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Course Contents: (Diploma Multilateral
Institutions)
- The International Development Project Cycle.
- In-depth review of Project Cycle Management (PCM) and the Logical Framework
Approach (LFA) and its Phases and Documents.
- Project Identification and its Tools.
- Project Formulation or Appraisal and its Tools.
- Project Description or “Fiches” and Drafting Terms of Reference or
Statements of Work.
- Project Implementation, Monitoring and Evaluation.
- Fundamentals of Financial and Economic Analysis (ECO-FIN) and other
Methodologies of Financial Appraisal.
- Conclusions and Review.
Objectives
- Knowing all terminology relating to projects of the different
Multilateral Funding Institutions.
- Carrying out a general analysis of EC Management Cycle and
identifying projects tools.
- Controlling all issues of Logical Framework: indicators, means of
verification, hypotheses and risk analysis.
- Carrying out an Economic and Financial Analysis (Eco-Fin).
Summary
The International Development Project Cycle. Project Cycle Management (PCM) and the Logical Framework Approach (LFA). Phases and Documents. Formulation or Appraisal. Drafting Terms. Implementation, Monitoring and Evaluation. ECOFIN.
In this module we will study the Logical Framework Approach (LFA) and the
Project Cycle Management (PCM) 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) as complement to these previously described tools.
The EC takes part in Development Cooperation (external actions) by means of
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.
- The second and third columns are the indicators and the important means of
verification for monitoring and assessing and belong to the so-called Horizontal
Logic.
- The fourth column: Hypotheses or Assumptions, are the external factors,
which have power to influence in the success of project, but are outside the
direct control of project management. They belong to the so-called Vertical
Logic.
For the project identification we will consider the following stages:
- Stakeholders analysis.
- Problems analysis.
- Objectives analysis.
- Strategies / alternatives analysis.
- Description of Project and schedule, budget, risks, etc.
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, etc.). This is done by
means of Cost-Benefit Analysis or Cost-Effectiveness Analysis, depending of
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, etc. )
Available Languages:  
Project Cycle Management, PCM, Logical Framework Approach, LFA, International Development, Phases, Documents, Formulation, Appraisal, Drafting Terms, Implementation, Monitoring, Evaluation, ECOFIN
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