Comprehensive appraisal and need of proposal

Necessity of comprehensive appraisal

Project appraisal is the critical, systematic assessment of a proposed project, before commitment of funds, to judge whether it is technically sound, economically and financially viable, environmentally and socially acceptable, and worth undertaking.

It is needed because formulation alone only presents the promoter's view. A comprehensive appraisal checks every aspect of the project, and so it:

• Helps decide whether to accept, modify or reject a project (go or no-go).
• Avoids wasting scarce capital on unviable projects.
• Compares alternatives and ranks projects for limited funds.
• Finds risks and weaknesses early, when changes are cheap.
• Checks that the technical design, cost and schedule are realistic.
• Ensures economic benefit to the nation and acceptable environmental and social effects.
• Gives lenders and donors confidence; it is usually a condition for financing.
• Provides a baseline for later monitoring and evaluation.

Necessity of a project proposal

A good proposal is the main document by which a project is accepted and financed, so its essence is:

• Clear need and objectives: shows exactly what problem is solved.
• Convincing technical approach: proves that the proposer understands the work and can do it.
• Realistic cost and schedule: neither inflated nor unrealistically low.
• Evidence of capacity: experience, staff, equipment, past performance.
• Benefits and risks stated honestly.
• Clarity, brevity and good structure: easy to read and evaluate.
• Compliance with the terms of reference, format and rules of the client.
• Basis for contract and control: once accepted, it becomes the baseline for the scope, time and cost of the project.

Contents the proposal must have:

1. Title, summary and background of the project.
2. Problem statement and need (justification).
3. Goal and objectives.
4. Scope and expected outputs.
5. Methodology and technical design.
6. Work plan and time schedule.
7. Organisation, management and staffing.
8. Budget and financing plan.
9. Benefits: economic, social, environmental.
10. Risks and mitigation.
11. Monitoring and evaluation plan, sustainability.
12. Annexes: maps, drawings, data, CVs.