PED guidebook main sxn rev6. FINAL.pdf - LGRC DILG 10

Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand Development3. ANALYZE IT THOROUGHLYAt this stage, we are left only with “big” projects or those that are to be fundedexternally and all of these passed the initial screening (i.e., the steps in KNOW andUNDERSTAND the project).To ensure that the same standard is applied across the different projects, following isa series of questions that need to be answered satisfactorily.A project may be screened out if the answer to any of theseis not satisfactory. Moreover, since the questions need tobe asked in sequence, once the answer to one isunsatisfactory, the remaining questions need not be asked.3.1 What is the market situation like for the project’s output? 93.1.1 We can have an idea of the likely demand for the project’s output byobserving the existing demand and supply of the same good. If thedemand is more than the supply of the good, then clearly, there is a supplygap and this can be filled up by the project’s output.Example (j): Long queues at hospitals and clinics imply a shortage in the supply ofhealth care facilities. Overcrowded classrooms indicate a shortage in the supply ofclassrooms (and even teachers). High incidence of absenteeism during certainschool days (say, rainy season) may indicate poor access of the classroom to thehouses of the students.Example (k): Consider a proposal from Community C to construct a schoolbuilding.At present, the nearest school is more than an hour’s walk from the house nearest totheir barangay hall. Below is their projected demand, based on population projectionof the age cohort 6-12 years old.RequiredProject number ofschoolersnumber ofclassroomsYear 0Year 1 287 7Year 2 296 7Year 3 305 8Year 4 314 8Year 5 334 8Year 6 354 9Year 7 374 9Year 8 394 10Year 9 414 10Year 10 434 119 This is similar to market analysis.RGEdillon January 200628