GENERAL ODA PROJECT PROPOSAL FORMAT

Cover Page: Project Title

Proponent(s) / Implementing Agency / Cooperating Agencies

I. EXECUTIVE SUMMARY

a. Background/Rationale
a. Goals and Objectives
b. Project Components
c. Project Sites / Location
d. Implementation Arrangement and Schedule
e. Target Groups / Beneficiaries
f. Project Cost and Financing Summary

II. BACKGROUND / RATIONALE

III. GOALS AND OBJECTIVES

IV. SOCIO-ECONOMIC PROFILE OF THE AREA

V. PROJECT DESCRIPTION/ COMPONENTS

VI. TECHNICAL COMPONENT

VII. MARKET COMPONENT

VIII. FINANCING STRATEGY

IX. MANAGEMENT COMPONENT

a. Implementation Strategy
b. Implementation Schedule
c. Organizational Structure
d. Funds Flow System
e. Monitoring and Evaluation System

X. BENEFITS, JUSTIFICATION AND RISKS

a. Financial and Economic Analysis

b. Environmental Assessment
c. Social Assessment
d. Project Sustainability
e. Risks
XI. COMPLETED ICC FORMS
XII. OTHER REQUIREMENTS
a. RDC Endorsement
b. EIA / ECC
c. Others as may be required
 GENERAL ODA PROJECT PROPOSAL FORMAT

I. EXECUTIVE SUMMARY

The proposal begins with a brief overview/summary of the project. It includes the
following:

a. Background/Rationale
- contains the general current situational analysis of the sector; related
developmental policies; and relevance of the project with reference to the
thrust of DA or growth of the sector being addressed by the project.
b. Goals and Objectives
- Goals represent the long-term development objective of the project and
relates to the ultimate reason for the project.
- Objectives represent the immediate-term development objective(s) of the
project, clearly specifying the expected outputs.
c. Project Sites / Location
- identifies area of coverage of the project
d. Project Components
- presents a conceptual framework of the project strategy. Corollary to it
are the various components of the project supportive to the attainment of
the goals and objectives. Included also in the discussion are the general
arrangements, technical requirements, resources needed, and expected
outputs for each component of the project.
e. Target Groups / Beneficiaries
- identifies the target group/beneficiaries, classified into primary (direct)
and secondary (indirect) beneficiaries.
f. Project Costs and Financing Summary
- presents estimated project cost including cost sharing arrangement
between GOP and funding donor.
g. Implementation Arrangement and Schedule
- describes the linkage/collaboration mechanism among agencies and other
participating entities (Pos, NGOs, etc.) during project implementation.
- specifies the duration of the project
h. Expected Benefits
- general presentation of quantifiable and non-quantifiable benefits that the
project intends to deliver.

II. BACKGROUND / RATIONALE

This section provides the current situation of the sector/sub-sector that the project intends to
support and its contribution to the national economy. Relevant programs/projects and
initiatives of DA are also enumerated along with the various stakeholders that have direct or
indirect influence in the area/sector. Perceived problems plaguing the sector including the
development gaps which the project intends to address are also discussed.

Sequential events leading to the conceptualization of the project are also incorporated on
this part of the proposal. Discussion may further include the project conceptual framework,
purpose, and strategy to be utilized to address the needs of the sector.
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III. SOCIO-ECONOMIC PROFILE OF THE AREA

This section is essential for projects employing rural/integrated area development approach
as it provides a detailed description of the target area, its potentials and limitations. Profile
may include the demographic characteristics, physical resources, income distribution,
expenditure pattern, and farming practices within the area. For better understanding of the
needs of the area, Problem Tree Analysis and Objective Tree Analysis may be presented.

Other pertinent data, analyses (e.g. Supply and Demand / Market analysis, crop suitability,
trend analysis, etc.), and maps consistent with the identified development gaps are also
incorporated in this section.

