Step 10. Identification of Institutional and Training Requirements

Apart from the technical and economic feasibility, the feasibility study shall assess institutional and training requirements. The following guidelines apply:

• The existing organisational structure, staffing, roles and responsibilities and O&M systems and budget of the owner of the completed works shall be assessed.
• The additional responsibility, O&M workload and budget requirement due to the proposed project shall be assessed.
• The requirement for additional staff, and their job responsibilities, to be employed either permanently for the operation of the new works, or temporarily for the duration of the project only shall be assessed.
• Training needs for existing staff and any additional staff shall be assessed.
• The availability of in-house, in-country or external sources to provide the necessary training shall be identified.
• The institutional strengthening and training component within the project shall be recommended.
• The cost of such training and institutional strengthening shall be estimated.
• A staffing plan during the project and for post-project O&M shall be recommended.

It is important that the timing of the institutional strengthening and training should match with the mplementation of the project to ensure that the training is fully utilised.

Step 11. Proposed Implementation Modalities

Implementation modalities include identification of the executing and implementing agencies, ormulation of the project management organisation and the powers and responsibilities elegated to each.

The role of the implementing agency shall be procurement and implementation of civil work ontracts, procurement of equipment, appointment and management of consultants and isbursement of loan proceeds. It shall be responsible for day-to-day management of project mplementation in conformance with prevailing HMG/N regulations, and the donor guidelines if pplicable. It shall liase with other government departments and local bodies in order to xpedite activities and decisions affecting project implementation.

The following guidelines shall apply while forming the project organisation:

• An assessment shall be made whether the project can be managed by the regular units in the implementing agency or whether a special project unit is needed.
• If institutional strengthening is deemed necessary, the project may include a coordination committee, and staff for institutional strengthening during project implementation.
• An inter-ministerial coordination committee may be needed to expedite decisions in projects which affect several sectors.
• The roles and responsibilities of each committee and project office shall be clearly defined.
• If other agencies such as local bodies, users’ committees and community based organisations are also involved, their specific roles and responsibilities should be clearly defined.
• The required reporting structure and format at each management level shall be identified.
• The required monitoring and evaluation, including donor appraisals and other reports shall be identified.
• The implementation modalities will include the following:

• Guidelines to be followed
• Method of procurement of consultant
• Method of procurement of goods and works
• Standard conditions of contract
• Particular conditions of contract
• Any other relaxation or concessions applicable to procurement of works and goods.

• The necessary powers to be delegated to the Employer’s and Engineer’s representatives for efficient day-to-day management of their works shall be identified.

Further guidelines are provided in Part I Chapter 5 Project Organisation.

Step 12. Proposed Funding Modalities

The feasibility study will also address the funding modalities where required. The following guidelines apply:

• In regular HMG/N projects, the procedures for budgeting, sanctioning, expending, bookkeeping, internal and final auditing will be as specified by the FAR.
• In priority (core) projects to be executed under HMG/N funding and donor-funded projects, specific procedures for budgeting, sanctioning and auditing may be proposed and implemented under the authority of HMG/N. The mechanism may consist of project oriented three-year rolling budgeting and expenditure instead of the annual budgeting mechanism.
• In donor-assisted projects, there may be matching HMG/N funding which shall be expended according to the financial procedures of HMG/N while the foreign loan shall be expended according the donor’s relevant disbursement procedures.
• In district level projects, specific procedures may be proposed for more efficient transfer of funds to the projects.
• The final audit by the Auditor General’s Office shall be considered as an independent financial audit even for donor funded projects.

Step 13. Assessment of Project Risks

Assessment of the project risks will be made for large projects under HMG/N funding and all rojects under donor funding. The major project risks are normally identified in the logical ramework analysis as “key assumptions”. The following guidelines apply:

• Internal risks shall be identified including delays and problems which may be caused by weak procedures in the executing and implementing agencies, or supporting HMG/N agencies.
• External risks shall be identified including disruptions, delays and unplanned cost increases due to weather, political disturbances, poor contractor and consultant performance and fuel prices.
• Risks shall be categorised as high, moderate, small or no risk. An estimate of the cost and time implications should be made for each identified risk.
• Recommendations should be made to mitigate the risks.

Step 14. Initial Implementation Plan and Schedule

An initial implementation plan and schedule shall be developed in consultation with the takeholders. The following contents are suggested:

• A summary of the project objectives and components.
• A Gantt chart showing key activities and milestones.
• The Gantt chart should identify dependencies. Where appropriate, a critical path network may be drawn showing the dependencies and identifying the critical path.
• The human, material and capital resources assigned to activities and their schedule.
• The implementation schedule should be designed with sufficient flexibility to accommodate delays in individual tasks without jeopardising the overall project objectives, funding constraints and completion date.
• The proposed organisational arrangements.
• A summary of proposed funding arrangements.
• The major recommendations on project implementation procedures.

The implementing agency will develop a more detailed implementation plan after the project has eceived approval and before proceeding with implementation. Guidelines for the preparation of his detailed plan are contained in Part II Chapter 6 Project Implementation Plan.