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
d) Project implementation and management
e) Project monitoring and supervision
f) Project evaluation
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DUPLICATION OR
REPLICATION
PROJECT
EVALUATION
PROJECT
IDENTIFICATION
PROJECT
MONITORING &
SUPERVISION
PROJECT
PREPARATION
PROJECT
IMPLEMENTATION /
MANAGEMENT
PROJECT PRESENTATION,
APPRAISAL, SELECTION,
NEGOTIATION, APPROVAL
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.
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.
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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 Writeup/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 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.
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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
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 decision-making and
establishment of communication channels.

Putting in place staff training and development programmes.

Establishment of linkages with the target group.

Formulation of evaluation plans.
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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.
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.
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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
PROJECTS
PROJECTS
PROGRAMME
PROJECTS
PROGRAMME
PROJECTS
PROJECTS
PROJECTS
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 on-going 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.
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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

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 individual’s retail shops; a farm belonging to Kigumba
Women Group.
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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 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 Non-Governmental 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
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
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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 development-oriented 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)
e) Nature – (Humanitarian, Development)
f) Size – (Small scale, large scale).
g) Geographical coverage – (Village, sub-county, district, country, two countries,
more than two countries).
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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 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.
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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
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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