Chapter Two: Project Cycle

Introduction
• The project cycle refers to the step-by-step process through
which projects are planned, implemented, and evaluated.
• It provides a structured approach to ensure a project is
completed efficiently and meets its objectives.
• What is a Project Cycle?
• A project cycle is the complete series of phases that a project
goes through, from its conception to completion and evaluation.
• It serves as a management tool to help project managers
navigate the various stages of project planning, execution, and
closure.
• The project cycle is dynamic, with continuous adjustments as
new projects emerge from older ones.
• Though project planning is a continuous process, breaking it into
stages helps to understand and manage it better.
 Key Phases of a Project Cycle
• The project cycle generally includes six main phases:
• Identification: Determining the need or problem that the
project will address.
• Preparation: Outlining the project’s objectives, scope, and
approach.
• Appraisal: Assessing the project’s feasibility, risks, and
benefits.
• Implementation: Executing the project plan and delivering
outputs.
• Monitoring and Evaluation: Tracking progress and
measuring the project's impact.
• Completion and Closure: Wrapping up activities, delivering
the final product, and conducting a post-project review.
 Phases of the Project Cycle Explained
1. Identification:
 Identify and prioritize problems or needs.
 Initial project concept is developed.
 Consultation with stakeholders.
2. Preparation:
 Define the project scope, goals, and deliverables.
 Develop a project proposal with clear objectives, timelines, and
resources.
 Involves technical and financial planning.
3. Appraisal:
 Evaluate the feasibility of the project.
 Conduct risk assessments and cost-benefit analysis.
 Determine if the project is viable and sustainable.
Phases of the Project Cycle Explained (Continued)
4. Implementation:
 Actual execution of the project activities.
 Allocate resources, assign responsibilities, and monitor day-to-
day operations.
 Ensure quality control and adjust plans if necessary.
5. Monitoring and Evaluation:
 Track project progress against set objectives.
 Evaluate project outcomes and impacts.
 Gather feedback for improvement and learning.
6. Completion and Closure:
 Officially end the project activities.
 Final handover of project deliverables to the client or
stakeholders.
 Conduct a post-project evaluation for lessons learned.
 Benefits of Following the Project Cycle
• 1. Improves Project Success Rates:
• A well-structured project cycle increases the likelihood of
achieving project goals on time and within budget.
• 2. Enhances Accountability:
• Clear roles, responsibilities, and timelines are established in
each phase.
• 3. Promotes Learning and Continuous Improvement:
• Evaluation at the end of the cycle allows organizations to
learn from successes and challenges for future projects.
• 4. Ensures Sustainability:
• By considering environmental, social, and economic factors
during the project cycle, projects are more likely to have
long-lasting benefits.
 Models of Project Cycle
• Widely accepted project cycle models include:
• World Bank Project Cycle
• UNIDO Project Cycle
• DEPSA Project Cycle
• BAUM’s Project Cycle
• Sadhan Choudhury’s Project Life Cycle
Each model defines distinct stages that help to
analyze and manage projects.
 World Bank Project Cycle
Introduction:
• The World Bank Project Cycle outlines the different
phases a project goes through when financed by the
World Bank.
• It is a structured, systematic approach to ensure that
projects meet their development objectives and benefit
the intended populations.
What is the World Bank Project Cycle?
• The World Bank Project Cycle refers to the process that
governs the planning, approval, implementation, and
evaluation of projects funded by the World Bank.
• It ensures accountability, sustainability, and
development impact for World Bank-financed projects.
 Phases of the World Bank Project Cycle
• The World Bank Project Cycle consists of the
following six key phases:
• Identification
• Preparation
• Appraisal
• Negotiation and Approval
• Implementation and Supervision
• Completion and Evaluation
 Phase 1: Project Identification
 Objective:
• Identify and prioritize development needs that align with the
World Bank's goals and the borrowing country’s priorities.
 Key Activities:
• Conduct discussions with governments and stakeholders to
identify areas of need.
• Analyze the country’s development strategies and challenges.
• Identify potential projects that address pressing social,
economic, or environmental issues.
 Outcome:
• A Concept Note outlining the project idea, objectives, and
possible financing options is developed.
 Phase 2: Project Preparation
 Objective:
• Design the project in detail, addressing key issues like scope,
financing, and risk.
 Key Activities:
• Conduct detailed technical, economic, and environmental
assessments.
• Engage stakeholders, including communities, local governments,
and other development partners.
• Develop project documents such as feasibility studies,
environmental and social impact assessments, and cost
estimates.
 Outcome:
• A Project Appraisal Document (PAD) is prepared, including
details about objectives, activities, and expected results.
 Phase 3: Project Appraisal
 Objective:
• Assess the project’s readiness, financial viability, and
alignment with the World Bank’s goals.
