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

Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand DevelopmentProject output Option Type of project Location Total Cost Amount of Supply Remarksirrigation service A1 CIS Barangay A Php 10 million 100 has. more cost-effectiveA2 Barangay B Php 6 million 50 has. less cost-effectiveB STWC SFRno shallow aquiferno feasible siteclassrooms D Barangay A 2,800,000.00 7 classrooms for further evaluationD1 Barangay B 2,800,000.00 7 classroomstarget pupils arefrom Barangay A.From A to B ismaximum of 2 hourswalkclassrooms +access roadD2 Barangay B 12,800,000.00 7 classrooms + 10 for further evaluationkms. of roadThe second project aims to build a schoolbuilding with 7 classrooms. Thetarget pupils are in Barangay A. We can consider three options:• Option D will build the school in Barangay A.• Option D1, will add classrooms to the nearby school in Barangay B,but this will entail at most a 2-hour walk for Barangay A pupils.• Option D2 – add classrooms to school in Barangay B and constructan access road from Barangay A to B.The least desirable is Option D1. Meanwhile, we will need to consideroption D in comparison with option D2.3.3 How much will the project cost? Can we sustain project operations?3.3.1 Following is a series of questions that the Project Proponent must beable to answer with reasonable accuracy. The PED technician mustverify the basis of the answers.a. How much is needed to operate and maintain the project in usableform?b. If we can charge user fees, how much should it be? How muchmore is needed to collect the fees (administrative cost of collectingthe fees)?c. Given the fees, what is the projected number of users?d. If we do not collect the fees, what is the projected number of users?e. If the project cannot be expected to pay for itself, will the provincialgovernment be willing to subsidize its operations and maintenance?By how much?RGEdillon January 200632