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

Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand DevelopmentSummarizing the AnalysisWe reiterate the series of questions that need to be answered in conducting the projectevaluation.5.1 Each project needs to be subjected to the first two sets of questions.5.1.1 What is the rationale for the project?Before proceeding, we need to determine if the project is a Stand-alone project,Required project for other projects to achieve output, or Needs another project toachieve output.If the rationale for the project cannot be traced back to the developmental goalsof the province, as spelled out in the PDP, we need not proceed.5.1.2 What is the market situation like for the project’s output?If there is no clear excess demand for the project, we need not proceed.5.2 If there is excess demand (supply gap is another way of putting it), we subject theproject to the next set of questions:5.2.1 Is the project technically feasible?5.2.2 How much will the project cost? Can we sustain project operations?5.3 If the project cannot be expected to “pay for itself”, is the province willing tosubsidize the operations and maintenance? By how much? What are we giving upin exchange?5.3.1 How much is the true cost of the project to society?5.3.2 How much is the benefit of the project worth to society?5.3.3 What is the net impact of the project to society?5.3.4 Nothing is certain. Is the project worth pursuing despite the uncertainties?RGEdillon January 200658