A project is “a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget”. (Kiesel 2001) In reality? this simple definition covers an enormous variety of project types? in terms of size? aims? focus and methods. Nevertheless? there are many basic similarities. The 'project cycle' is a way of viewing the main elements that projects have in common? and how they relate to each other in sequence. (La Trobe 2005) The precise formulation of the cycle and its phases varies from one agency to another? but the basic components are shown in Figure 1 below.
Figure 1 The project cycle
Source: EC.
Manual: Project Cycle Management.
Brussels: European Commission? EuropeAid? 2001
Programming: The establishment of general guidelines and principles for cooperation? agreement of sectoral and thematic focus and outlining of broad ideas for projects and programmes. (Keipi 2005)
Identification: Within the programme framework? problems? needs and interests of possible stakeholders are analysed; ideas for projects and other actions are identified and screened. The outcome is a decision on whether or not the options developed should be studied in more detail. (Twigg 2004)
Appraisal (or preparation): All significant aspects of the idea are studied? taking into account stakeholders' views? relevance to problems? feasibility and other issues. Logical or results-based management frameworks? and activity and implementation schedules? are developed and the required inputs are calculated. The outcome is a decision to take the project forward? or not. (Gosling 2003) In some organisations' project cycles? this phase is described as 'preparation' or 'formulation'? the term 'appraisal' being applied more narrowly to a review of all the planning work to date and the resulting decision on whether or not to proceed.
Financing: A decision is taken by the relevant parties about whether or not to fund the project? based on the appraisal. Some project cycles refer to this stage as 'negotiation' or 'approval'? and it may involve both the implementing agency and other stakeholders. (Wamsler 2006)
Implementation: The agreed resources are used to carry out the planned activities and achieve objectives. Progress is assessed through monitoring to enable adjustment to changing circumstances. At the end of implementation? a decision should be made about whether to close or extend the project. (European 2004)
Evaluation: This assessment of the project's achievements and impact examines the relevance and fulfilment of objectives? efficiency? effectiveness? impact and sustainability. (Chang 1999) It leads to a decision to continue? change or stop a project? and its conclusions are taken into account when planning and implementing similar projects. (Chang 1999)
Most agencies adopt a 'project cycle management' approach: a sequence of actions to develop? implement and evaluate projects that leads in turn into new projects. The aim of project cycle management is to improve the management of projects (and programmes) by ensuring that all relevant issues and conditions are taken into account during design and implementation. (Wamsler 2006) In application? project cycle management consists of a set of design and management concepts? techniques and ...