Manual for Development Projects - Planning Commission

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Chapter-8 Timely or untimely completion of a project or a programme (delay in years). ii) Output or Impact Indicators Production (whether crops, livestock, forest products, fish, etc.) e.g., percentage of children in a target group receiving supplies feed, number of acres surveyed, loan applications processed/approved, trained manpower, a laboratory set-up etc. iii) Economic Indicators Financial and economic benefits (e.g., financial rate of return, internal rate of return, benefit-cost ratio, etc.). iv) Social Indicators - Quality of Life Indicators Income distribution with equity, level of food consumption, health and education facilities, shelter, access to essential amenities/basic needs, life expectancy, etc. Requirements for Undertaking an Evaluation Exercise 8.6 In order to undertake an evaluation of any project/programme, a study of its related documents is a prerequisite for acquiring sufficient knowledge and information thereof. The documents include:- (a) The approved PC-I alongwith the related project documents, concept clearance papers loan/grant agreement with foreign agencies etc, and feasibility study, if any; (b) Pre-approval appraisal notes/CDWP working papers; (c) Pre-approval technical scrutiny notes; (d) ECNEC summary and its decisions; (e) Sources of financial and other inputs; (f) Annual/quarterly progress reports; (g) Project review/monitoring/mid-term evaluation reports; (h) Special reports; and http://hd2/pc/popup/ch8_p.html Page 4 of 5 9/23/2010
Chapter-8 (i) Project completion report. The aforementioned documents form the basis of the assessment of different project activities. The site visits to the project will also assist in the assessment of the quantitative aspects of a project and its effect/ impact on the target group/beneficiaries. The following facts should be looked into in any evaluation exercise: i) Was the project properly conceived? Has it fulfilled its basic objectives? If not, what was wrong with the basic design? ii) Was the project adequately prepared? Were the forecasts of output or benefits correctly made to a reasonable extent? Was the technical preparation adequate? How good were the original cost estimates? If there were deficiencies in preparation, how those were removed or could be made up? iii) Was the project implemented as per the plan? If not, was this because of its haphazard preparation or because of delays in (a) the authorisation procedure, (b) obtaining suitable funds, and (c) other reasons? What lessons could be learnt to improve the implementation of other projects? Feed-back for the Future Page 5 of 5 8.7 Feed-back is the most important element of a systematic and integrated approach towards project appraisal, monitoring and evaluation. Essentially, it is the evaluation exercise which provides lessons for the feed-back, because the main objective of such studies is to compare the actual outcome of the project with the projections made in its appraisal and then the examination of essential positive and negative effects of the project, providing important lessons for the future. The feed-back from evaluation is a basic requirement of the management. An evaluation without any direction or support from the management can hardly be meaningful. To promote feed-back from evaluation, it is necessary to (a) substantiate proper evaluation findings and pay proper attention to specific issues of substance, (b) establish a feed-back mechanism, preferably to the policy-makers and senior management, and (c) rely upon feed-back through formal and informal arrangements. Feed-back from the evaluation is used for operational (mid-course corrections and follow-up action), analytical (improvement of project design, objectives etc.) and policy purposes (finding out the validity of a given development strategy etc.). To ensure that feed-back is used in systematic manner, there must be an adequate institutional mechanism for channelling the findings and recommendations to the appropriate decision-makers and managers for the necessary follow-up action. The managers and policy-makers should know how to guide and use evaluation for their needs. http://hd2/pc/popup/ch8_p.html 9/23/2010
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Manual for Development Projects - Planning Commission

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