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Financial Management and Analysis of Projects :
2. User Instructions
2.6. Step 1: Identification and Early Preparation
2.6.1.
When compared with the needs of its borrowing
members, ADB resources are limited. Consequently, projects are selected
carefully. Before any project is identified for ADB financing, ADB
staff review a country's economy, particularly its national and
sectoral development programs, and determine the prospects for its
success. Country programming missions visit DMCs regularly to discuss
topics of mutual interest with government officials and select suitable
projects for ADB assistance.
2.6.2. Since the levels of economic
growth, and the priorities for development vary from one DMC to
another, ADB tries to select those projects which will most effectively
contribute to the economic and social development of the country
concerned, in conformity with the country and ADB strategies.
2.6.3. Once it is confirmed that the
project investment is justified, ADB evaluates the project. In some
cases, especially in the smaller and less-developed DMCs, project
identification may require the help of outside experts. If so, ADB
can provide technical assistance to a DMC to help it identify and
prepare a project for possible ADB financing. The following table
identifies relevant activities during project identification and
early project preparation.
| Activity |
Responsibilitya |
Project Typeb |
| Consultants and/ or Financial Analyst |
Executing Agency |
General |
Non-Revenue- Earning |
Revenue-Earning |
Private Sector |
Financial Institution |
- If project is not identified in the Country Strategy and Program (CSP), then Concept Paper is prepared for Management approval
|
 |
… |
… |
… |
… |
… |
… |
|
... |
… |
3.2 |
… |
… |
… |
… |
- Begin preparing forecasts
|
|
|
3.4.1 |
… |
… |
… |
… |
- Inform borrowers of ADB accounting and auditing requirements
|
|
… |
5.3 |
… |
… |
… |
… |
- Undertake preliminary consideration of EA/IA financial policies and financial management systems (OM G2 [Identify unacceptable arrangements]
|
|
… |
4.2.1, 4.2.4, 4.2.4.4, 4.2.6 |
4.2.9 |
4.2.8 |
4.2.8 |
6.2, 6.3 |
- Review accounting and auditing arrangements
|
|
… |
5.2, 5.3, 5.4 |
… |
… |
… |
… |
- Review earlier ADB reviews of, and World Bank certification of, Executing and Implementing Agencies
|
|
… |
4.1 |
… |
… |
… |
… |
- Consider the information requirements to support financial analyses
|
|
… |
4.3 |
… |
… |
… |
6.4 |
- Where available, review Country Diagnostic Study of Accounting and Auditing (DSAA)
|
|
… |
4.2.5 |
… |
… |
… |
… |
- Identify consulting requirements for institutional strengthening
|
|
… |
2.3, 4.2.2 |
… |
… |
… |
… |
- Financial Analyst's responsibilities during project appraisal
|
|
… |
4.2.4.2 |
… |
… |
… |
… |
- Project Preparation Report
|
|
… |
3.7.2 |
… |
… |
… |
… |
- Ensure that PPTA TORs reflect financial management needs
|
|
… |
3.7.2 |
… |
… |
… |
… |
a
A ""
identifies who has the key responsibility each step. "..." indicates
"not applicable".
b
The section
number where the requirements and related guidance can be located is provided
in the table. "..." indicates that no information is available, or that
the general requirements apply to the project type.
EA = executing agency, IA = implementing agency, PPTA = project preparatory technical
assistance, TOR = terms of reference
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2.5. Overview of Project Processing Steps | Next
2.7. Step 2: Loan Preparation |
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