Manual for Development Projects - Planning Commission

Chapter 4
iii) Equity
(b) Sponsoring Agency's Own Fund
(c) Private Investment
(d) Local Body Services, if any
(e) Non-Government Borrowing
(f) Other Sources (e.g., Recoveries)
Usually foreign aid negotiations should be undertaken after a project has been approved by the competent
authority or at least cleared by the Concept Clearance Committee headed by the Deputy Chairman,
Planning Commission.
Financial Phasing
4.17 The financial phasing of a project is to be given for each financial year related to the physical work
proposed to be undertaken, keeping in view the implementation of similar projects in the past. It should be
as realistic as possible. Funds utilization capacity of executing agency should be kept in view while
determining financial phasing of project.
Physical Scheduling of Activities
4.18 The scheduling of activities and availability of physical facilities are interlinked with the completion
period. The availability of physical facilities e.g., (i) access road, (ii) power supply, (iii) water, gas,
telephone and other utilities, (iv) education facilities, (v) housing etc., have to be ensured. The sponsoring
agency has also to indicate separately what facilities would be available from the project itself and to what
extent these would be available from the public utilities. The scope of work to be carried out should be
gone into very thoroughly to facilitate physical and financial phasing as well as supervision.
Period of Implementation
4.19 Time calculated for the completion of the project should be on a realistic basis. The following factors
will have to be taken into consideration to firm up the implementation period:
(a) Total allocation made in the Five Year Plan.
(b) Expected allocations in the PSDP, keeping in view the past experience.
Page 8 of 11
(c) Time to be taken in preparing the detailed design(s), invitation of tenders and award of contract(s).
http://hd2/pc/popup/ch4_p.html
9/23/2010