IFAD’s project cycle is divided into
six phases:
1. Inception
2. Formulation
3. Appraisal
4. Negotiation
and approval
5. Implementation
6. Evaluation
1. Inception
The inception phase is the first step
towards formal inclusion in the project pipeline. In this phase, a
project proposal – based on the strategy outlined in the country
strategic opportunities paper (COSOP)
– is drawn up, indicating:
- initial
information on project objectives and rationale
- characteristics
of the project area and target group
- preliminary
identification of the main components, costs and financing
2. Formulation
The formulation phase is when a detailed
technical design is undertaken for the project. During this phase, IFAD
prepares a feasible, sustainable project proposal with the participation
of a range of stakeholders, most importantly potential beneficiaries and
governments. Additional studies may be undertaken in this phase, e.g. on
socio-economic characteristics of the target group or environmental
considerations.
IFAD and the government then review the
technical feasibility of the proposal and examine policy considerations.
3. Appraisal
During the appraisal phase, the project
design is fine-tuned under the guidance of IFAD’s technical/policy
review committees. An important part of this phase is the finalization
of implementation arrangements.
4. Negotiation and approval
Loan negotiations are undertaken between
IFAD and the borrower, using the project appraisal as the basis for the
financing (i.e. loan or grant) agreement. IFAD’s Executive Board then
reviews and – if it so deems – approves the IFAD loan/grant for the
project. The document submitted for Board approval (known as a
President’s Report and Recommendation) describes the key features of
the appraised project.
Subsequent to Board approval, the
financing agreement is signed between IFAD and the borrower.
5. Implementation
Implementation starts once the borrower
has fulfilled specified conditions allowing IFAD to declare the
loan/grant effective. IFAD-financed projects are implemented by national
staff with support and guidance from IFAD headquarters staff.
Loans and grants are supervised and
administered by the cooperating institution, except for 15 pilot
projects directly supervised by IFAD.
IFAD carries out regular portfolio
reviews as part of its portfolio management activities.
At the end of the implementation period,
IFAD prepares a completion report, with special emphasis on the
operation’s impact.
6. Evaluation
In April 2003, IFAD adopted a new
evaluation policy. The Office
of Evaluation is now independent and reports directly to IFAD’s
Executive Board.
Some 10 to 12 projects are evaluated each
year. These include evaluations for subsequent phases of a project, in
which case an interim evaluation is mandatory prior to formulation of a
new project.
The Office of Evaluation also conducts
corporate-level evaluations, country programme evaluations and thematic
evaluations.
The COSOP sets out a medium-term
strategic framework for IFAD’s country operations, laying the
foundation on which a monitorable country-level plan of action can be
pursued and new projects developed. It focuses on rural poverty and on
IFAD’s strategic role in the country, and examines internal and
external policy issues of major relevance to this context. Prepared in
consultation with government and other in-country stakeholders, it
identifies the main opportunities for innovation and project
interventions. In addition, the COSOP sets out IFAD’s strategy to
promote improved impact achievement and policy dialogue, and articulates
the relationship between the proposed interventions at the country level
and the Fund’s Strategic Framework and respective regional strategy.
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