A pragmatic approach to the planning of crop development projects in less developed countries with particular reference to the procurement of goods and services and the calculation of benefits and costs

Abstract

Given an economic and sector planning and policy background, a crop development project is postulated, to be funded by a government and an international donor agency. It is recognised that such projects will only succeed in a sound institutional and policy environment. Such an environment is examined, and a project is designed which overcomes perceived constraints. The achievement of donor loan effectiveness, and the procurement of required goods and services are reviewed. The assembly of data for the estimation of planned project benefits is the next consideration as the sizes and annual phasing of several project cost items will depend on when and at what rate project benefits are to be achieved. A checklist of project cost items is then presented. Project costs are assembled on a component basis. Within each component, costs are built up by category commencing with technical staffing; which to some extent determines the requirements for support staff, housing, office space, vehicles, and capital equipment. The provision of buildings, vehicles and equipment, and staff then determine levels of maintenance and repair, operating, and administrative recurrent costs. Pragmatic methods are advanced which could be used as a starting point for the estimation of such recurrent costs. Project costs may have to be rearranged to meet the particular needs of financing agencies. It is noted that the compilation of project costs with the aid of a personal computer spreadsheet program is useful in terms of the construction of cost tables, their rearrangement if required, and subsequent sensitivity analysis. The purposes and presentation of the project appraisal report are then considered.