Manual for Development Projects (the manual) is one of the most sought after documents by professionals associated with public sector project management in Pakistan. The compilers have termed it as an achievement in furtherance of planning and development activities in the country.
Purpose of the Manual
The manual contains detailed description and analysis of various phases across generic life cycle of public sector projects in Pakistan. It chronicles and compiles relevant rules, orders, and instructions of Government of Pakistan, from time to time, across these phases.
In a way, it streamlines and presents overall planning and development framework in Pakistan. Furthermore, it is intended to serve as a guide to take on challenges faced across different project phases – preparation, appraisal, approval, implementation, monitoring, and evaluation.
It was well received by concerned organizations and their representatives. Furthermore, they benefited immensely from it. It is was aimed to serve as a guide for all those who are concerned with the public sector project development and implementation in Pakistan.
Evolution of the Manual
The manual has evolved significantly over time. First edition of the manual was published in 1991 by Projects Wing, Planning and Development Division, Government of Pakistan. Later on, it was revised, updated and published in May 1997. Over a very short time span it went out of print despite growing demand. Finally, the manual was renamed and transformed to Guidelines for Project Management and was published in August 2008 by Projects Wing, Planning Commission, Government of Pakistan.
Manual for Development Projects (Revised) 1997
Over here we are presenting the revised version (or second edition) of Manual for Development Projects which was published by Projects Wing, Planning and Development Division, Government of Pakistan in May, 1997.
Please note that the revised edition of the manual contains all revisions and changes made in the intructions, rules and procedural guidelines over time span of 1991 till February 1997.
A number of practitioners argue that though a number of individual elements of the manual may not reflect current situation, however, the overall framework remains intact. For example, like mentioned in the manual, we still have PC-I, II, III, IV and V. However, they have been updated.
Therefore, it is advised that readers may confirm currency of a particular element of the manual before it implementation.
Main Parts of Manual for Development Projects
The comprises of two parts.
- Part – I is the Main Text of the Manual and contains guidelines based on Government orders and instructions. It incorporates practical insigts gained over time. It comprises of ten chapters. The first chapter starts with review and chronicles of planning and development framework in Pakistan. Chapter 2 to 8 details the framework using project life cycle or span approach. The last two chapters are about Social Action and NGOs Support Programmes.
- Part – II is collection of Annexures. It comprises of a rich list of annexes that have been referred to in the main text of the manual. In certain cases, they serve as supporting or foundational material to the main text of the manual
Summary of Main Text of the Manual
Chapter 01 – Planning Machinery in Pakistan: The chapter portrays public sector planning and development framework in Pakistan. It focuses on evolution of Planning Machinery with specific emphasis on institutional or structural arrangements for managing development policies and its implementation through programmes and projects.
Chapter 02 – Project Identification: The chapter describes first phase of the prescribed project life cycle or span. It duly stresses on importance of fixation of priorities and formulation of feasible projects in the back drop of resources availability. Furthermore, it elaborates different potential sources for identification of projects in the public sector.
Chapter 03 – Feasibility Study: Selection of a sound project is critical to achievement of planned objectives for a particular sector. The chapter underscores this fact and discusses roles of feasibility studies in ensuring this. It also provides guidelines on preparation and processing of PC-II proforma required for conducting surveys and feasibility studies.
Chapter 04 – Project Preparation: The chapter focuses on preparation of public sector projects, especially issues and guidelines related to it at different levels. Project are prepared using a project document known as PC-I proforma. The chapter provides guidelines on individual elements of the proforma.
Chapter 05 – Project Appraisal: It is third phase of the project life cycle. The chapter provides an in-depth account of different aspects and types of appraisals. Specific emphasis is placed on finacial and economic appraisal. It also deliberates on different methods and techniques of appraisal. Example or practice statements are also included.
Chapter 06 – Project Approval: Normally, project approval is based on results of appraisal. The chapter discusses dynamics of project approval for different types of projects at different levels in Pakistan. It differentiates between different types of approvals. It also gives account of various approving bodies and their corresponding sanctioning powers.
Chapter 07 – Project Implementation and Monitoring: It is the fourth phase where you actually carry out the planned work. Issues discussed includes change in scope, delays, and scheduling techniques like PERT and CPM. The chapter depicts true role of monitoring and describes related concepts, methods & techniques, and quarterly progress reporting mechanism.
Chapter 08 – Project Evaluation: It is the final phase of project cycle. Evaluation is essential for improving effectiveness and efficiency of development expenditure. The chapter describes need and importance of evaluation, different types of evaluation, difference between monitoring and evaluation, requirements for undertaking and use of evaluation studies.
Chapter 09 – Social Action Programme (SAP): SAP was a national programme that aimed to strengthen basic social services. It promoted active involment and coordination of all stakeholders – national and provincial governments, NGOs, private sector, and communities. The chapter discusses design and implementation aspects of the programme in detail.
Chapter 10 – NGOs Support Programme: Recognizing the key supporting role of NGOs in socio-economic development and increasing interest shown by international donor community, necessitated the government to streamline foreign assistance programme to NGOs in the country. The chapter details specifics of Standing Committee on NGOs created for the purpose.
