PRESENTATION ON NDPIII PIP PREPARATION By Project Development

PRESENTATION ON NDPIII PIP PREPARATION By Project Development and Investment Planning Unit - NPA MAY, 2019 1

Presentation outline 1. Introduction 2. Challenges for project identification 3. Rationale and Purpose of the PIP 4. Objectives of the PIP 5. Key important steps 6. Guidelines and methodology 2

Introduction 1. The National Planning Authority (NPA) is charged with Project identification which is an initial stage of the Public Investment Management System (PIMS). 2. In particular, NPA produces the National Development Plan (NDP) Projects Investment Plan (PIP) as part of each NDP. 3. NPA’s role was also include review of projects prior to loan financing, supporting Private Sector Investment; and M&E of public projects 4. Over the years, NPA has been preparing the NDP PIP albeit with some gaps many of which were transcending to project preparation and implementation a) Most projects were just ideas and thus no clear direction b) There were no clear annual progress targets hence challenging tracking of performance especially during COC processes c) Sectors continued to prioritise other projects outside the PIP 3

Challenges for Project Identification 1. The development of the PIP is thus NPA’s principle role within the PIMs process to support implementation planning yet this role still has a number of challenges. 4 a) Identification of new projects that are not in the NDP (This distorts prioritization & Macro frame) b) Inadequate analysis prior to project identification by sectors c) Volatility in project concept generation d) Duplication and change of names of earlier implemented projects e) Availability of financing driven projects, especially from development partners f) Attempt to secure project loans before adequate project preparation g) Identification of projects that suit other mandates h) Categorizing recurrent items as projects with an aim of securing financing i) Submission of recurrent items as projects for entry into the MFPED PIP

Rationale and Purpose of the PIP 1. The overall purpose of preparing the NDPIII PIP is to entrench NPA’s development planning role of guiding project identification and preparation within PIMS. 2. The PIP will also guide NPA’s implementation planning role through helping to track performance within the agreed project performance targets (e. g. through Co. C) 3. The existing NDPII PIP contains profiles for sector projects but these require enormous preparation work to make them bankable. 5

Objectives 1. Improve the prioritization, screening, sequencing and selection of projects. 2. Support the preparation of pre-feasibility studies for the core-projects as a way to stimulate timely implementation. 3. Provide indicative costs for projects and thus inform the multiyear budgeting of projects. 4. Support the development of a databank for all NDPIII and 10 -Year NDP projects and project ideas. 5. Increase capacity building in preparation of project documents at NPA and increase relevance of NPA Sector officers during implementation planning. 6

Key Important Steps for Identification of a project 1. 2. 3. 4. 5. 6. 7. Step 1 – Analyze all projects undertaken by the sector since NDPI period (FY 2010/11) Step 2 – Identify conflicts of interest/situational influences Step 3 – Conduct project consultations Step 4 – Determine the project name Step 5 – Prepare the project idea using guidance provided by NPA Step 6 – Classify project outputs into recurrent and capital Step 7 – Prepare the Project using National guidelines (DC Guidelines) 7

Guidelines and Methodology 1. Detailed guidelines and templates have been developed to guide preparation of the PIP 2. It is desirable that all new NDPIII projects are developed upto pre-feasibility study stage especially core projects since they also inform the NDP macro frame. 3. Other new sector level projects may require full project profiles for admission but detailed studies be complete in the first year of the NDP. 120519 COPY OF THE STRUCTURE OF THE NDP PIP. xlsx NDPIII PP LEGISLATURE SECTOR. doc 8

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