1.5 Steps in Pre-Feasibility Project Identification

The steps in pre-feasibility project identification are similar whether the project is a central level, district level or local body project. The only difference is in the level of effort and detail. Project identification follows the same rationale as a feasibility study but at a more simplified level, requiring a lower cost and a shorter period of time.

Step 1. Project Identification Team
Project identification of central level projects shall be carried out by the planning unit of the concerned sectoral agency. Consultant assistance may be used where special technical expertise is required. At the district level, project identification shall be carried out jointly by the technical staff in the sector agency’s district office and staff of the DDC.

Step 2. Initial Definition of the Project
An initial description of the project shall be developed from the sector plan or from requests from the DDC, VDCs, political representatives or other sources.

Step 3. Use of Existing Data
Project identification should be based on existing data as much as possible in order to minimise cost. Data sources can include:
• Published topographical, geological, geotechnical and other engineering maps and data
• Published demographic and economic data
• Existing Integrated District Development Plans and district sector plans (e.g. District Transport Master Plans).
• Reports from previous studies and projects.

Step 4. Site Visit
A visit to the project site shall be made to investigate conditions in the project area. It should be made by all team members together so that they may jointly assess conditions. The visit will be used to supplement existing data sources by collecting locally available data and information through interviews with local agencies and stakeholders.

Step 5. Additional Data Collection
It may be necessary to collect more specific data (e.g. traffic data or demand for a new facility) but only if it is essential in determining if the project should proceed or not.

Step 6. Technical Assessment of Alternatives
This task involves a technical assessment of the target group needs, the physical conditions and social-environmental constraints in the project area. The intention is to generate technically feasible alternative project schemes. Guidelines for the analysis include:
• Use established sector-specific planning manuals, guidelines and technical standards
• Use existing mapping
• Generate as wide a range of alternatives as possible
• Use standard unit costs or rules of thumb to estimate costs
• Consult technical experts.

Step 7. Environmental Screening
Environmental screening shall be carried out to determine the level of environmental assessment IEE or EIA that will be required in the project preparation stage. Environmental screening normally involves evaluating the type of project and conditions in the project area using predetermined criteria. Screening criteria are available for some sectors.

Step 8. Initial Social Assessment
The initial social assessment shall review published information and information gained from the site visit to assess the project in terms of the following factors:
• Identification of user groups and other project-affected groups
• Impacts on local culture and cultural heritage
• Impact on local economic activities
• Poverty and labour issues
• Gender issues.
This assessment shall recommend if further social assessment work is required in the project preparation stage.

Step 9. Consultation with Other Agencies
Consultations shall held with other agencies who may be affected by the project or whose own plans may affect the project. This will include the planning divisions and district personnel of other sectoral agencies and the DDC/VDCs in the project area. It is important to communicate with these agencies and receive their views on the alternatives being considered.

Step 10. Institutional Requirements
The institutional aspects of the project shall be reviewed to identify which agency will operate and maintain the completed works. Their technical and financial capacity shall be assessed and recommendations made for further institutional studies that may be required in the project preparation stage.

Step 11. Benefits and Cost Estimates
The potential benefits and number of beneficiaries of the project shall be identified (e.g. number of users, households served, hectares affected, travel time or distance savings). Similarly, order-of-magnitude costs shall be estimated for each of the alternatives using standard rates, rules of thumb, or experience from similar projects. It is not required to carry out an economic analysis.

Step 12. Implementation Arrangements
The alternatives for implementing the project shall be reviewed to determine which agency will be responsible for the project and the sources of funding. It is necessary to decide if the project will be a district level or local body project. For a central level project, it may be necessary to identify potential donor interest.

Step 13. Report and Recommendation
A brief report shall be prepared outlining the findings of the investigations and making recommendations on the alternative(s) to be selected and the scope of work to be completed in the project preparation stage. The report should clearly describe all the requirements of FAR Schedule 4 "Basis for and Method of Project Approval" relating to FAR Rule 23(1).