Podcast
Questions and Answers
Which of these activities would NOT occur during the Investment Phase (Implementation Phase)?
Which of these activities would NOT occur during the Investment Phase (Implementation Phase)?
What is the primary goal of the Operational Phase?
What is the primary goal of the Operational Phase?
What is the purpose of the "Pre-investment Phase"?
What is the purpose of the "Pre-investment Phase"?
Which of the following is NOT included in the activities performed during the Investment Phase?
Which of the following is NOT included in the activities performed during the Investment Phase?
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What is the primary difference between the Pre-investment Phase and the Investment Phase?
What is the primary difference between the Pre-investment Phase and the Investment Phase?
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What are the four major sources of project ideas, according to the given text?
What are the four major sources of project ideas, according to the given text?
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When identifying project ideas, what is the importance of understanding the 'political history' of the project?
When identifying project ideas, what is the importance of understanding the 'political history' of the project?
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Which of the following factors is NOT mentioned in the text as a basis for identifying project ideas?
Which of the following factors is NOT mentioned in the text as a basis for identifying project ideas?
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What is the main focus of the project preparation and analysis phase?
What is the main focus of the project preparation and analysis phase?
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What must project preparation cover to achieve the project’s objectives?
What must project preparation cover to achieve the project’s objectives?
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Why are different resource endowments—labor or capital—considered during project preparation?
Why are different resource endowments—labor or capital—considered during project preparation?
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Why is it important to assess possible alternative projects during the identification stage?
Why is it important to assess possible alternative projects during the identification stage?
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Which of these factors is NOT explicitly mentioned in the text as an aspect that the identification of project ideas rests on?
Which of these factors is NOT explicitly mentioned in the text as an aspect that the identification of project ideas rests on?
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What is the primary difference between a prefeasibility study and a feasibility study?
What is the primary difference between a prefeasibility study and a feasibility study?
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Which of the following is NOT considered a key element of a feasibility report?
Which of the following is NOT considered a key element of a feasibility report?
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What is the purpose of a feasibility study in project selection?
What is the purpose of a feasibility study in project selection?
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What is the main purpose of appraisal in project evaluation?
What is the main purpose of appraisal in project evaluation?
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Which of the following is NOT a common appraisal criterion?
Which of the following is NOT a common appraisal criterion?
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Which of the following is a key factor that influences risk analysis in project evaluation?
Which of the following is a key factor that influences risk analysis in project evaluation?
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What is a primary focus during the appraisal stage of project evaluation?
What is a primary focus during the appraisal stage of project evaluation?
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What is a key aspect of the feasibility study that enables the project analyst to select the most promising project?
What is a key aspect of the feasibility study that enables the project analyst to select the most promising project?
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What is the primary purpose of the project implementation phase?
What is the primary purpose of the project implementation phase?
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What are the potential consequences of delays during the implementation phase?
What are the potential consequences of delays during the implementation phase?
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What is the significance of a well-developed project plan?
What is the significance of a well-developed project plan?
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Which of the following is NOT mentioned as a potential factor that can influence the implementation phase?
Which of the following is NOT mentioned as a potential factor that can influence the implementation phase?
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What are the three time periods typically used to divide the implementation phase?
What are the three time periods typically used to divide the implementation phase?
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In the context of project management, what does 'ex-post evaluation' refer to?
In the context of project management, what does 'ex-post evaluation' refer to?
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Which of the following is NOT a component examined during a pre-feasibility study?
Which of the following is NOT a component examined during a pre-feasibility study?
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What is the main purpose of a pre-feasibility study?
What is the main purpose of a pre-feasibility study?
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What is the primary focus of the ex-post evaluation stage?
What is the primary focus of the ex-post evaluation stage?
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According to UNIDO, what are the three major phases involved in the project cycle?
According to UNIDO, what are the three major phases involved in the project cycle?
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What is the next step if a pre-feasibility study indicates the project is viable?
What is the next step if a pre-feasibility study indicates the project is viable?
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What kind of information does the identification process provide for the pre-feasibility study?
What kind of information does the identification process provide for the pre-feasibility study?
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What is the significance of "prima facie attraction" in the context of a pre-feasibility study?
What is the significance of "prima facie attraction" in the context of a pre-feasibility study?
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What is the intended outcome of the feasibility study?
What is the intended outcome of the feasibility study?
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What is the role of discipline specialists in the pre-feasibility study?
What is the role of discipline specialists in the pre-feasibility study?
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What is the relationship between pre-feasibility and feasibility studies?
What is the relationship between pre-feasibility and feasibility studies?
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What are the two common approaches used to describe the project life cycle?
What are the two common approaches used to describe the project life cycle?
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Which stage of the project cycle involves gathering information, analysis, and decision-making?
Which stage of the project cycle involves gathering information, analysis, and decision-making?
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What is the primary focus of the Identification stage in the project cycle?
What is the primary focus of the Identification stage in the project cycle?
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What are the key elements of the project cycle?
What are the key elements of the project cycle?