 Key Activities:
• Review and validate the project design, feasibility, and
risks.
• Conduct environmental and social safeguard reviews.
• Evaluate the economic benefits and potential risks
associated with the project.
 Outcome:
• The World Bank team and the borrowing country agree on
the final project design and implementation plan.
Phase 4: Negotiation and Approval
Objective:
• Finalize legal and financial agreements between the
borrower and the World Bank.
Key Activities:
• Negotiate the terms and conditions of the loan or grant,
including repayment schedules, interest rates, and
disbursement procedures.
• The project is submitted to the World Bank Board of
Executive Directors for approval.
Outcome:
• Once approved, the project enters the formal loan/grant
agreement phase and the funds are made available to the
borrower.
 Phase 5: Implementation and Supervision
 Objective:
• Implement the project activities while monitoring progress
and addressing challenges.
 Key Activities:
• Disburse funds according to the project schedule.
• Conduct procurement and contract management.
• Supervise the project through regular monitoring and mid-
term reviews.
• Ensure compliance with environmental and social
safeguards.
 Outcome:
• Continuous monitoring to ensure that the project remains
on track and achieves its objectives.
 Phase 6: Completion and Evaluation
 Objective:
• Evaluate the project's results, impact, and overall
performance upon completion.
 Key Activities:
• Conduct a completion report that assesses the project's
effectiveness, efficiency, and sustainability.
• The World Bank’s Independent Evaluation Group (IEG)
conducts an ex-post evaluation of the project.
• Review lessons learned for future projects.
 Outcome:
• A Completion and Evaluation Report (ICR), detailing the
project's successes, challenges, and its long-term
development impact.
 Importance of the World Bank Project Cycle
• 1. Ensures Project Quality and Impact:
• Provides a clear structure to ensure projects are designed and
executed to maximize their development impact.
• 2. Involves Stakeholders:
• Encourages collaboration between the World Bank, borrowing
countries, and stakeholders at every phase.
• 3. Promotes Accountability:
• Ensures transparency and accountability in the use of World Bank
funds.
• 4. Risk Management:
• Identifies and addresses risks early in the project cycle, ensuring
smoother implementation.
• 5. Emphasizes Sustainability:
• Focuses on long-term outcomes and sustainability of benefits for
the project’s target populations.
 UNIDO’s Project Cycle
Introduction:
• The United Nations Industrial Development Organization
(UNIDO) supports industrial development projects aimed at
promoting sustainable development, industrialization, and
inclusive growth.
• The UNIDO Project Cycle is a structured process that ensures
projects are aligned with development goals, well-planned,
and successfully executed.
What is UNIDO’s Project Cycle?
• The UNIDO Project Cycle refers to the step-by-step process
followed to design, implement, monitor, and evaluate projects.
• It is designed to ensure that each project is efficient, effective,
and contributes to the long-term development goals of the
host country.
 Phases of UNIDO’s Project Cycle
• The UNIDO Project Cycle comprises six key
phases:
• Identification
• Formulation
• Appraisal and Approval
• Implementation
• Monitoring
• Evaluation and Reporting
 Phase 1: Project Identification
• Objective:
• To identify a development issue or opportunity that aligns
with both the country’s needs and UNIDO’s mandate.
• Key Activities:
• Conducting country needs assessments and consultations
with stakeholders.
• Identifying priority areas of intervention in line with
national development plans.
• Analyzing potential challenges and industrial
development needs.
• Outcome:
• The preparation of a Project Concept or Preliminary
Project Idea.
 Phase 2: Project Formulation
 Objective:
• To develop a detailed project proposal based on the identified
need.
 Key Activities:
• Stakeholder consultations to refine the project scope and
objectives.
• Feasibility studies to assess the technical, economic, social,
and environmental aspects of the project.
• Drafting a Project Document (ProDoc), outlining project
objectives, activities, expected outcomes, and a risk
management plan.
 Outcome:
• A fully developed Project Proposal ready for review and
funding.
 Phase 3: Project Appraisal and Approval
 Objective:
• To assess the technical and financial soundness of the project
and gain approval from relevant authorities.
 Key Activities:
• Conducting a comprehensive appraisal of the project’s
feasibility, including financial analysis, risk assessment, and
alignment with UNIDO’s development goals.
• Reviewing the project for environmental and social
safeguards.
• Submitting the project proposal to donors or funding bodies
for approval.
 Outcome:
• Project approval and confirmation of funding or partnerships.
 Phase 4: Project Implementation
 Objective:
• To carry out the project activities according to the plan and
achieve the desired results.
 Key Activities:
• Mobilizing resources, including financial and human capital.
• Executing the project’s activities in line with the project document.
