Module 5 Session 2

Notes: The Basic Concepts of Project Cycle

Management
Project Definition
Different scholars have defined the term project in different ways.
Below are some of the definitions:

Any single activity that involves expenditure and yields returns

and about which a decision must be made.

A one time set of activities involving the use of human,

material and financial resources to achieve a given result in a
specific period of time.

A planned undertaking or set of activities, which an individual,

group, organisation or country carries out within a given time
frame work and budget.

A set of activities, which aim at achieving specific objectives

within a stip0ulated period of time and budget.

From the above definitions the following words/terms should be

induced in the project definition.

Planned undertaking

Set of interrelated and coordinated activities

Budget

Time

Specific objectives

A project can now be defined as A planned undertaking or set of

interrelated or coordinated activities meant to achieve specific
objectives within a stipulated period of time and budget.

The Project Cycle

The project begins, continues, ends and begins again. This process is
continuous and is referred to as The Project Development Cycle.

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The Project Development Cycle is a continuous process made up of

separate and complementary stages (phases) each with its own
characteristics and each setting a ground for the next one.
As the stages lead into each other, the cycle is said to be circular
because it is assumed that one stage precedes and leads to the other
and as such the last stage leads to the first stage in a continuous
fashion.

An Example in Crop Farming:

The cycle begins with preparing of the garden, followed by planting,
weeding, harvesting and preparing the garden again and the cycle
continues.
Question
What shows that a project has begun or how do you know that a
project has begun?
The project begins:

When somebody conceives the idea

When a Government official makes a statement about it.

When data is collected about the area/community

needs/problems.

When one identifies a problem

When someone begins thinking about the project

Different agencies/organizations have adopted different names for

the same stages (phases). Some use few phases and others use
many phases to explain the project development cycle.
The following are considered to be important stages of the
cycle.
a) Idea conception and project identification
b) Project write up/formulation/preparation/design
c) Project presentation, appraisal, selection, negotiation,
approval

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d) Project implementation and management

e) Project monitoring and supervision
f) Project evaluation

DUPLICATION
OR

PROJECT
EVALUATION

PROJECT
IDENTIFICATIO

PROJECT
MONITORING &
SUPERVISION

PROJECT
PREPARATION

PROJECT
IMPLEMENTATION
/ MANAGEMENT

PROJECT
PRESENTATION,
APPRAISAL,
SELECTION,

Brief explanation of the stages (phases) of the cycle

Project Identification
Project identification is the basic phase of the project development
cycle. It begins with the conceiving of ideas or intentions to set up a
project.

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This phase involves collecting, processing and analyzing data on

problem/needs of the areas/community/organization. The data/
information generated during this stage / phase provides a basis for
the next or second stage of the project cycle.
The technical officers, will identify the problem statement and using
the problem tree analysis, solutions to priority problems/needs are
sought and it is from these solutions that a project may be identified
to address the problems/needs.

The project identification stage attempts to answer the questions:(a) How do projects come about?
(b) Where do projects come from?
(c) Why are projects where they are?
Project Preparations
This is the second stage of the project cycle. It is also referred to as:
Project Write-up/Project Design/Project formulation It involves
analyzing the information from the identification stage in details to
formulate a project document. The economic, financial, social,
ecological data are analysed and the results documented. These
dimensions are summarized under the project elements such as
background and context, project description, objectives, outputs,
activities, inputs, budget, organisation and management etc.
The preparation stage results in designing project documents
namely;

The project proposal for simple and small-scale projects.

Business plan for commercial projects.

Feasibility study for complex and large scale projects

Pre-feasibility study conducted to precede the feasibility

study.

Project Presentation
Project presentation involves the forwarding or handing over the
project document to the proposed financing agency. An introductory

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letter accompanies it designed by the implementing agency or

organisation seeking funds.
Project Appraisal
After the project has been presented to the financing agency,
arrangements are made by the financing agency to have the project
appraised. This is the assessment or in depth analysis or examination
of all the aspects of the project namely technical, financial,
commercial, community participation, socio-economic benefits,
organization and management, environmental impact, political risks,
project sustainability and replicability.
In the process of appraisal, the appraisal team is to establish
whether the project is possible (feasible) or worthwhile (viable). An
appraisal report is then prepared and it serves as a basis for
negotiation with the agency that requested for financing.
Project Selection, Negotiation and Approval
This involves reviewing of the appraisal report and selection of the
most appropriate project. This goes with obtaining formal
government approval of credit arrangements (where necessary),
funding authorization and preparation of loan documents.
This also forms part of project negotiation. At this level, the
implementing and financing agencies draw up a formal
implementation or operation plan. Once all these are done and are
acceptable to both parties then, the project is approved and funds
and other resources are committed for the implementation of the
project.
Project Implementation / Management
Project implementation begins when resources are committed to the
project. Implementation is the stage when the project proposal is
transformed into the actual project or reality. It is in short, putting
into practice the plans that had earlier on been appraised following
the already laid down time table or work plan. It leads to the
realization of project outputs and immediate objectives.
It involves 2 levels:
a) Project activation

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b) Project operation
Project activation involves the coordination and allocation of
resources to make the project operational.
Project activation involves

Establishment of Project Implementation Units (PIUs)

Recruitment of project manger and other staff.

