BARRETO-DILLON 2010 Project Proposal and Concept Note.ppt

Example of Proposal and Concept Note

1. Project Proposal and Concept Note
Project Proposal and Concept Note
Leonellha Dillon-Barreto, seecon gmbh

2. Project Preparation and Financing
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Contents
1. Introduction to Projects in the Water and Sanitation Sector
1.1From Vision to Projects
1.2Definition of Project and the Project Cycle
2. Developing a Project Proposal and Concept Note
2.1Definition of Project Proposal and Concept Note
2.2Getting Ready to Start a Project
2.3Project Planning
2.4Writing a Concept Note
2.5Budget Allocation and Resources Planning
References

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1.1 From Vision to Projects
1. Introduction to Projects in the Water and Sanitation Sector
A vision is an agreed long term projection of what the local water resource and
sanitation situation will be ideally in 20 to 30 year’s time.
Once the vision of the community has been defined and a long-term strategy
has been written, strategic objectives should be agreed, which will provide a
framework for planning future actions.
Community’s
Vision

Long-term
Strategy

Strategic
Objectives
Objective 1
Objective 2
Objective 3
...
Objective N

Future
Planning
Project 1
Project 2
Project 3
...
Project N

SOURCE: PHILIP, R., ANTON, B., BONJEAN, M., BROMLEY, J., COX, D., SMITS, S., SULLIVAN, C. A., VAN NIEKERK, K.,
CHONGUIÇA, E., MONGGAE, F. , NYAGWAMBO, L., PULE, R., BERRAONDO LÓPEZ, M. (2008): Local Government and Integrated
Water Resources Management (IWRM) Part III: Engaging in IWRM – Practical Steps and Tools for Local Governments. Freiburg:
ICLEI European Secretariat GmbH.

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So, the aim of the project should be:
1. Introduction to Projects in the Water and Sanitation Sector
For instances:
Strategic Objectives
•To eradicate open defecation in
our town by 2015
• To increase the access to
improved sanitation facilities to
90% by 2020.
•To safely reuse 50% of treated
wastewater in agricultural fields
by 2020.

Actions to be taken:
Awareness raising campaign...
Demand creation & information
campaign
Construction of new toilet
facilities...
Construction of a treatment
plant...

achieving one or a defined number of strategic objectives and ultimately
the overall water and sanitation vision.
Project 1
Project 2

Projects may also be stand-alone initiatives, not necessarily integrated into a
programme, with several projects contributing to one overall goal.
... But we also have to consider that:

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A world of opportunities:
1. Introduction to Projects in the Water and Sanitation Sector
Projects vary in scale, purpose and duration. Ideally in our SSWM approach,
they are to be initiated with the participation of the community, but it also
may be generated within an NGO or a municipality.
Small projects require modest inputs and produce tangible outputs within a
relatively short timeframe. At the other extreme, projects may require
substantial financial resources and only generate benefits in the long term.
Despite the difference in scale and nature of projects, there are aspects of
sound project management that are universal.

SOURCE: L. Barreto Dillon

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1.2 Definition of Project and Project Cycle
1. Introduction to Projects in the Water and Sanitation Sector
Projects differ from standard business operational activities as they:
•Are distinctive in nature, not involving a repetitive process.
•Have a define time-plan, with a specified start and end dates to meet the
beneficiaries or funding agency’s requirements.
•Have an allocated budget, which should be spent to produce the
deliverables.
•Have limited resources, such as labour, material and equipment.
•Involve a risk, as there is a level of uncertainty whether the objectives will
be attained.

SOURCE: METHOD123 (2003): Project Management
Guidebook. URL: www.method123.com. [Accessed:
20.05.2010]
A project is a unique venture to produce a set of outputs
within clearly specified time, cost and quality constraints.

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The Project Cycle
1. Introduction to Projects in the Water and Sanitation Sector
I Identification: generation of the initial
project idea
II Definition and design: detailed design
of the project addressing technical and
operational aspects
III Proposal preparation, approval and
financing: writing the project proposal,
securing approval for implementation
and arranging sources of finance
IV Implementation: implementation of
project activities, with on-going checks
on progress and feedback
V Evaluation: periodic review of project
with feedback for next project cycle.