• Ensuring that procurement, contracting, and resource allocation
are managed effectively.
• Coordination between UNIDO, host governments, and local
stakeholders.
 Outcome:
• On-the-ground implementation of project activities and progress
toward objectives.
 Phase 5: Monitoring and Reporting
 Objective:
• To track the progress of the project and ensure that objectives
are being met as planned.
 Key Activities:
• Regular monitoring and evaluation of project activities, outputs,
and outcomes.
• Collecting data on performance indicators to assess the impact
of the project.
• Identifying challenges or deviations from the project plan and
taking corrective actions.
• Submitting regular progress reports to stakeholders and funders.
 Outcome:
• Ongoing assessment of project performance and adjustments
made as needed to stay on track.
 Phase 6: Project Evaluation and Completion
 Objective:
• To assess the overall success of the project and capture lessons
learned for future interventions.
 Key Activities:
• Conducting a terminal evaluation to review the project’s
impact, effectiveness, efficiency, and sustainability.
• Engaging independent evaluators to ensure objectivity.
• Gathering insights on best practices, challenges faced, and
solutions implemented during the project.
• Disseminating findings to stakeholders, including government
partners, donors, and UNIDO.
 Outcome:
• A final Project Completion Report (PCR) is produced, and
lessons learned are documented for future projects.
 Introduction to DEPSA Project Cycle
• Title: Understanding the DEPSA Project Cycle
• Slide Notes:
– Welcome to the DEPSA Project Cycle. This model is
used for structuring projects efficiently to ensure
sustainable outcomes and clear accountability.
– The DEPSA cycle consists of five main stages: Design,
Execution, Planning, Sustainability, and
Accountability.
– Each phase plays a critical role in delivering
successful projects from conception to evaluation.
 Stage 1 – Design
• Title: Project Design
• Slide Notes:
– The Design phase is where the project's
objectives, scope, and feasibility are established.
– Key activities include stakeholder consultation,
needs analysis, and developing project blueprints.
– This stage ensures the project addresses the
correct problem and is aligned with the
organization’s goals.
 Stage 2 – Execution
• Title: Project Execution
• Slide Notes:
– Execution refers to the implementation phase
where project plans are put into action.
– Resources are allocated, timelines are followed,
and tasks are completed according to the project
plan.
– Constant communication and coordination among
team members are crucial during this phase.
 Stage 3 – Planning
• Title: Project Planning
• Slide Notes:
– The Planning phase involves detailed scheduling,
budgeting, and risk management.
– Effective planning reduces uncertainty and
ensures that the team is prepared for potential
challenges.
– A well-structured plan is essential for guiding the
project to successful completion.
 Stage 4 – Sustainability
• Title: Project Sustainability
• Slide Notes:
– Sustainability focuses on the long-term impact of
the project.
– It ensures that the project's outcomes are
maintained even after its completion.
– Activities such as capacity building, training, and
developing support systems are essential for
sustainability.
 Stage 5 – Accountability
• Title: Accountability in Projects
• Slide Notes:
– Accountability is crucial for assessing the project's
success and transparency.
– This phase involves monitoring and evaluation to
ensure the project meets its objectives and
justifies resource use.
– Proper reporting and documentation help in
learning lessons for future projects.
 Project Cycle Summary
• Title: The DEPSA Project Cycle: A Holistic Approach
• Slide Notes:
– In summary, the DEPSA Project Cycle offers a holistic
framework that integrates all key aspects of project
management.
– Each stage—Design, Execution, Planning, Sustainability,
and Accountability—contributes to a project’s success.
– Adhering to this cycle maximizes impact, ensures
resource efficiency, and promotes sustainable outcomes.
 Introduction to BAUM’s Project Cycle
• Title: Understanding BAUM’s Project Cycle
• Slide Notes:
– Welcome to BAUM’s Project Cycle. This is a robust
project management framework designed to ensure
systematic project delivery.
– BAUM stands for Baseline, Analysis, Update, and
Monitoring.
– These stages offer a sequential approach to
managing projects efficiently and ensuring
continuous improvement.
 Stage 1 – Baseline
• Title: Setting the Baseline
• Slide Notes:
– The Baseline phase is the starting point, where
project goals, objectives, and key performance
indicators (KPIs) are established.
– This stage is critical because it defines the reference
points for measuring success and progress.
– Activities include initial data collection, resource
identification, and setting project scope.
 Stage 2 – Analysis
• Title: Conducting an Analysis
• Slide Notes:
– The Analysis phase involves a deep dive into the
data and variables influencing the project.
– This stage focuses on understanding risks,
identifying opportunities, and evaluating
alternatives to ensure optimal decision-making.
– Techniques like SWOT (Strengths, Weaknesses,
Opportunities, Threats) analysis and cost-benefit
analysis are often applied here.
