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This module examines demand for the goods and services of a project in thedomestic or foreign market and the supply condition expected to prevail duringthe project

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This module examines demand for the goods and services of a project in thedomestic or foreign market and the supply condition expected to prevail duringthe project¶s life. 2)Technical or engineering module This module is concerned with a project¶s input parameters, quantities and pricesof inputs by type required for project construction, inputs required for theproject¶s operation by year, and the propriety of the technology adopted. It is alsoconcerned with issues such as project size, design an
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    This module examines demand for the goods and services of a project in thedomestic or foreign marketand the supply condition expected to prevail duringthe project¶s life.   2)Technical or engineering module   This module is concerned with a project¶s input parameters, quantities and pricesof inputs by typerequired for project construction, inputs required for theproject¶s operation by year, and the propriety of the technology adopted. It is alsoconcerned with issues such as project size, design and location, and   thetechnology to be adopted including equipment and processes to be used.Assessment of the   environmental impact caused by inputs, outputs or technologyshould be a central component of this   module.3)Manpower and administrative support moduleThis module reconciles the project¶s technical and administrative requirementswith the supply constraintson manpower. Whether future financial and economicbenefits materialize depend on whether there issufficient administrativecapability within an agency in charge to put the project in place.   4) Financial moduleThis module provides the first integration of financial and technical variablesestimated in the marketing,   technical and manpower modules. A cashflow profileof the project is constructed, which identifies allreceipts and expendituresexpected to occur during a project¶s lifetime.   5) Economic moduleEconomic appraisal examines the project from the entire economy¶s point of viewto determine whether ornot its implementation will improve the economicwelfare of the country or the region. Benefits and costs   are measured usingtechniques to determine the economic prices of goods and services, foreignexchangeand the cost of capital and labor. True economic values of costs andbenefits are not reflected in marketprices in the presence of various distortionssuch as trade restrictions, price control, taxes, subsidies andminimum wages.   6) Social moduleThis module deals with the identification and quantification of the project¶simpacts on its stakeholders,including the well-being of particular groups insociety.7) Institutional moduleThis module addresses the following issues:-Is the entity supposed to manage the project properly organized and its   management equipped to handle the project?   -Are local capabilities and facilities being properly utilized?   -Are changes needed in the policy and institutional setup outside this localentity?8) Environmental moduleThis module should address the following issues:   -What impact will the project have on the environment?-What equipment or facilities will be required to reduce or eliminate thepollution from the project and what will be their cost?-What will be the cost of providing remedies to the adverse impact created    by the project? Project approval and financing negotiations  After all modules in the feasibility phase have been completed, the project mustbe examined tosee if it can meet the financial, economic and social criteria set by thegovernment (e.g., the NEDA ICC) forinvestment expenditures. This is the final part ofproject appraisal and is meant to improve the accuracy of   the measures of key variables ifthe project shows potential for success. More primary research will have to be undertakenand perhaps a second opinion sought on other variables. Since estimates of costsandbenefits may be subject to error, the sensitivity of the project¶s outcome to variations inthe values of key variables must be analyzed.Cost estimates should at this point be very accurate and the sources and nature offinancing   identified. Identification of financing at this stage will ensure that the projectcan proceed to the next   phase. Also, the implication on the project costing of each type offinancing will be established. At the end of this stage, the decision to approve or disapprove a project must be made. Ifthe feasibility    study convinces decision-makers to approve a project, the next major stepsare tying up the financing anddeveloping a detailed project design.   I nvestment PhaseDetailed design In this point in the project cycle, preliminary design criteria must be establishedwhen the project   is identified and appraised, but expenditures on detailed technicalspecifications are usually not warrantedat this time. Once the project has been approvedfor implementation, the design task should be completedin more detail. Details of thebasic programs should be provided, tasks allocated, resources to be   determined andfunctions to be carried out along with their priorities set down in operationalform.Technical requirements, such as manpower needs by skill class, should also be completedat thisstage. After the blueprints and specifications for construction of facilities andequipment are completed,   operating plans and schedules along with contingency plansmust be prepared and brought together.    When this process is completed, the project is again reviewed against the criteriafor approval and   implementation. If it is unable to meet the criteria, the result must bepassed onto the appropriateauthorities for final disapproval or acceptance. Project I mplementation This stage covers both the completion of construction activities and thesubsequent operations.Implementation is generally divided into three time periods: aninvestment period when the major   investments are made; a development period whenproduction capacity is gradually built up; and the   period of full implementation.Resources are allocated and coordinated to make the project operational.Proper planningat this stage is essential to prevent undue delays and administrative procedures have to    bedesigned for the smooth coordination of the activities required in project implementation.All projects   face implementation problems, usually due to planning flaws or changes inthe economic and politicalenvironment. Thus, monitoring and supervision systems haveto be evolved to ensure that implementation   is completed successfully and on time. Post- I nvestment PhaseProject Operation  A project reaches the operation stage after investments have been made. It iswhen the expectedproject benefits start to be generated. As soon as the project isoperational, it is essential that the skills,   plans and controlling organization be availableto carry on with the function of the project in order to   avoid excessive start-up costs. Mid-Term and Ex-Post Project Evaluation For the development of the operational techniques of project appraisal andimprovement in theaccuracy of evaluations, it is useful to compare the projects predictedwith its actual performance. In anex-post evaluation, elements of success or failure areanalyzed. A project evaluation is a must before any   follow-up project is planned. A finaldetailed ex post evaluation must be undertaken once the project isterminated.To facilitate this type of evaluation, the administrative aspects of projectdevelopment must bereviewed as soon as the project becomes operational. An auditshould be conducted immediately after theconstruction phase and a completion reportsubmitted. The project¶s outcome (net present value orinternal rate of return) should bere-estimated based on actual investment costs and updated costs of maintenance andoperations.More extensive than the audit is the ex post evaluation, where the project¶sperformance andoverall contribution to development is assessed. Such an evaluation alsoidentifies the critical variables inthe project¶s design and implementation that may havedetermined its success or failure. From such an   evaluation should emerge well-consideredrecommendations about improving each aspect of the projectdesign and actualimplementation. Based on this evaluation, ongoing projects may be modified   andsubsequent projects in the sector can be improved. Evaluation may be performed bydifferent partiesdirectly or indirectly involved with the project.
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