Five stages are typically identified in the project cycle:
In SSWM
Exploring
Demand Creation
Participatory Decision Making,
Analysis and Planning
Implementation
Ensuring Sustainability

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A project proposal is a detailed description of a series of activities aimed at
solving a certain problem.
SOURCE: NEBIU, B. (2002): Developing Skills of NGOs,
Project Proposal Writing. Szentendre: The Regional
Environmental Centre for Central and Eastern Europe.
The proposal should contain a detailed explanation of the:
• justification of the project;
• activities and implementation timeline;
• methodology; and
• human, material and financial resources required.
2.1 Definition of Project Proposal and Concept Note
2. Developing a Project Proposal and Concept Note

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2. Developing a Project Proposal and Concept Note
A concept note is a summary of a proposal containing a brief description of the
idea of the project and the objectives to be pursued.
Concept notes are prepare for:
some financing programs, funding agencies require a concept note before the
submission of a full proposal.
donors without a formal call for proposals.
2.1 Definition of Concept Note

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2. Developing a Project Proposal and Concept Note
Build a team for proposal development:
-Leader: coordinate all inputs and write core sections.
-Technical experts: brainstorming, give input in technical issues.
-Administrative staff: give accurate information related to budget.
Review carefully the Community Action Plan or the Vision Statement of the
Community.
Hold a kick-off meeting and share your ideas
Tips to start successfully your project writing:
Identify potential funding options
2.2 Getting Ready to Start a Project

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2.3 Project Planning: a part of the Project Design
2. Developing a Project Proposal and Concept Note
The project design is one phase of the project cycle. It consists of two elements:
• project planning (formulation of project elements); and
• project proposal writing (converting the plan into a project document).
Project design is a result of both project planning and the project proposal. Both
steps are essential to forming a solid project design.

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2.3 Project Planning: Developing a Project Idea
2. Developing a Project Proposal and Concept Note
In order to identify the project idea, different aspects have to be considered:
 Community vision of how the situation should be in a long term:

Desired
situation
Current
situation
gap
need
Project
Community needs assessment is a key step to project design, as it helps addressing
the problems of the targeted local community.
SOURCE: L. Barreto Dillon

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2. Developing a Project Proposal and Concept Note
Setting priorities:
out of all the goals to be achieved, priorities have to be set to decide which
project to carry out first. Priority problems falling into the scope of the
stakeholders, your organisation, the State policy and the donor shall be selected.

Actor/Problem Problem 1 Problem 2 Problem 3
Stakeholders 3 1 2
State 2 1 3
Donor 3 2 1
Organisation 2 3 1

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2. Developing a Project Proposal and Concept Note
Thematic area of the potential donor:
Each external funding agency, private donor and governmental office defines a set
of thematic areas for the funding activities in a period of time. It is important to
thoroughly read and understand the Guide for Applicants of the different
sponsoring programs, before you embark in a proposal preparation.

Your own capacity and experience:
As the development of a project proposal takes a lot of
efforts, it is better to concentrate in those areas in which
your organisation has the most experience with.

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2. Developing a Project Proposal and Concept Note
A problem is a negative undesired situation. It might create imbalance. It
requires adaptation with the social, economic, educational, health or
environmental conditions in the community.
2.3 Project Planning: Defining the Problem
When formulating the problem, you should
clearly specify:
1- Reasons
2- Results
3- Magnitude (number or percentage of
impacted persons)
4- Place of the problem
5- The impact of the problem on other
problems especially poverty
environment, women and unemployment.
Example:
•50% of the citizens of village (X)
suffer from the garbage
scattered everywhere in the
streets.
•100% of the citizens of village (z)
drink contaminated water.

SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal
Writing. Szentendre: The Regional Environmental Centre for Central and
Eastern Europe.

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2. Developing a Project Proposal and Concept Note
This means placing and organising the collected data and information in a logical
sequential easily understandable manner that breaks down the problem into
root and secondary causes; thus facilitates pinpointing the problem, the causes
and implications.
In order to do this, you should use the tool “Problem Tree Analysis”

Main Problem
Main and direct cause
Results from the problem
Indirect and secondary cause
Main and direct cause
Indirect and secondary cause
Results from the problem
2.3 Project Planning: Analysing the Problem
SOURCE: L. Barreto Dillon

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2. Developing a Project Proposal and Concept Note
Beneficiaries: are those who benefit from the project.