 Stage 3 – Update
• Title: Updating Plans and Strategies
• Slide Notes:
– In the Update stage, the project plan is adjusted
based on insights gained from the analysis.
– This involves refining objectives, timelines, and
resources to align with the project's evolving
needs.
– Flexibility is key in this phase to accommodate
changes and maintain project relevance.
 Stage 4 – Monitoring
• Title: Monitoring Progress and Outcomes
• Slide Notes:
– Monitoring is an ongoing phase that spans the entire
project lifecycle, but it's particularly critical towards the
end.
– This stage ensures that the project remains on track,
with regular checks against the baseline established in
Stage 1.
– Tools like Gantt charts, KPIs, and project dashboards are
commonly used to measure progress and outcomes.
 Project Closure and Review
• Title: Closing and Reviewing the Project
• Slide Notes:
– Upon reaching the project goals, the final step
involves formally closing the project.
– A thorough review is conducted to assess what
went well, what challenges were encountered, and
lessons learned for future projects.
– Documenting these insights contributes to
continuous improvement and organizational
learning.
Summary of BAUM’s Project Cycle
• Title: A Structured Approach to Project Management
• Slide Notes:
– In conclusion, BAUM’s Project Cycle provides a structured
framework that enhances project efficiency and
accountability.
– The Baseline, Analysis, Update, and Monitoring stages
work together to ensure that projects are well-planned,
adaptable, and thoroughly evaluated.
– This cyclical approach promotes not only successful project
completion but also sustainable and replicable results.
 Introduction to Sadhan Choudhury’s
Project Life Cycle
• Title: Understanding Sadhan Choudhury’s Project Life
Cycle
• Slide Notes:
– Sadhan Choudhury’s Project Life Cycle is a comprehensive
framework that provides a systematic approach to
managing projects effectively.
– It includes various stages designed to guide the project
from its initial conception to its successful completion and
beyond.
– The stages focus on strategic planning, execution,
monitoring, and closure to ensure optimal outcomes.
 Phase 1 – Conception and Initiation
• Title: Project Conception and Initiation
• Slide Notes:
– The Conception and Initiation phase is where the project
idea is born and evaluated.
– At this stage, project feasibility is assessed through needs
analysis, stakeholder identification, and a preliminary
resource evaluation.
– A formal project proposal or charter is developed to gain
approval and define the project’s scope and objectives.
– The goal is to determine whether the project is viable
and worth pursuing.
 Phase 2 – Planning and Design

• Title: Planning and Design

• Slide Notes:
– The Planning and Design phase involves creating a
detailed roadmap for the project.
– Key activities include resource allocation, risk analysis,
scheduling, and budgeting.
– This phase defines the project’s scope in detail, creates
work breakdown structures (WBS), and outlines clear
timelines and deliverables.
– Effective planning minimizes uncertainties and prepares
the team for smooth project execution.
 Phase 3 – Execution
• Title: Project Execution
• Slide Notes:
– The Execution phase is where the project plan is put into
action.
– Team members carry out tasks as per the plan,
deliverables are developed, and resources are utilized.
– It’s essential to maintain strong communication and
coordination across all stakeholders to ensure the
project stays on track.
– Adjustments may be made to the project plan as needed
to accommodate real-time challenges.
Phase 4 – Monitoring and Control
• Title: Monitoring and Control
• Slide Notes:
– In the Monitoring and Control phase, the project's progress is
tracked to ensure alignment with the project plan.
– Performance metrics are reviewed, and any deviations from the
plan are identified.
– Monitoring tools such as Gantt charts, Key Performance
Indicators (KPIs), and project dashboards are used to measure
progress.
– Control measures are implemented to address risks and ensure
that project objectives are met within budget and time
constraints.
 Phase 5 – Closure
• Title: Project Closure
• Slide Notes:
– The Closure phase marks the formal completion of the project.
– It involves finalizing all project activities, including the delivery
of final outputs, release of project resources, and formal
stakeholder sign-off.
– A comprehensive review is conducted to evaluate the project’s
success, document lessons learned, and ensure that all
objectives were achieved.
– Documentation is key in this phase for future project
references and organizational learning.
 Summary of Sadhan Choudhury’s Project
Life Cycle
• Title: The Complete Project Life Cycle
• Slide Notes:
– Sadhan Choudhury’s Project Life Cycle offers a structured
approach for managing projects through five key phases:
Conception and Initiation, Planning and Design,
Execution, Monitoring and Control, and Closure.
– Each phase builds upon the previous, ensuring that the
project is carefully guided from inception to completion.
– The framework promotes proactive planning, continuous
monitoring, and thorough post-project review to ensure
project success and sustainable impact.