Subject: Project Cycle Management of Development Projects. Syllabus:
Subject Description (Project Cycle Management).
In this subject; we will study the Logical Framework Approach (LFA) and the Project Cycle Management of various institutions.
We will analyze everything relating to these public Project Management instruments, focusing on the differences and similarities of the different Multilateral Funding institutions, as well as in the economic financial analysis (Eco-Fin) a complement to these previously described tools.
The EC takes part in development cooperation (external actions) using three mechanisms: Direct support to projects, sector budget support, and macroeconomic support. Project support is carried with the methodology of Project Cycle Management. The graph below shows the stages and documents of this approach:
The Logical Framework Approach (LFA) is a series of techniques used for identifying the key problems and objectives that the project wants to address and project then proceeds to a detailed formulation of the project. It is also used for consulting and involving stakeholders as much as possible.
The Logical Framework Approach is an analytical process, as well as a series of tools to support planning and project management and monitoring. It allows information to be analyzed and organized according to its importance and then the project to be designed. Moreover; it allows to identify options or alternatives and support decision-making for allocating resources and activities.
The Logical Framework Matrix is the matrix-shape result and summary of these analyses of the project, and consists of four columns and four rows, which summarize the key elements of a project before, during and after executing (it is possible to change or keep still the matrix throughout the project).
- The first column of the Logical Framework Matrix describes that aspect of the level of the project; it is also known as Intervention Logic.
For the project identification we will consider the following stages:
- Stakeholders analysis.
Each of the steps inside of the Logical Framework Approach is important because they help us to define an aspect of the project and its future implementation.
Last but not least; we review the key concepts of Economic and Financial Analysis (Eco-Fin) of development projects, according to the European Commission external program. It focuses on the point of view of the institution or a Group of institutions (beneficiary, Target Group). This is done using Cost-Benefit Analysis or Cost-Effectiveness Analysis, depending on whether the benefits have an economic impact or not.
For carrying out the Economic and Financial Analysis (Eco-Fin); we need to imagine the parameters we want to analyze to a certain degree, and model the underlying economics of the sector and products/services. Furthermore; we need To understand the desired level of analysis and the "economic" certainty that key stakeholders or beneficiaries "will accept" (depending on their function, education and their role as Executive agency, EC Delegation or Washington or Brussels HQ offices).