2.3 Project Planning: Defining Beneficiaries and Target Groups
Target Group: the groups which would be positively
affected by the project at the “goal level”. This might
include the team from the partner organisation.

Final Beneficiaries: are those who would benefit from the
project at the long run at the group or community level,
eg. Children, as a result of spending on health and
education; or consumers due to improving agricultural
production and marketing.
The project should provide a detailed description of the size and characteristics of
the beneficiaries, target groups and final beneficiaries of the project.
The criteria for target group analysis may be ethnic composition, gender, age, etc.

SOURCE: L. Barreto Dillon

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2. Developing a Project Proposal and Concept Note
It is a long term goal (mostly at the national level) this particular project
together with other projects contribute to its achievement

2.3 Project Planning: Defining the Goal of the Project
Tips for Setting a Project Goal
1. There should be only one goal per
project.
2. The goal should be connected to the
vision for development.
3. It is difficult or impossible to measure
the accomplishment of the goal using
measurable indicators, but it should be
possible to prove its merit and
contribution to the vision.

SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre:
The Regional Environmental Centre for Central and Eastern Europe.
Example:
•improving the quality of life in
the community Z

The goal is defined as
“it contributes to …”

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2. Developing a Project Proposal and Concept Note
2.3 Project Planning: Defining the Objectives of the Project
Characteristics:
•Specific
•Measurable
•Applicable
•Realistic
•Timely

The objectives should address the core problem in terms of the benefits to be
received by the project beneficiaries or target group as a direct result of the
project. Project objectives provide a more detailed breakdown of the project
goal. A project will likely have multiple objectives.

SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre:
The Regional Environmental Centre for Central and Eastern Europe.
Example:
•Increase the number of families
from village Z in quantity X who
live in a clean garbage-free
environment within Y years.
•Improve the water supply in
quantity X and quality Y for the
population of village Z in the next
N years.

Requirements of drafting
the project objective:
•percentages or figures
•place specified
•target group specified
•time-specific
•positive desired state

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2. Developing a Project Proposal and Concept Note
2.3 Project Planning: Defining the Results of the Project
An indicator is the signal
indicating the achievement of the set
goal. An indicator is used to judge the
level of success, it is mostly a figure,
percentage or ration. An indicator is the
unit measuring how far a certain result is
achieved using a benchmark or a standard,
yet it doesn’t demonstrate the trend or
the change. Example:
-Number of new water taps in the village
Results describe the services or products to be delivered to the intended
beneficiaries. This is what the project management is promising to deliver. The
results are more detailed than the objectives and the goal, and should be
possible to measure through the use of objective indicators.

SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre:
The Regional Environmental Centre for Central and Eastern Europe.
Example of Results:
•Increase number of families
living in a clean garbage-free
environment.
•Increased number of households
connected to the water supply
system; and
•Increased number of water taps
in the village.

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2. Developing a Project Proposal and Concept Note
2.3 Project Planning: Defining the Activities of the Project
Selection criteria of the activities:
1- Proper (practical): the organisation and the community have the financial,
administrative, and technical ability to carry out the planned project.
2- Acceptable: the activity should be acceptable to the community and official
bodies.
3- Effectiveness: it leads to achieving the aspired results.
4- Efficiency: the less the cost of the activity and the more the number of people
it serves, the better.
5- Sustainability: to continue throughout the period specified to reach the result
and solve the problem.
6- Has no negative impact on the environment.
The tasks to be undertaken to achieve the aspired results.

“Activities are defined using an
action verb in a present tense, eg.
Design, draw up, search,
construct…”

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2. Developing a Project Proposal and Concept Note
2.3 Project Planning: Project Tree
Goal
Objective 1 Objective 2
Result 1 Result 2 Result 3
Activity 1 Activity 2 Activity 3 Activity 4
Problem Hierarchy of Goal,
Objectives, Results
and Activities
SOURCE: NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre:
The Regional Environmental Centre for Central and Eastern Europe.

