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

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Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand Development3.6 Other Indicators of Quality of Life – The project is expected to improve thequality of life. Especially in the rural areas, these are projects that provideelectricity, access to potable water, schools, etc.4. Contribution of the project to overall development4.1 There is now an emerging strand in <strong>PED</strong> literature to adopt a programmaticapproach in rating “projects”. This means looking at the entire investmentportfolio of the proponent. This arises from the realization that funds arefungible. They may think they are funding a “worthy” project, when it fact, itfrees up internal resources for the province to undertake “marginal” projects.4.2 You may be asked to present your entire investment portfolio. Should the needarise, you need to convince the funder that all projects went through a criticalprocess of screening and prioritization.Following is a suggested prioritization scheme:4.2.1 Given the set of projects that passed all the above tests in Part II and if itis still necessary to prioritize, we may begin by summarizing the results ofall the analyses undertaken as in Table 11.4.2.2 We may present the results, first by prioritizing R projects over S projects,and over C projects.4.2.3 The next iteration may look into the location and sectors that will bebenefited by the project. The prioritization will then follow the LGUsdevelopment strategy.4.2.4 The final iteration will compare net present values (NPV), but adjusted sothat the time frame of the analysis is <strong>main</strong>tained. 1818 Refer to Technical Appendix, pages 28-30 for a more detailed discussion of comparing NPV of projects withdifferent economic lives.RGEdillon January 200666
Strengthening Provincial/Local Project EvaluationPlanning and Expenditure Managementand DevelopmentTable 11Working Table for Prioritization of ProjectsProject Title Output Location SectorType of ProjectS R NEconomicLifeImpactTiming ofNPV(Unadjusted)NPV(Adjusted)RemarksLegend for Type of Project:S - Stand-alone projectR - Requisite project for other projects to achieve impactC - needs a Companion project to achieve impactRGEdillon January 200667
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PED guidebook main sxn rev6. FINAL.pdf - LGRC DILG 10

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