Procurement of supplies

Preparation of contingency plans

Designation of the internal projects authorities for decisionmaking and establishment of communication channels.

Putting in place staff training and development programmes.

Establishment of linkages with the target group.

Formulation of evaluation plans.

Project operation is the level when the actual implementation takes

place i.e. when the project reaches its full development and normal
life.
At this level, the inputs are transformed into outputs via activities.
Project Monitoring and Supervision
Project Monitoring is carried out during the implementation stage of
the project cycle. It is a continuous assessment or review and
surveillance by the project management at every level of the
hierarchy of the implementation of the project to check on the
progress of the project by ensuring that input and material
deliveries, work schedules, targeted outputs and other required
actions are proceeding according to plan.
In simple terms, Keeping track of events in relation to work plan
and targets.
The basic purpose of project monitoring is to achieve efficient and
effective project performance by providing a feed back to the project
management at all levels.
This enables the management to improve operational plans and take
timely corrective action in case of constraints or short falls.

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Monitoring is part of the Management Information System (MIS) and

an internal activity.
It is done on the basis of:

Periodic reports

Regular project management and staff meetings

Observations

Field visits and inspection.

Outsiders like the donor/financing agency, relevant government

departments, beneficiaries and other stakeholders on the other hand
can simply refer to project supervision as external monitoring
because it is the overseeing of project execution.
Project Evaluation
This is a process of determining systematically and objectively the
relevance, efficiency, effectiveness and impact of the project in light
of its objectives. The question to be asked is, Has the project
achieved its objectives?
Evaluation is a more comprehensive review, assessment and critical
analysis not only of the project results, but also the initial
assumptions underlying the project elements including the relevance
of the problem statement.

Comparing and Contrasting the Terms Project, Programme and Plan

A project is part of a programme and a programme is in turn part of
a plan.

PLAN

PROGRAMME

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PROJECT
S

PROJECT
S

PROJECT
S

PROJECT
S

PROJECT
S

PROJECT
S

A programme
Is an organized set of projects/activities/processes/services that are
oriented towards the attainment of specific objectives .e.g UNEPI
(Uganda National Expanded Programme for Immunization), NURP
(Northern Uganda Reconstruction Programme) etc.
a)

Both projects and programmes are undertakings organized to

achieve specific

a)

A project is strictly time bound and as such must be

implemented within a stipulated period of time. It has a fixed
starting and ending time. But programmes are normally ongoing projects or activities and not very strict with time e.g
Luwero Triangle Rehabilitation Programme which started in
1986 and is still going on.

A Plan
On the other hand is a systematic way of attaining a set of broad
objectives with given resources taking into account the past and
present situations e.g. Masaka district sustainable development plan.

Nature and Types of Projects

From the definition in section 1 above, many activities or actions can
be looked at as projects. The following are some of the examples of
projects:

Farming

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Tree planting

Building a school

Constructing a health centre

Road construction and maintenance

A poultry unit

Aids counseling

Universal Primary Education (UPE)

Relief to the refugees/displaced persons.

Rehabilitation of war devastated areas

Establishing an orphanage

A radio broadcast campaign against AIDS

Categorization of Projects
The project listed in 3 above can be grouped/categorized according
to common characteristics:
a) Economic projects
These are projects that aim at generating income e.g. cash crop
framing, business concerns like shop keeping, an industry, a
commercial far.
b) Social Projects
These are projects that aim at providing social services and do not
earn a direct income e.g. projects on education, health, water and
sanitation, road construction and maintenance.
c) Private Projects
These are projects that belong to and are managed by individuals or
groups of individuals. They aim at making a profit e.g. an individuals
retail shops; a farm belonging to Kigumba Women Group.
d) Public/Community Projects
These are projects that are community owned and benefit society
(community) as a whole without exclusion e.g. roads, public grazing

