Philippine Institute of Environmental Planners

Maria Lourdes T. Munárriz, PhD, EnP

Introduction

Pre-investment Phase

Implementation Phase

Post Investment Phase

Examples:

Tourism Development Project

Agricultural Development Project

Content

Developers need to understand

planning process

Planners need to know how

developers do their job.

TWIN RELATIONSHIP

Pre-investment Phase

Implementation Phase

Post Investment

Phase

PROJECT DEVELOPMENT CYCLE NEDA

Project Identification

Project Preparation

Project Appraisal and Feasibility

PRE-INVESTMENT PHASE

Detailed Engineering Design

Project Implementation

IMPLEMENTATION PHASE

Project Operation

Ex-Post Project Evaluation or Monitoring

POST-INVESTMENT PHASE

Agricultural Tourism Commercial

Industrial Residential Mixed Use

Government Center

Academic Campus

Military

TYPES OF PROJECTS

PROJECT IDENTIFICATION

Existing development problems?

Development potentials?

Types of projects?

* Stakeholder consultation

Multifaceted ... involves a wide range of activities;

Counterparts: architects, planners, engineers, surveyors, inspectors, contractors, leasing agents, etc.

Legal and moral obligations;

Sustainability and social responsibility.

PROJECT IDENTIFICATION continued

PROJECT IDENTIFICATION continued

Sources (NEDA): Development Plans …

ex. Medium-Term Philippine Development Plan (MTPDP); Medium Term Public Investment Program (MTPIP)

By LGUs

Interest Groups and Beneficiaries

International Funding Agencies as catalyts for new projects

Elements of a project depends on its nature

Sociological studies … whether project fits into physical and social environment

Government policies and procedure that could influence the project

Ex. Irrigation project … policies on prices of inputs, agricultural products

PROJECT PREPARATION NEDA

PROJECT PREPARATION continued

Two General Steps Preparation of Feasibility Study –

to proceed or not to proceed

Detailed planning and analysis of feasible projects

PROJECT APPRAISAL AND FEASIBILITY

Project Feasibility Study

Project Appraisal

PROJECT FEASIBILITY NEDA

Feasibility Study includes:

Demand-and-supply or Market module

Technical or Engineering module

Manpower and Administrative Support module

Financial module

Economic module

Social module

Institutional module

Environmental module

PROJECT FEASIBILITY continued

Demand-and-supply or Market module Demand for goods/services and supply condition

to prevail during project

Technical or Engineering module Input parameters: construction, operations

Quantities and prices of inputs

Project period

PROJECT FEASIBILITY continued

Manpower and Administrative Support

module Manpower requirements for technical and

administrative

Supply and demand of manpower

Financial module Integration of financial and technical variables

Cashflow profile of project

PROJECT FEASIBILITY continued

Economic module Viability of project for the entire country …

whether its implementation will improve economic welfare;

Economic appraisal of project

Social module Project impacts on stakeholders … say, well-

being of particular groups in society.

Its evaluation is generally tied to the same factors that make up financial and economic appraisals.

PROJECT FEASIBILITY continued

Institutional module Management of different stages of project

If management is equipped to handle project

Proper utilization of local facilities

Incorporates government policies and procedures

Environmental module Projects impacts on the environment

Equipment to reduce/eliminate pollution from project

Diseconomies of scale

Cost of providing remedies

PROJECT APPRAISAL continued

Definition of Appraisal Ramon A. Cuervo

A systematic, analytical determination and recording of property facts, investments and values … based on ocular inspection and inventory of property by the appraiser;

It determines the monetary value, at a given time, of property rights encompassed in an ownership

ELEMENTS OF APPRAISAL Ramon A. Cuervo

Goes through a process;

According to a specific date;

Involves the factual data …

say, on Sales or Listings;

Analysis and presentation of data.

SOME APPRAISING CONSIDERATIONS Ramon A. Cuervo

Accuracy depends on availability of pertinent data, on

appraiser’s skills, competence and integrity… because as

valuation is an estimate, it may or may not be accurate.

Estimates may be transmitted orally or put in writing …

usually, it is in written form, supported by data and analysis.

Analysis is necessary because sellers normally look forward

to selling their properties at the highest price, while typical

buyers would bargain for the least price.

Market reactions between buyers and sellers.

FINANCIAL RESOURCES Magno

Owner’s Capital Developmental Loan from Bank Real Estate Investment Trust (REIT)

Funds from individual investors who are willing to support the project on a fixed rate of return on investment (ROI).

Build-Your-Own (BYO) Off-Setting of Services/Materials

Payment of construction supplies in finished units

Pre-Selling Proceeds … to augment funds for development

ENGINEERING DESIGN NEDA

Detailed engineering design of: Basic program

Allocation of tasks

Determining resources

Carrying out functions along with priorities

Preparing operating plans along with contingency plans

PROJECT IMPLEMENTATION NEDA

Implementation … a dynamic process Constant response to new problems or changes

that may affect the project outcome

Covers completion of construction activities and subsequent operations

PROJECT IMPLEMENTATION continued

Three Time Periods of Implementation Investment Period … major investments are

made

Development Period … building up of production capacity

Full Operation Period …

PROJECT IMPLEMENTATION continued

Roles of Project Manager Brings together a project team that will

coordinate with those involved in putting the project into operation … contractors, consultants, suppliers, etc.

Defines functions and responsibilities of each project management unit and key staff

Bears responsibility for project implementation

Monitors daily performance because implementation problems are faced

PROJECT IMPLEMENTATION continued

Evaluation Compare project’s predicted and actual

performance for the – Improvement in accuracy of evaluations

Development of operational technical techniques

To assess progress made

To draw initial conclusions for the management that was done

To recommend for the remaining implementation period.

PROJECT OPERATION NEDA

Full Operation of Project Completed physical construction

Completed development services

Expected project benefits begin to be generated

PROJECT OPERATION continued

Nearing project completion … Phasing out of activities

Handing over project to new operational administration

PROJECT OPERATION continued

Project completion … Winding down

Moving project personnel and equipment to other areas of operation

PROJECT MONITORING NEDA

Elements of success or failure are analysed; Project evaluation is necessary before any

follow-up project is planned; Administrative aspect of project is reviewed; Project performance audit should be

conducted; Re-estimation of project outcome based on

actual investment costs and updated costs of maintenance and operations.

EX-POST PROJECT EVALUATION NEDA

Project performance is assessed

Given a verdict on its overall contribution to development of country

Identifies variables that may have contributed to success or failure …

• Variables in design and implementation

Well-considered recommendations on how – • On-going projects may be modified

• Subsequent projects may be improved

END