IV. TECHNICAL COMPONENT

The objectives of the project should be transformed into major components indicating
among others (a) the various activities within the component and its specific location; (b)
implementation procedures (e.g. beneficiary screening, skills to be developed, enterprise to
be established, type and number of training to be conducted, etc.); (c) time frame of
activities; (d) specific breakdown of resource requirement per activity; and (e) specific
outputs of activities per project component. Proponent could also break down components
into sub-components, if necessary, depending on the project design.

In view of ICC policy guidelines on incorporating Results Monitoring and Evaluation, a

Logical Framework (logframe) or Project Design Matrix (PDM) should be integrated in
this section of the proposal. Project targets and corresponding indicators should be
established and developed in order to objectively measure the impact of the project. A
sample logframe format is presented in Annex 1.

V. FINANCING STRATEGY

A detailed financing plan is an integral part of this section. It may be presented according
to sources of financing, local currency and foreign exchange component, and annual cash
flows, among others. (Sample tables are shown in Tables 1, 2 and 3). Cost items that may
be included in the analysis are presented in Annex 2. Note that project cost estimates
should be made consistent with the implementation strategy and schedule.

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VI. MANAGEMENT COMPONENT

This part provides a detailed discussion of the management of the project. It shall include
the following:

a. Implementation Strategy

The proposal identifies the implementing agency and coordinating units,

specifying their roles and responsibilities during project implementation (e.g.
provision of budget, personnel, MOOE, land, office space, technical assistance,
training, etc.). This is critical as it sets accountabilities, provides clear direction
for the cooperating units at the onset of project implementation, and promotes
project sustainability.

b. Implementation Schedule

This part discusses the chronological phasing of project activities, setting of

milestones, and other time frame parameters. Duration and scope of activities
should be made consistent with the financing plan.

c. Organizational Structure

Depending on the project design, the project may be implemented by a Project

Management Office (PMO), Project Coordinating Office (PCO), or other
appropriate implementing unit. In any case, the composition and structure of the
organization (including the Steering Committee, Technical Working Group, etc.)
has to be presented. Staffing strategy and requirements (i.e. no. of personnel
hired, seconded, or detailed; source; and expertise) should also be indicated as it
would help determine the cost/salaries for the personnel complement. In case
consultants will be hired, the consultant’s Terms of Reference (TOR) should
include the field of expertise, scope of work and number of man-months
required.

d. Funds Flow System

Funds flow mechanism consistent with the established government system has to
be provided in detail. The procedures/system to be used for the release of funds
should be clearly specified including the delineation of responsibilities and
accountabilities of the implementing and partner agencies.

e. Monitoring and Evaluation System

This part describes the mechanism for progress monitoring and reporting of the
physical and financial accomplishments of the project. Integral to this is the
design of Project Benefit Monitoring and Evaluation (PBME) for the conduct of
impact assessment which would determine if the project is accomplishing the
desired effects as per the logical framework. Development indicators should
therefore be clearly defined. Relatedly, the procedure for benchmarking should
also be described.
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VII. BENEFITS, JUSTIFICATION AND RISKS

This section discusses topics such as:

a. Financial and Economic Analyses

These analyses are required if the total project cost is P300 M or above.
Broadly, the viability of the project is measured by comparing the identified and
quantified benefits (both positive and negative) and pertinent costs with and
without the project. Unquantified benefits are also mentioned. Assumptions
used in the computation of project cost and benefits (including data and
parameters used) should be clearly presented in the proposal for the purpose of
validation. The project is said to be profitable if resulting IRR is greater than the
hurdle rate currently set at 15%.

For projects that aim to increase farmer’s income, a Farm-Income Analysis has
to be included whereby the specific effects that the project is expected to
generate on the net income of the farmers are identified and quantified. Hence,
the analysis must show the farmer’s future net income with and without the
project.

Other economic/financial indicators to determine the project viability (e.g.

payback period, sensitivity analysis, etc.) should also be presented.

b. Environmental Assessment

This part describes the biophysical environment and possible impact of the
project on it. Mitigating measures to reduce the negative effects have to be
identified and included in the economic analysis.

c. Social Assessment

Social impact assessment is usually conducted during project formulation to

determine the social acceptability of the proposed interventions. During the
process, comprehensive consultations with the beneficiaries are undertaken.
Direct and indirect social benefits are therefore identified.

