campaign
Preparation of Annual budget
 Global Projects
Environmental protection

4. Project Cycle
Identification
Preparation
Appraisal
Implementation
& monitoring
Evaluation

5. Identification Stage
 Understanding of the likely causes and linkages between
existing problems and the needed actions.
 In depth knowledge and experience of local conditions –
Source of suggestions for project formulation

6. Identification Stage
Example:
 Existing Problem: High Pollution level in Delhi
 Needed action: ReduceTransport and Industrial Pollution
To ReduceVehicular Pollution
 Mass RapidTransit System (MRTS) like Metro/BRTS
 Better Infrastructure for Using Non MotorizedTransport (NMT) like good
side walks, cycle tracks, cycle sharing
 Restrict registration of new vehicles
 Ban DieselVehicles on the road
 Enforce strict emission norms, Pollution Under Control Certificate
 Encourage use of Car pool
 Grow more trees/ green belts in the city
 Declaring no traffic zone in the city. Eg- Chandni Chowk
 Ban vehicles with age of 10yrs or more plying on roads
 Traffic curbing measures like odd-even number plates

7. Preparation
 Projects that survive successful identification are prepared
and analyzed before money is allocated to them.
 Criteria for Screening of ideas
 Effectiveness to achieve objective
 Cost of proposal/Resources available
 Ease of Implementation
 Time needed
 Scoring Alternate projects based
on the criteria.
 Projects with maximum points
selected for further Screening/
Appraisal.

8. Appraisal
 MarketAppraisal- Potential market, Location and
accessibility of consumer
 TechnicalAppraisal-TechnicalViability, Operating at
optimum level?
 FinancialAppraisal- Profitability, NPV, IRR, pay back
period, Level of Risk etc
 Socio-EconomicAppraisal- Social Cost benefits, level
of savings in society
 EcologicalAppraisal- Impact of the project on quality
of Air,Water, Noise,Vegetation, Human life. Likely
Damage and the cost of restoration eg. Industries
Project
Feasibility
Report

9. Project Selection
Multi Criteria Evaluation
 After theAppraisal a project is selected for Implementation on the
basis of
 Expected life
 Environmental Impact
 Net PresentValue/Rate of Return
 Flexibility
 Investment required etc.
Points are given to each criteria and as per the weightage
decided for each criteria an overall score is worked out for each
project.

10. Ideas from Identification to Selection

11. Implementation & Monitoring
Implementation
 A project that is considered to be worthwhile at the appraisal stage
qualifies for implementation
 It is considered to have three phases:
• Investment
• Development
• Operation
Monitoring
 It requires an effective information gathering and management system
that can check the progress of the project according to the plans that
have been drawn up and the project objectives.
 Monitoring- 3 key parameters
 Time
 Cost
 Performance

12. Evaluation
 Evaluation is an ex-post assessment of whether the project was
worthwhile. It seeks to answer such questions as:
• Has the project been successful in attaining its objectives?
• If not, in what respect has it failed?
• How might its design and/or implementation have been
improved?
 Evaluation helps to identify elements of strength and weakness,
success or failure.The results are valuable in planning future
projects and in attempts to avoid repeating or committing
‘mistakes’.