MANUAL FOR DEVELOPMENT PROJECTS

1 MANUAL . FOR. DEVELOPMENT PROJECTS . (Revised 2019). IDENTIFICATION, PREPARATION, APPRAISAL, APPROVAL, IMPLEMENTATION, MONITORING AND EVALUATION. _____. MINISTRY OF PLANNING, DEVELOPMENT AND REFORM. GOVERNMENT OF PAKISTAN. ISLAMABAD. vi Table of Contents Abbreviations and Acronyms Drafting Committee Forward Chapter-1 1-7. DEVELOPMENT 1. National Planning Board .. 1. Planning Commission .. 2. Chapter-2 9-13. National Economic Council (NEC) .. 9. Executive Committee of the NEC .. 9. Central DEVELOPMENT Working Party .. 10. Departmental DEVELOPMENT Working Party .. 10. Functions of Federal Level DDWP .. 11. Procedure for Approval of Schemes by Federal Level DDWP .. 11. Developmental Working Party (DWP autonomous organisations).. 13. Chapter-3 15-19. Planning and DEVELOPMENT Boards or Departments .. 15. Punjab .. 15. i. Planning and DEVELOPMENT Board.

2 15. ii. Provincial DEVELOPMENT Working Party .15. iii. Departmental DEVELOPMENT Sub-Committees .16. Sindh .. 16. i. Planning and DEVELOPMENT Board .16. ii. Provincial DEVELOPMENT Working Party .16. iii. Departmental DEVELOPMENT Working Party ..17. Balochistan .. 17. i. Planning and DEVELOPMENT Department..17. ii. Approval process of DEVELOPMENT Schemes ..17. iii. Provincial DEVELOPMENT Working Party .18. iv. Departmental DEVELOPMENT Sub-Committees .18. Khyber 18. i. Approval process of DEVELOPMENT Schemes .18. ii. Provincial DEVELOPMENT Working Party .18. iii. Departmental DEVELOPMENT Working Party 19. Special Areas 19. Chapter-4 21-23. Project Management Life Cycle .. 22. i International Associations of Project 23. International Standards of Project Management .. 23. Chapter-5 25-30. Project identification .. 25. Strategic planning.

3 25. Project strategic 25. Vision .. 25. Plan priorities and plan 26. Five Year 26. Annual Plan .. 27. DEVELOPMENT Programme outlay .. 27. Modes of financing .. 27. Public Sector DEVELOPMENT Programme .. 28. Public-Private Partnership .. 28. Viability Gap 29. Authorization of PSDP funds .. 29. PSDP review meetings .. 30. Chapter-6 31-38. Document format for project preparation .. 31. Key components of the PC-I and PC-II .. 31. Feasibility study .. 31. Linking PROJECTS to 32. Objective and purpose .. 32. Location, area and population coverage .. 32. Project description .. 33. Project scope .. 33. Change in scope of PROJECTS .. 33. Cost estimates .. 34. Revised cost estimates .. 34. Financial phasing .. 35. Physical scheduling of activities .. 35. Period of implementation .. 35. Extension in the period of execution .. 36.

4 Appointment of consultants for project preparation, detailed designing and tender documents .. 36. Quality Assurance .. 36. Project benefits .. 37. Inter-agency coordination and stakeholder consultation .. 37. Management structure .. 37. ii Chapter-7 39-41. Role of appraisal in project planning process .. 39. Concept of project appraisal .. 40. Discount 40. Risk 41. Risk Assessment and Management Planning .. 41. Chapter-8 43-47. Technical Approval .. 43. Procedure for meetings of various forums .. 43. Pre-CDWP meeting .. 44. Anticipatory approval .. 44. Issuance of authorisation .. 44. Concept Clearance of PROJECTS for foreign aid negotiations (federal and provincial) .. 45. Chapter-9 49-53. The role of sponsoring, executing and implementing 49. Appointment and role of the Project Director .. 49. Procedure and process of appointment of the Project Director.

5 49. Mode of appointment .. 50. Qualification and experience requirement .. 50. Terms of Reference or specific tasks to be accomplished by the Project Director .. 51. Selection and appointment committee .. 51. Project Management Unit .. 52. Contract award and contract management .. 52. Contracts during different phases of 52. Chapter-10 55-62. Role in the project cycle .. 55. Methods of monitoring .. 55. Project Monitoring and Evaluation System .. 57. PMES objectives .. 58. PMES statistics .. 59. Data Flow Mechanism in PMES .. 60. Components of PMES .. 61. Executive dashboard .. 61. Chapter-11 63-64. Purpose of 63. iii Types of evaluation .. 63. Method of evaluation .. 64. Chapter-12 65-67. Completed or closed project .. 65. Operational closure .. 65. Financial closure .. 66. Responsibility for project closure .. 66.