Table of Contents – Manual for Development Projects
Chapter 01 - Planning Machinery in Pakistan
|5.||Planning & Development Division|
|7.||Provincial Planning & Development Departments|
|a) Annual Plan|
|c) Five Year Plan|
|d) Perspective Plan|
|e) Public Sector Development Programme (PSDP)|
|– i) Federal Vs Provincial Projects|
|– ii) On-going Vs New Projects|
|– iii) Foreign-Aided Projects|
|9.||Transformation of Plan into Viable Projects/Programmes|
|10.||Definition of Project and its Contribution Towards Achievement of Overall Plan Goals/Objectives|
|11.||PC-I, II, Ill, IV, and V Proformae|
Chapter 02 - Project Identification
|1.||Sources of Project Identification|
|2.||Plan Priorities/Plan Documents|
|3.||Sectoral Analysis and Current Situation|
|4.||Special Policy Directives|
|5.||New Ideas/Areas of Investment|
Chapter 03 - Feasibility Study
|1.||Why Feasibility Study Needed|
|2.||Dimension of a Feasibility Study|
|3.||Preparation/Processing of PC-I I|
|4.||Appointment of Consultants|
Chapter 04 - Project Preparation
|2.||Linking Projects to Resources|
|3.||Location, Area and Population Coverage|
|5.||Project Objectives and Targets|
|6.||Change in Scope of Projects|
|8.||Revised Cost Estimates|
|11.||Physical Scheduling of Activities|
|12.||Period of Implementation|
|13.||Appointment of Consultants for Project Preparation, Detailed Designing and Tender Documents Economic Benefits|
|15.||Preparation of PC-I/Project Document|
Chapter 05 - Project Appraisal
|2.||Various Aspects of Appraisal|
|a) Technical Analysis|
|b) Institutional/Organizational/ Managerial Analysis|
|c) Social Analysis|
|d) Commercial Analysis|
|f) Financial Analysis|
|g) Economic Analysis|
|h) Pricing of Project Inputs and Output|
|i) Identifying Project Cost and Benefits|
|j) Appraisal Methods/Techniques|
|k) Pay Back Period|
|l) Value Added|
|m) Capital-Output Ratio|
|n) Proceeds per Unit of Outlay|
|o) Average Annual Proceeds Per Unit of Outlay|
|p) Discounting Techniques|
|q) Net Present Worth (NPW)|
|r) Benefit-Cost Ratio (BCR)|
|s) Internal Rate of Return (IRR)|
|t) Net Benefit-Investment Ratio (NBIR = NIK Ratio)|
|u) Sensitivity Analysis (Treatment of Uncertainty)|
|v) Choosing between Mutually Exclusive/ Alternate Projects|
|w) Domestic Resource Cost (Modified Bruno Ratio)|
Chapter 06 - Project Approval
|2.||Project Approving Bodies|
|3.||National Economic Council (NEC)|
|4.||Executive Committee of National Economic Council (ECNEC)|
|6.||Committee(ECC) of the Cabinet|
|7.||Central Development Working Party (CDWP)|
|8.||Departmental Development Working Party (DDWP)|
|9.||Provincial Development Working Party (PDWP)|
|10.||Sanctioning Powers of Approving Authorities|
|11.||Submission of Schemes to the Competent Authority|
|12.||Processing of Schemes Procedure for Meetings of Various Bodies|
|13.||Time Limit for Approval of Projects|
|15.||Anticipatory Approval of Communication Projects|
|16.||Issuance of Administrative Approval|
|17.||Concept Clearance for Foreign Aid Negotiation of Projects|
|18.||Public Private Partnership Projects|
Chapter 07 - Project Implementation and Monitoring
|1.||Project Management & Supervision|
|2.||Appointment of Project Director|
|3.||Increase in Scope of Work and Delay in Execution of Projects|
|4.||Project Execution/Supervision• Development of|
|5.||Management Information System (MIS)|
|7.||Steps in Project Formulation/Implementation|
|8.||Listing of Activities|
|9.||Acquisition of Land|
|10.||Tendering of Civil Works and|
|11.||Award of Contracts|
|12.||Procurement of Machinery & Equipment|
|14.||Foreign Procurement/Utilization of Foreign Aid|
|15.||Submission of Completion Report|
|16.||Project Review and Monitoring|
|17.||Progress on PC-Ill Proforma|
|18.||Progress Review by the Ministries/Divisions|
|19.||Projects Review Groups|
|20.||Review of Foreign Economic Assistance and Problematic Foreign Aided Projects by the (ECNEC) Committee|
|22.||Role in the Project Cycle|
|24.||Kinds of Monitoring-Internal Vs External|
|27.||Progress Monitoring Proformae|
|30.||Monitoring Methodology- Methods and Techniques|
|31.||Project Selection Criteria|
|32.||Collection of Monitoring Data|
|34.||Progress Monitoring Reports|
Chapter 08 - Project Evaluation
|2.||Purpose of Evaluation|
|3.||Types of Evaluation|
|4.||Difference between Monitoring and Evaluation|
|6.||Requirements for Undertaking an|
|8.||Feed-back for the Future|
Chapter 09 - Social Action Programme (SAP)
|4.||SAP Operational Secretariat in Ministry of Local Government and Rural Development|
|5.||Role of District Social Action Boards (DSABs)|
|6.||Processing of SAP Schemes|
|7.||Monitoring and Evaluation System|
|8.||SAP Disbursement Through Statement of Expenditure (SOES)|
|9.||SAP Procurement Procedures|
|10.||Accounts, Audit and Reporting System|
|11.||Releases of SAP Tied Funds|
|12.||Staff Appointment for SAP Sectors|
|13.||Exemption of SAP from Budget Cuts|
Chapter 10 - NGOs Support Programme
|3.||Procedure of Applying for Foreign Assistance|
|5.||Scrutiny & Approval of Project Proposals|
|6.||List of the Documents to be attached with the Application Form|