1. Project Identification
1.1 Introduction
Project identification is the first stage in defining a potential project. Potential projects may be identified by a number of sources such as:
• National, regional or district development plans
• HMG/N or donor assisted studies
• Requests from local bodies
• Requests from legislators, citizens groups and the private sector.
Regardless of how a project is first suggested, the concerned sectoral agency should conduct a pre-feasibility study, social assessment and environmental screening of the project, including options. These studies determine if the potential project is consistent with sectoral priorities and plans and satisfies target group needs in the project area. These studies shall be completed before a project is proposed for inclusion in the annual budget, and before incurring the higher cost and level of effort required in detailed project preparation.
The pre-feasibility identification stage provides the following information:
1. Broad objectives and scope of the potential project.
2. Potential issues or problems relating to organisation, management, finance, institutions and marketing aspects that need to be addressed in detail during project preparation.
3. Findings and recommendations of initial social and environmental assessments.
4. Initial assessment of the project viability and recommendations for proceeding with feasibility studies and full social-environmental assessments in the project preparation stage.
The concerned ministry shall decide if and how to proceed based on this information.
1.2 Central Level, District Level and Local Body Projects
The project identification process for central level, district level and local level projects is illustrated in Figure 1.1.
Responsibility for central level projects lies with the concerned sectoral ministry or department and the planning process is primarily a ‘top down’ process starting with national sectoral plans and priorities, although the needs of target groups must be carefully considered.
In contrast, the identification of district level and local body projects follows a participatory district development planning process which is a ‘bottom up’ process beginning at the household and Ward Committee level in each VDC.
1.3 Central Level Projects
1.3.1 Sector Strategic Plan
Identification of a national project should start with a sector strategic plan, also termed a master plan. Each sectoral agency is responsible for the preparation of a strategic plan for its sector. This plan has as its starting point the national objectives, policies and priorities of each sector established by the government and the NPC. A technical study that includes data gathering and consultations with the regional/division/district personnel of various line agencies as well as the DDCs is conducted and the results used to develop the sector strategic plan. The plan shows the development of sector infrastructure over a five- or ten-year period (mid term to long term). The plan will consider population growth and distribution, economic activity, needs of remote areas, national priorities, and level-of-service guidelines in the sector.
The plan may be prepared by sectoral agency or by consultants. The concerned ministry and the NPC will review the plan and give their approval.
1.3.2 Pre-Feasibility Project Identification
Following approval of the sector strategic plan, the sectoral agency carries out further pre-feasibility identification studies to select projects to go forward to the project preparation stage. The project identification process is described in Section 1.5 below.
1.3.3 Sector Multi-Year Programme
Once a series of potential projects are identified the line agency department prepares a multi-year programme spanning the short or medium term (e.g. five years). This programme is essentially a list of potential projects with order-of-magnitude cost estimates which will be subject of more detailed feasibility studies before approval for implementation is given. Feasibility studies are described in Chapter 2.
1.3.4 Inclusion of Projects Proposed by Local Bodies
Sector plans and programmes are not entirely based on the top down approach described above. Projects requested by local bodies may be included in the sector plan if the pre-feasibility assessment shows them to be viable.
Figure 1.1 Project Identification Process