6 Basic procedures and checklist for project closure .. 66. List of Annexes 69-70. Annexures 71-179. Appendix-I 183-233. PC-I for New PROJECTS ..183-205. PC-I for Revised PC-II Proforma ..213-216. PC-III Proforma ..217-226. PC-IV Proforma ..227-234. PC-V Proforma ..235-239. Appendix-II 243-244. iv Abbreviations and Acronyms ADP Annual DEVELOPMENT Programme AMCs Asset Management Companies APCC Annual Plan Coordination Committee CCI Council of Common Interests CDWP Central DEVELOPMENT Working Party CCP Competition Commission of Pakistan FDI Foreign Direct Investment FEG Framework for Economic Growth FRDL Fiscal Responsibility and Debt Limitation GCI General Cognitive Index GDP Gross Domestic Product GNP Gross National Product GPI Gender Parity Index ICT Information and Communication Technology/Islamabad Capital Territory IMF International Monetary Fund M/o Ministry of Planning, DEVELOPMENT and Reform PD&R.

7 MoIPC Ministry of Inter-Provincial Coordination MDGs Millennium DEVELOPMENT Goals NDA Net Domestic Assets NEC National Economic Council NHSR&C Ministry of National Health Services, Regulations and Coordination PCRET Pakistan Council for Renewable Energy Technologies PCRWR Pakistan Council of Research in Water Resources PDHS Pakistan Demographic and Health Survey PNAC Pakistan National Accreditation Council PFMA Public Finances Management Act 2019. PSDP Public Sector DEVELOPMENT Programme PSEs Public Sector Enterprises SDGs Sustainable DEVELOPMENT Goals SROs Statutory Regulatory Orders STPF Strategic Trade Policy Framework TDS Tariff Differential Subsidy v vi Drafting Committee Sr. Name Designation Committee No. 1. Muhammad Asif Sheikh Advisor ( DEVELOPMENT Budget) Chairman 2. Malik Ahmed Khan Member (Infra & RC) Member 3.

8 Rai Nasir Ali Khan Joint Chief Economist (Macro) Member 4. Muhammad Salim Khattak Chief (Economic Appraisal) Member 5. Mr. Javed Sikandar Chief (Governance) Member 6. Mr. Shaokat Ali Anwer Joint Economic adviser , Member Randhawa Finance Division 7. Mr. Asif Khan Deputy Chief (PIA Section) Member 8. Dr. Saleem Mohsan, Deputy Chief (Plan Coord) Member 9. Dr. Muhammad Ali Noor DG, PPMI Member 10. Muhammad Jamil Deputy Director (Infra) Member/. Secretary vii viii Foreword This MANUAL provides knowledge and guidelines about managing DEVELOPMENT PROJECTS implemented under the public sector DEVELOPMENT programme. The readers will have an overview of project cycle, including project identification, appraisal, approval, monitoring, closing and evaluation of DEVELOPMENT PROJECTS and other standard activities involved in the project management.

9 Besides providing guidance to the project sponsoring and implementing agencies, the document gives an authentic compilation of Government instructions on various aspects of DEVELOPMENT project directors, consultants and other project officials, sanctioning powers of various project approving forums etc. Project formulation forms have also been revised specially to include impact of climate change, disaster risk management and to encourage involvement of private sector in project financing. Every effort has been made to compile and present all the latest instructions involved in project management for providing a better understanding of project implementation and supervision for achieving planned objectives, resolving problems as they arise during implementation stage and revision of PROJECTS as a result of changed circumstances encountered during implementation necessitating change in the cost and scope of the project.

10 It is expected that the MANUAL which has been revised after almost 20 years, would help the project authorities and executing agencies to achieve efficiency and economy through proper utilization of resources to ensure output and outcome. All the officials of the Planning Commission involved in preparation of this MANUAL deserve appreciation for accomplishing this task in particular the efforts of drafting committee constituted for this purpose. Zafar Hasan Secretary November, 2019. ix Chapter-1. PLANNING MACHINERY AT FEDERAL LEVEL. Planning Commission of Pakistan is an apex body and a think tank for the government in the fields of economic planning and DEVELOPMENT . This has been evolved through different phases. The chronology of evolution of the planning machinery at the federal level has been elaborated below. DEVELOPMENT Board Despite grave economic and financial problems, which beset the Government of Pakistan soon after the independence, a DEVELOPMENT Board was established in 1948 in Economic Affairs Division to deal with the economic DEVELOPMENT of the country.