Gender concerns are also incorporated on this part of the proposal. The number
of women/men who will benefit from the project; extent of involvement of
women in the proposed activities; and responsiveness of the proposed
technologies/trainings to the needs and present capacities of women to fully
participate in the proposed project are therefore included.

d. Risks
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This section identifies associated risks that may cause delays in the
implementation of the project. These may include uncertainties arising from
limited financial, technical, and managerial capacity of implementors; and
changes in political leadership and priorities. Likewise, appropriate and
corresponding adjustments are incorporated in the project design to minimize
negative effects during project implementation.
6
Table 1. Financing Plan by Fund Source
Component Donor GOP Total
NGA LGU Others
Civil Works
Equipment
Training
Consulting Services
Administration
Other specific
component
Contingency Cost
GRAND TOTAL

Table 2. Annual Financing Plan by Component/Activity

Activity Details 2004 2005 2006 2007 Total Cost
Component 1
Activity 1A
Activity 1B
Sub-total
Component 2
Activity 2A
Activity 2B
Sub-total
Component 3
GRAND TOTAL
Note: Planning team should determine from this table appropriate expense accounts (PS, MOOE
or CO) which should be reflected in Table 3.

Table 3. Financing plan by Object of Expenditure

Activity Total MAINTENANCE AND OTHER OPERATING EXPENSES Total CO TOTAL
Details PS 02 03 05 06 07 17 18 22 23 29 MOOE
Component 1
Activity 1A
Activity 1B
Sub-total
Component 2
Activity 2A
Activity 2B
Sub-total
Component 3
GRAND
TOTAL

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 Annex 1
LOGICAL FRAMEWORK

Narrative Summary Objectively Verifiable Indicator Means of Verification (MOVs) Risks / Assumptions
(OVIs)

Goal

Purpose

Outputs

Activities Inputs

Precondition

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 Annex 2

LIST OF COST ITEMS TO BE ANALYZED

Investment Expenditure Technical Operating Procedures

A. Preliminary Expenditure A. Purchases

 Initial investigations  Materials
 Research and technical studies  Fuels
 Economic studies  Maintenance materials
 Marketing studies  Workshop supplies
 Profitability studies  Office supplies
 Designstudies  Packaging materials
 Financial studies
 Legal advice B. Personnel Expenses
 Supply  Wages and salaries
 Allowances
B. The Site and Its Preparation  Allowances and benefits in kind
 Cost of land  Commissions
 Notary’s fees  Director’s fee
 Registration duties and fees  Social Security commitments
 Drainage
 Right of Way C. Taxes and Duties
 Access roads, etc.  Direct duties and taxes
 Licensing tax
C. Construction  Land taxes
 Foundations  Municipal and regional taxes and
 Buildings duties, etc.
 Wells  Indirect duties and taxes
 Water pipes and connection to  Value added tax
electricity mains, telephone system  Tax on services rendered
 Reservoirs and tanks  Local tax
 Wastewater disposal  Turnover tax, etc.
 Fencing  Registration taxes, duties and fees
 Roads and paths  Registration fees for deeds and
 Housing for employees contracts
 Stamp duties, etc.
D. Equipment and Materials (with  Custom duties
specifications)  Trade taxes
 Machines  Duties levied by international bodies
 Foundations for machines
 Machine installation costs D. Works, Supplies and External Services
 Testing and start-up  Rents
 Prime movers  Maintenance and repairs
 Electricity and telephone  Works by outside firms on contract
 Electrical equipment basis
 Internal transport equipment  Water, gas and electricity supplies
 Vehicles  Fees for patents, licenses, barnd
 Office equipment and supplies marks, etc.
 Furniture for employees’ houses  Studies, research and documentation
 Maintenance and clearing equipment  Payment to agents
 Fees
E. Replacement Parts  Insurance premiums
 The cost of basic stock of spares may
be estimated at approximately 20% of E. Transport and Traveling
the total cost of the equipment and  Personnel transport
materials listed under item D.  Travel and removal expense

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  Freight and transport for purchases
F. Consulting Services  Freight and transport for sales

