Overview of Project Cycles and Stages

Project Cycle Overview

• A project life cycle is a linear progression from defining the project, planning, executing work, and closing.
• It involves various stages of activity, like initiation, planning, execution, monitoring, controlling, and closure.
• Each stage builds upon the previous one and leads to the next.

World Bank Project Cycle

• Identification, Preparation and Analysis, Appraisal, Implementation, Evaluation are the stages of World Bank Project Cycle.

UNIDO Project Cycle

• The pre-investment phase includes project identification, project preparation, and appraisal & investment decision.
• The investment phase includes acquisition, commissioning, test production & marketing. The operational phase follows after these.

Project Identification

• Potential projects emerge from specialists, local leaders, and national development strategies.
• Primary stakeholders are identified.
• Problem assessment and key objectives are defined.
• Alternative strategies for meeting these objectives are assessed.

Preparation and Analysis

• The technical, institutional, economic, and environmental financial issues of the project are examined.
• Alternative methods to achieve the objective are explored.
• Feasibility assessments are carried out, and further planning is determined.
• A project plan is developed.

Appraisal

• Critical review or independent appraisal of the project plan is crucial.

Evaluation

• A time-bound exercise assesses the relevance, performance, and success of the project.
• It assesses the impact, effectiveness, and sustainability of results for capacity development.
• Evaluation involves assessing the "how" and "why" behind progress and results.

European Commission-Project Cycle

• The cycle includes Programming, Identification, Formulation, Implementation, Monitoring, and Evaluation.

Programming

• The programming phase links individual projects to the overall strategic goals of the organization.

Identification

• The initial project draft includes all elements of the intervention logic.
• The activities to be undertaken, tangible results, underlying purpose, impact on the intervention area and long-term impact are assessed.

Formulation

• A narrative proposal outlines the project and the situation of the target groups.
• It identifies partners, objectives, and alignment with development strategies.
• Risks and their management plan are thoroughly evaluated along with stakeholder relationships.
• A detailed budget proposal and project planning is developed.

Implementation

• Practical project preparations like recruitment, team organization, logistics, equipment procurement and introduction to stakeholders are essential in this phase.

Monitoring

• Monitoring ensures the project's execution aligns with the plan.
• It involves tracking activities, outputs, and budget spending.
• Monitoring focuses on project progress rather than fundamental aspects.

Evaluation

• Evaluations can be internal (conducted by the organization) or external (conducted by an external evaluator).

Investment Phase

• The investment phase encompasses establishing legal, financial, and organizational bases.
• It includes technology acquisition, detailed engineering design, pre-production marketing, recruitment and training of personnel, and plant commissioning.

Operating Phase

• Short-term problems related to the initial production period, and implementation phase issues are paramount in this phase.
• Long-term issues, like strategy, production/marketing costs and sales reviews, must be thoughtfully considered as well.

Phase-to-Phase Relationships

• Sequential relationships are where one phase follows another.
• Overlapping relationships involve starting a phase before the previous one concludes.
• Iterative relationships involve planning one phase while work continues on the current one.