Economic and Financial Principles

Changes in economic factors occurring between financing and implementation may require revision of the project. Therefore examine:

KEY ISSUES POSSIBLE RESPONSES
  • Have any factors changed that may result in the project not bringing about the intended economic benefits for any beneficiary group?
  • Identify the factors that may reduce economic benefit. Discuss these with relevant parties and modify project activities as required.

Identify the factors that may reduce economic benefit. Discuss these with relevant parties and modify project activities as required.

 

KEY ISSUES POSSIBLE RESPONSES
  • Are mechanisms intended to ensure cost recovery and the financial sustainability defined in the project being put in place?
  • Are monitoring procedures in place to determine the financial sustainability of the project?
  • Initiate discussions with government to ensure that necessary human, financial and physical resources are in place.
  • Strengthen training and capacity building concerning cost recovery procedures.
  • Ensure that all parties understand the data gathering and reporting procedures needed to facilitate cost recovery.

Coordination of fund contributions is essential to avoid wastage of resource and project delay. Therefore examine:

KEY ISSUES POSSIBLE RESPONSES
  • Are the sector coordination mechanisms to address systematic issues, such as project and programme coordination, on national scale in place?
  • Are contributions from the agreed sources been delivered as scheduled?
  • Are budget support mechanisms for flow of funds financial accounting in place?
  • Ensure all coordination actions are in place via e.g. workshops, appropriate meetings
  • Initiate meetings at an appropriate level.
  • Ensure all necessary budget support mechanisms are well functioning