G. Incorporate Fixed Assets F. Miscellaneous Management Expenses

 Advertising
 Patents  Office supplies
 Licenses  Telephone-Telex-Mail
 Goodwill  Legal documents and litigation
 Reproduction rights  Grants and contributions
 Cost of consultations and meetings
H. Cost of Establishment
 Cost of forming the company
 Cost of issuing shares
 Interim interest
 Setting up a sales network
 Advertising
 Recruitment personnel
 Personnel training (wages and
salaries, training, traveling expenses)

I. Provision for Contingent Expenditures

 Physical contingency
 Price escalation

J. Working Capital

 Stocks of raw materials and requisites

 Stocks of intermediate products
 Stocks of finished products
 Average period for payment allowed
to customers

Source: Project Development Manual, NEDA, September 1984

Note: The source of financing (e.g. loan proceeds or GOP counterpart) of the above cost
items should be clearly identified.

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 PROJECT EVALUATION REPORT FORMAT

A. Project Title
B. Proponent
C. Implementing Agency
D. Coordinating Unit(s)

E. Project Description

 Objectives
 Strategies and Major Components
 Project Coverage
 Location
 Duration
 Target Beneficiaries
 Funding source(s) and requirements

F. Findings

G. Issues

H. Recommendation(s)
 PROJECT EVALUATION REPORT GUIDELINES

Following the PCM Method, proposed projects will be evaluated based on its efficiency,
effectiveness, impact, relevance and sustainability.

I. Relevance

Projects are said to be relevant if their objectives are consistent with the development policy
and needs of the target beneficiaries.

a. Consistency with DA Mandate and Policies

The project should be:

i. consistent with provisions under RA 8435 (AFMA) and RA 8550 (Fisheries
Code) and other relevant laws;
i. consistent with objectives, priorities and thrust of DA banner programs (i.e.
Ginintuang Masaganang Ani Programs – GMA Rice Program, GMA Corn
Program, GMA Livestock Program, GMA High Value Commercial Crops
Program and GMA Fisheries);
ii. within the Strategic Agricultural and Fisheries Development Zones (SAFDZs)
or supportive of SAFDZ activities;
iii. supportive of DA, DAR and DENR convergence strategy on rural
development; and
iv. responsive to other national concerns pertaining to women in development,
poverty alleviation, sustainable development, income redistribution,
accessibility of goods and services, peace efforts, etc. Net contribution of the
project should be desirable not only to the economic but also to the social
aspect of the country as a whole.

b. Responsiveness to Local/Sub-sectoral Needs

The project should have an impact on the regional and local targets and objectives. It
should exhibit:
i. consistency with the priorities and thrust of the region and specific locality
(project should be part of the local development plans);
ii. relevance vis-à-vis the identified development/technology/investment gaps in
the sub-sector in the region;
iii. complementation with on-going programs or projects (regular or foreign
assisted); and
iv. over-all contribution to the development of the region.

Following these parameters, basis should be provided to show that the proposed
interventions are really the ones needed in the target area/sector. Proposal should be
backed up with a needs assessment study per target site/sub-sector in order to fully
determine the needed and appropriate interventions in the project area. Relatedly, the
proposal should be able to demonstrate receptiveness of beneficiaries towards the
project. Hence, identification of interventions should allow involvement of local
communities, institutions, private sector and other stakeholders.

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II. Efficiency

This refers to the efficiency of the project to deliver the outputs through provision of
required resources considering the appropriateness, timing, cost, and benefits of inputs.

a. Project Cost and Financing

Detailed breakdown of the project cost should be validated. Cost items presented in
the proposal must be evaluated as to its consistency with the project strategy, scope and
duration of activities.

b. Implementation Schedule

The duration and sequencing of activities should be evaluated if realistic. In case the
project will be implemented in phases, scope of activities should be evaluated vis-à-vis
the designed schedule as well as frequency of bilateral negotiation. Probable causes of
delays should also be identified as these will entail additional cost. Mitigating
measures should be included to minimize time and cost over runs.

c. Project Implementation and Management/Institutional Arrangements

The proposal should be able to present a sound implementation arrangement to avoid

delays and cost overruns as a result of poor management during project
implementation. The proposal should be able to identify the implementing agency and
coordinating units, clearly stipulating their specific roles and responsibilities consistent
with their respective mandates.

