ABH / Dienst "Multilaterale Instellingen & Internationale Projecten"

Phases of the Project cycle

I - Identification is the first phase of the project cycle and can come from several sources, including Bank identification and private sponsors in some cases.

II - Preparation begins where there is mutual agreement on project objectives. It entails developing an idea into a detailed proposal that considers all aspects (technical, economic, financial, social and institutional) of the project.

III - Appraisal The Bank reviews the proposals and undertakes a full-scale project appraisal. It is conducted by Bank staff, sometimes supplemented by outside consultants. During this stage, the types of products and equipment are identified and the procurement procedures are spelled out. The financial plan is also examined.

IV - Negociations - Loan Agreements Formal loan negociations can start beween the Bank and the borrower. Both sides discuss the conditions necessary to ensure the projects' success and establish the loan documents. This documents are afterwards submitted to the executive Directors of the Bank for approval.

V - Implementation / Supervision After the loan is approved,funds are available to implement the project and purchase the items, equipment and works needed. In this stage of the project, tenders may be organised.

VI - Evaluation The project is already completed and will now be evaluated, sometimes in collaboration with consulting firms.

Remarks

The most interesting phases are the phases I, II, III and VI for consulting firms whereas the stages IV and V for contractors and suppliers although it is indicated that contractors and suppliers make direct contacts already in the earlier stages of the project.