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Which stage of the project cycle involves evaluating technical, financial, and economic aspects?
Which stage of the project cycle involves evaluating technical, financial, and economic aspects?
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In the context of project cycle, what is the role of the firm?
In the context of project cycle, what is the role of the firm?
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How does the project cycle approach differ from the traditional project management life cycle?
How does the project cycle approach differ from the traditional project management life cycle?
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What are the key factors to consider when identifying potential investment opportunities?
What are the key factors to consider when identifying potential investment opportunities?
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Study Notes
Project Cycle
- A project cycle is a series of events a project follows.
- Stages or phases can be divided in various ways, depending on the involved parties.
- Some stages may overlap.
Project Cycle Meaning
- Refers to the stages of project planning, from initiation to implementation.
- Equivalent to the life cycle of a project, progressing from early stages to maturity.
- Key features include information gathering, analysis, and decision-making.
Project Cycle Approaches
- World Bank project life cycle
- UNIDO (United Nations Industrial Development Organization) project life cycle
World Bank Project Cycle
- Divided into six phases:
- Identification
- Pre-feasibility study
- Feasibility study (technical, financial, economic)
- Selection and project design
- Implementation
- Ex-post evaluation
Project Cycle - Identification Phase
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The first stage is identifying potential projects.
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Finding promising investments requires imagination and awareness of environmental changes, assessing realistically what can be done.
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This phase has two forms, depending on project origin:
- Private ventures in a market economy context: Initiating party defines project concept, expectations, and objectives.
- Government-led initiatives: Sectoral data (direct and indirect demand) is a primary source.
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Four major sources of project ideas:
- Technical specialists
- Local leaders
- Entrepreneurs
- Government policy and plans
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At the identification stage, alternative project options may be considered. Sometimes, projects may not align with national plans but understanding the political history is advisable. Aspects to consider during idea identification:
- Needs (need assessment surveys)
- Market demand (domestic or overseas)
- Resource availability
- Technology
- Natural calamities
- Political considerations
- Project alternatives
Project Preparation and Analysis Phase
- Commences after project ideas are identified.
- Requires a full range of technical, institutional, economic, and financial conditions to achieve the project's goals.
- Key element: identifying and comparing technical and institutional alternatives for objectives.
- Resource endowment (labor or capital) must be considered.
- Includes feasibility studies.
- Preliminary designs of technical and institutional alternatives will be created.
- Cost-benefit comparisons and detailed investigation are done for satisfactory solutions.
- Consists of pre-feasibility and feasibility studies.
Pre-feasibility Study
- Provides background information to define the project's basic concept leading to the feasibility study stage
- A preliminary assessment of the project's viability
- Assessing project's prima facie attraction to justify feasibility study
- Identifying aspects critical to project variability justifying in-depth investigation.
- Assessing project's prima facie attraction to justify feasibility study
- Obtaining approximate cost/benefit valuation of major components
- Components considered: adequate market availability, project growth potential, investment costs, operational costs, distribution costs, demand/supply factors, and social and environmental considerations.
- Preliminary financial and economic analysis of the project is conducted.
Feasibility Study
- Detailed analysis to determine project viability.
- Focuses on marketing, technical, financial, economic, and ecological aspects.
- Collaboration of specialists (scientists, engineers, economists, sociologists) for accurate data collection.
- Resulting in a feasibility report, which comprises market analysis, technical analysis, organizational analysis, financial analysis, economic analysis, social analysis, and environmental analysis.
Appraisal
- Selecting the most viable project from multiple alternatives.
- Evaluation of project worth/profitability, utilizing various appraisal criteria (non-discounting and discounting criteria).
- Includes assigning cut-off values to criteria.
- Risk analysis is a crucial part of appraisal, which can influence different criteria.
- Finalizing detailed engineering design, manpower and administration requirements and marketing procedures.
Implementation
- Project starts after securing funding following project design preparation.
- Considered the most important project cycle stage.
- Project plans must be realistic and adaptable to changing circumstances.
- Involves tendering and contract signing.
- Flexibility is essential due to technical, price, and political changes.
- Implemented in three phases: investment phase, development phase, and project life.
- Investment phase involves major investments lasting 3-5 years.
- Development phase continues for 3-5 years.
- Project life span encompasses the entire duration, from initiation to completion.
- Delays in implementation can lead to cost overruns.
Ex-post Evaluation
- The final evaluation stage of a project to review successes and failures to improve future project planning.
- This often-neglected stage aims to examine the project plan and the actual outcomes.
- Performance reviews are crucial, comparing actual project performance against what was planned.
UNIDO Project Life Cycle
- Divided into three phases:
- Pre-investment (identification, opportunity study, pre-selection, pre-feasibility, preparation, feasibility studies, project appraisal).
- Investment (implementation)
- Operation (operation and ex-post evaluation).
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Description
Test your knowledge on the various phases of project management, including the Pre-investment, Investment, and Operational Phases. Understand key concepts and differences between these stages, as well as sources of project ideas and their importance. This quiz will help reinforce your understanding of project preparation and analysis.