The implementing agency should further ensure that it has a high absorptive capacity
and has sufficient resources to manage the project within the specified timeframe.
Local budgetary counterpart requirements of the project should be reflected within the
budget ceiling of the agency or accredited to specific DA Program. In terms of
administrative support, the proponent should be able to ensure deployment of sufficient
manpower to implement the project.

Organigram of the project, specifically the Project Management Office (PMO), should
consider the policy guidelines contained in the National Budget Circular 485:
“Rationalization of Project Management Offices.” The said circular mandates the
creation of a unified PMO which will oversee, operate and ensure efficient and
effective implementation of all development projects in the agency; thus, ensuring
accountability, internalization, technology transfer and effective project performance
monitoring.

In view of current fiscal constraints, there is a need to ensure tight linkages and
coordination with other agencies to harmonize development initiatives. Project
activities may be tied-up or complemented by other agri-fishery and rural development
efforts of DA and other stakeholders and participating agencies to maximize the use of
scarce resources and avoid duplication of efforts, thereby improving efficiency of
implementation. Likewise, the project should promote horizontal/vertical linkages
with public/private sector institutions to generate maximum participation. A

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 mechanism for linkaging and coordination should therefore be incorporated in the
proposal.
If the project will be implemented by the LGUs and will have them as the
beneficiaries, the counterparting arrangements or cost-sharing schemes with the latter
should be presented in the proposal. Said cost-sharing schemes should be made
consistent with the general principles espoused in the ICC Guidelines for NG-LGU
cost sharing. Firm commitment from LGUs to provide necessary resources should
therefore be secured.

III. Effectiveness

Project effectiveness is measured by assessing the extent at which Project Output

contributes to the achievement of Project Purpose. It answers questions such as: “Is the
project achieving satisfactory progress towards its stated objectives?”

a. Impact Monitoring

The logical framework should be able to measure impact of the project and not merely
physical and financial accomplishments. Indicators should be SMART (Specific-
Measurable-Attainable-Realistic-Time Bound). Establishment/collection of baseline
data for the project should also commence prior to project implementation. Moreover,
a time frame should be set for each project component, indicating the start and
expected completion date for each activity. This will be the basis for tracking project
progress.

IV. Impact

Projects are evaluated based on its impact, both positive and negative, inside and outside of
the project. Social, economic, technical, environmental and other effects on individuals,
communities, and institutions are also assessed.

a. Technical Soundness

The project should demonstrate technical soundness, profitable operations and

continuous market/demand for the project in the long run to assure sustainability of the
project.

Technology to be promoted should be economically, socially and environmentally

sound. It should be need-based and appropriate for the local resources and capabilities
of the beneficiaries for them to acquire and utilize the services effectively should also
be assessed. Factors to consider in the promotion and adoption of technology include
(i) motivation to change, (ii) educational level and skills, (iii) social and political
environment, and (iv) institutional capabilities.

In case the project will entail procurement of machines and equipments, availability of
spare parts and after sales service in the locality must be ensured. Comparative
analysis of performance efficiency, initial cost and O&M cost of equipments may also
be required.

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 b. Financial and Economic Evaluation

Quantification of stream of cost and benefits, including assumptions used, should be

revalidated. A project is deemed economically viable if:
i. EIRR passes the ICC prescribed hurdle rate of 15%;
ii. NPV is positive;
iii. FIRR is greater than WACC;
iv. payback period is reasonably short to allow proponents a faster recovery of
their investment; and
v. is not sensitive to variations in cost and benefits.

c. Environmental Evaluation

The proposed project should not pose hazard to the environment and should adopt
measures to ensure the protection and proper management of agricultural biodiversity.
Appropriate measures to mitigate the negative effects should be incorporated in the
component activities. Relatedly, the proponent may be required to secure ECC for the
project in compliance with the ICC guidelines in the evaluation of the project.

