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Project Cycle Management Training Handbook - CFCU

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28<br />

<strong>Project</strong> <strong>Cycle</strong> <strong>Management</strong> <strong>Training</strong> <strong>Handbook</strong><br />

• Policy support – the extent to which the partner government have<br />

demonstrated support for the continuation of project services<br />

beyond the period of donor support.<br />

• Appropriate technology – whether the technologies applied by the<br />

project can or should continue to operate in the longer run (eg.<br />

availability of spare parts; sufficiency of safety regulations;<br />

appropriateness to local capabilities for operation and<br />

maintenance).<br />

• Institutional and management capacity – the ability and<br />

willingness of the implementing agencies to continue to deliver<br />

project services beyond the period of donor support.<br />

• Economic and financial viability – whether the incremental<br />

benefits of the project outweigh its costs, and the project represents<br />

a viable long-term investment. 4<br />

• Socio-cultural and gender issues affecting motivation and<br />

participation – the extent to which the needs of all beneficiary<br />

groups will be addressed by the project and the effect this will have<br />

on the distribution of benefits in the longer term. 5<br />

• Environmental protection – the extent to which the project will<br />

preserve or damage the ecological environment and therefore<br />

support or undermine achievement of longer term benefits. 6<br />

These factors are assessed in terms of their probability and<br />

significance in the same way as external factors (using the algorithm),<br />

either being discarded as unimportant, included as assumptions in the<br />

4<br />

The Financial and Economic Analysis Manual (EC 1997) provides a comprehensive methodology to be used at<br />

the different phases of the project cycle.<br />

5<br />

The most common tool for integrating environment into the different phases of the project cycle is the<br />

Environment Impact Assessment (EIA). In DG 1B, the EIA procedures are described in the EIA Guidance Note.<br />

In DG VIII, the procedures are outlined in the Environment Manual. Currently, these procedures are being<br />

revised and harmonised to be integrated in a new Environment Integration Manual.<br />

6<br />

Further materials can be requested from the Gender & Development Desks in DG 1B (Gender In Development<br />

Manual, 1992; Gender Impact Assessment – GIA- Procedures and Guidelines) and DGVIII (Gender and <strong>Project</strong><br />

<strong>Cycle</strong> <strong>Management</strong>, Notes on Gender & Development, Standard Format for <strong>Project</strong> Identification).<br />

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