ESMF

 

1. Project Identification

1.1 Introduction
Project identification is the first stage in defining a potential project. Potential projects may be dentified 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 re-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.

Figure 1.1 Project Identification Process

 

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 prefeasibility 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 multiyear 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.

1.4 District Level and Local Body Projects

1.4.1 Participatory District Development Planning Process

The district is the main sub-unit of administration in the country. The development of district plans is important because the district is small and is in direct communication with the people and government employees. The district is also the key link in the aggregation of data and targets between local communities and the national level. The Local Self Governance Act 1999 prescribes a bottom up planning process where needs are identified starting at the level of household and Ward Committee. These needs are combined at the district level into an Integrated District Development Plan and then into national level plans.

The district is itself an aggregate of small administrative divisions: Ilakas (areas in a district), VDCs and Wards, each having their individual requirements and priorities. For this reason the focus of project identification starts at the Ward level.

1.4.2 Integrated District Development Plan

The District Plan Formulation Committee of the DDC (as shown in Figure 1.1) is responsible for scrutinizing the requests and needs of the VDCs and Ward Committees and then preparing an Integrated District Development Plan (Annual Plan). The Committee comprises personnel from the DDC and district offices of the sectoral ministries and departments.

Preparation of the plan takes account of sector priorities and budget guidelines issued by the NPC and the sectoral ministries. Preparation of the plan is essentially a simplified project identification process.

1.4.3 District Level and Local Body Projects

Projects included in the Integrated District Development Plan may be implemented either as a district level project by the sectoral agency or as a local body project by the DDC or VDC. A decision is made jointly by the sectoral agency, DDC and NPC.

Further details of the Participatory District Development Planning Process are given in Part II, Chapter 17.

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).