Step 5: Annual Program
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.
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.
Figure 1.1 Project Identification Process