V. Sustainability

Projects are evaluated on whether its benefits will be sustained after the donor’s assistance
is terminated.

a. Project Turnover/Sustainability Plan

The proposal should include a mechanism to ensure sustainability of the project. In

this regard, a sustainability plan should be incorporated in the proposal detailing some
policy support, appropriate technologies, environmental protection measures, socio-
cultural aspect, institutional and management capacity to ensure project continuation
after the assistance has been completed. Specifically, the proponent should
demonstrate financial and technical capacity to sustain operation and maintenance of
project facilities long after the project is finished. Smooth transition from project to
post project operation must also be ensured.

Participation and empowerment of the beneficiaries, especially the local community, in

the whole project cycle should also be ascertained to ensure ownership and
sustainability of the project.

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 DRAFT

PROJECT EVALUATION GUIDELINES

I. Project Title
J. Proponent
K. Coordinating Unit(s)

L. Project Description

 Objectives
 Strategies and Major Components
 Project Coverage
 Location
 Duration
 Target Beneficiaries
 Funding source(s) and requirements
 Logical Framework

M. Findings

1. Consistency with DA mandate / Provisions under TA 8435 (AFMA) and RA 8550

(Fisheries Code) and other relevant laws.

2. Consistency with objectives, priorities and thrust of DA banner programs (i.e.

Ginintuang Masaganang Ani Programs – GMA Rice Program, GMA Corn
Program, GMA Livestock Program, GMA High Value Commercial Crops Program
and GMA Fisheries).

Project should be within the Strategic Agricultural and Fisheries Development

Zones (SAFDZs) or supportive of SAFDZ activities.

3. Impact of the project on the regional and local targets and objectives

 Consistency with the priorities and thrust of the region and specific locality
(project should be part of the local development plans)
 Relevance vis-à-vis the identified development/technology gaps in the sub-
sector in the region
 Complementation with on-going programs or projects (regular or foreign
assisted)
 Over-all contribution of the project to the development of the region

4. Institutional arrangement(s) needed to carry out and sustain the activities of the
project until after the project life
  Within the mandate of the proponent
 Linkage with other DA and government agencies
 Involvement of local communities, institutions, private sector and other
stakeholders
 Provisions to ensure project continuation after the assistance has been
completed
 Other special concerns (gender and development, environmental concerns, etc.)

d. For projects costing P300 M and above, proposal should show financial and
economic viability. Benefits and pertinent costs should be properly identified,
valued, and analyzed. Assumptions should be clearly presented. The project
should have internal rate of return (IRR) of at least 15%. Payback should be
reasonably short to allow proponents a faster recovery of their investment.

e. Project Sustainability – The project should demonstrate technical soundness,

profitable operations and continuous market/demand for the project in the long
run to assure sustainability of the project. Proponent should give assurance to
provide financial and administrative support long after the project is finished.

f. Proponent’s capacity to provide counterpart – The proponent should be able to

prove its financial capability to provide needed capital (at least the local
counterpart) to provide security to the funding agency. Counterpart requirement
should be reflected in the agency’s budget ceiling or specific DA Program.

g. Enhancement of agricultural biodiversity conservation and management – The

proposed project should not pose hazard to the environment and should adopt
measures to ensure the protection and proper management of agricultural
biodiversity.

h. The project should adopt participatory approach from project conceptualization to

implementation. It should complement existing agri-fishery and rural
development efforts of DA and other stakeholders and participating agencies.
Likewise, it should not only involve partnership but should promote horizontal
and vertical linkages with public/private sector institutions.

i. Supportive of DA, DAR and DENR convergence strategy on rural development.

j. Socio-economic considerations to include:

 Employment generation
 Enhance global competitiveness
 Responsiveness of the project to other national concerns pertaining to women in
development, poverty alleviation, sustainable development, income
redistribution, accessibility of goods and services, peace efforts, etc. Net
contribution of the project should be desirable not only to the economic but also
to the social aspect of the country as a whole.

N. Issues
List of issues that need to be addressed based on the above findings.

O. Recommendation(s)