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land, swamp or forest, where everyone may be free to harvest herbs,

firewood, fruits, building materials without questioning; public
utilities like water, electricity, postal services but most of the public
utilities have now been privatized by the Government.
e) Local or National Projects
Local projects are those projects which are initiated or funded by a
given country or local authority District, sub-county, city
municipality. National projects on the other hand are projects
common to a Country/Nation or cover the whole country e.g. UPE,
Polio immunization, national road construction network.
f) International Projects
These are projects that involve or are implemented by two or more
countries. They may be referred the as:
-Bilateral - Involving 2 countries e.g. TANZAM Railway
-Multi-lateral- involving more than 2 countries e.g. COMESA
(Common Market for East an Southern Africa) Projects e.g. EADB
(Easy African Development Bank) belonging to Uganda Kenya and
Tanzania.
g) Government Projects
These are projects initiated, planned and implemented by
Government e.g. UPE, Poverty Alleviation Project (PAP), Entandikwa
Credit Scheme, Reconstruction of Kafu Karuma Road, bonna
bagagawale.etc..
h) Non-Governmental Projects
These are projects, initiated, set up and implemented by NonGovernmental Organisations (NGOs) both indigenous (Local) and
foreign (or international).
i) Small Scale (Micro) Projects
Also referred to as Micro-enterprises, these are projects which are
small in size, uses limited resources, employs few people, has small
capacity e.g. a poultry unit, a wood lot, retail shop, a road side seller.
j) Large scale (Macro) Project

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Also referred to as Macro Projects, they are projects which are large
in size and scope, require heavy initial investment, employ many
people of diverse skills, have high capacity of production e.g hydro
electric power plant (HEP); sugar processing factory, road
construction e.g Bujagali in Jinja, Kinyara Sugar Works in Masindi.
k) Relief/Humanitarian Assistance Projects
These are projects that aim at redressing or alleviating the social or
natural calamities as result of floods, storms, earthquakes, famine,
drought, war, and epidemic outbreaks. These projects give
assistance to people on humanitarian grounds and are funded by
humanitarian organizations such as Red Cross and Red Crescent,
Churches, Muslim league, United Nations Organisations World
Food Programme (WFP), WHO, UNICEF, UNHCR etc.
l) Rehabilitation Projects
Also referred to as reconstruction projects, these are projects that
restore the former glory after may be a disaster has occurred.
Examples of such projects include Luwero Triangle rehabilitation;
Northern Uganda Reconstruction Programme (NURP), World Vision
Centre for the war traumatized children in Gulu.
m)

Developmental Projects

These are projects that add to the existing stock of the community.
They bring about qualitative and quantitative change. Apart from
relief projects, the remaining categories of projects are developmentoriented projects.

Note:
a) Categories of projects are many and depend on the
following factors:
b) Purpose (Income, profit, social services relief, restoring
former glory).
c) Sources of funds (Equity capital, governmental, NGO,
humanitarian organizations, local authorities).
d) Ownership (Individuals and community)

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e) Nature (Humanitarian, Development)

f) Size (Small scale, large scale).
g) Geographical coverage (Village, sub-county, district,
country, two countries, more than two countries).

Characteristics of Projects
While projects may have much in common, they may still differ from
each other in significant ways;
I. Duration
Some projects may take just months to implement while others may
take many years to implement. A broiler chicken project may
take two months to accomplish while a mahogany tree growing
project may take up to 30 years.
II. Financial Requirements
Some projects need limited initial capital while others require a
heavy initial investment e.g. a hydroelectric dam.
Some projects are implemented using money generated from their
parent organizations while others require external assistance in form
of loans, donations/grants, and credit.
With some projects there is a one time initial investment while others
the investment may be spread over the life period of the project in
form of working capital.
III.

Geographical Scope

While some projects are located in one spot, others may have many
offices over a wide area e.g. poverty alleviation project (PAP) which
has offices in every district.
IV.Repetition/Replication
Some projects are implemented once and are not duplicated. Others
are repeated in the same place or for the same beneficiaries (project

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duplication) while others are implemented elsewhere for different

beneficiaries (project replication).
V. Breadth of Purpose
Not all projects focus on a single objective. Some are multi-purpose
and involve many agencies and target groups such as settlement
schemes or integrated rural development projects.
VI.

Urgency of Need

For some project there is no time to go through all the steps of

planning before implementing the project e.g. relief projects which
are meant to address disasters such as famine, disease outbreaks
like cholera, displacement due to war, floods earthquakes.

Project Planning
Planning:

Thinking and working out what to do about something before it

happens.

To look ahead, to prepare now what to be done and

accomplished in future.

It is a process of generating and organizing ideas for purposes

of accomplishing desired objectives.

It is a four set process of STOP-THINK-DECIDE-AND ACT.

It involves predicting and making a forecast into the future.

NOTE:
(i) Planning is a pre-requisite for development.
(ii)Planning aids decision-making and helps to take actions
that give desired results.
(iii)
Proper planning enables us to do things efficiently
and effectively.
Project Planning

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It is looked at as, Arrangements for setting up and implementing

project and it involves tracing the life history of the project right
from the beginning to the end (project development cycle).

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