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: Purpose
A concept note is a brief outline of your proposed project.
The purpose of a concept paper:
For the funding agency: is to help applicants develop more competitive
proposals and to save time by eliminating proposals that are not likely to be
funded.
For the applicant: is to capture the interest of the funding agency and
demonstrate that the idea they are proposing is worthy of further
consideration.
Therefore, the first sentences of a concept paper are very important. You
want the funding agency representatives or board members to continue
reading!

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: Length and Format of the Document
The length and the format for writing a concept note actually depend upon the
donor agency.
Usually donors do not have a format for a concept note as they have for a full
proposal.
Most donor agencies request a minimum of three pages to a maximum of five
pages.

So, the shorter the better!

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: Template
1. Title: it should be snappy, informative, and distinctive. It may be divided
into two parts with the first one being short and catching the readers’ attention
and the second one more ‘serious’ and informative.
2. Background: include your problem and its analysis, together with the
following two guiding questions:
•Why it is crucial to address the problem identified?
•What has already been done to solve the problem?

3. Objectives: they should relate to the more general aim as previously agreed
and entered into the local action plan. (Keep in mind the Project Tree!)

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: Template
4. Outputs: they should be directly related to the project objectives. Typically
they are tangible items, such as a newly constructed technical facility, the
publication of information materials, or events, such as workshops or
stakeholder meetings. Depending on the project in question, intangible items
might also be mentioned, such as a rise in awareness.
5. Activities and duration: a summary of the planned activities to achieve the
project objectives should be included here.

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: Template
6. Beneficiaries and impacts: this section will be important for getting “buy-
in” from the donor. It should contain:
•The expected benefits, both in quantitative and qualitative terms, and when
and where they will occur.
•The underlying assumptions and the reasons why these benefits can be
expected for a specific group of beneficiaries.
•Considerations concerning how and by whom the impacts will be assessed.
7. Project management (includes monitoring and evaluation): this section
should explain how the objectives will be achieved and how the project will be
managed and evaluated. It should become clear who will lead the project and
what roles and responsibilities the various people in charge of tasks such as
financial management, monitoring and evaluation will have.
8. Budget

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2. Developing a Project Proposal and Concept Note
2.4 Writing a Concept Note: More tips
Don’t overwhelm the reader with details!
Consider your audience.
Consider your language.
Only include budgetary information if it is specifically requested.
Appearance is important.
Identify a door opener if you are not writing your concept note for an
announced call from the organisation. submission.

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: Definition
A budget is defined as patterns of expenditure and revenue over the life of the
project.

Realistic planning of finances is key to the implementation of a project or
program.

Generally, the budget has mainly two functions.
1.it estimates, as realistically as possible, the cost of
completing the objectives identified in the project proposal.
2.It provides a means to monitor the project's financial
activities over the life of the project.

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: How to start?
Typical categories may be, for example:
● people
● travel costs
● vehicles
● equipment
● consumables and supplies
● Sub-contracts

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: Identifying the Resources
needed
SOURCE: L. Barreto Dillon

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: Direct costs
“Direct costs are all those eligible costs which can be attributed directly to
the project and are identified by the beneficiary as such, in accordance with
its accounting principles and its usual internal rules”. Direct costs can be:
● Personnel costs: they should reflect the total remuneration, including
salaries plus social security charges (holiday pay, pension contribution, health
insurance, etc).
●Travel and subsistence allowances: first determine what travel expenses the
granting agency will allow, and then itemize the cost of each trip, e.g., round-
trip airfare, lodging and meals, taxis, visa, etc.
●Vehicles: usually this cost will be included in the travel and subsistence item.
●Durable equipment: any item which will retain its usefulness beyond the
grant period is considered capital equipment.
●Consumables and supplies: stationery, duplicating supplies,
typing/computing supplies, and software.

SOURCE: EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7
Indirect Actions. Seventh Framework Programme. URL:
ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
[Accessed: 08.05.2010]

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: Indirect costs
Indirect costs are all those eligible costs which cannot be identified by the
beneficiary as being directly attributed to the project, but which can be
identified and justified by its accounting system as being incurred in direct
relationship with the eligible direct costs attributed to the project.
Indirect costs, also called overheads, F&A and Facilities & Administrative
Costs, typically are costs of:
•operating and maintaining buildings (electricity/gas/water bills),
•grounds and equipment,
•depreciation,
•general and departmental administrative salaries and expenses
•library costs.

SOURCE: EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7
Indirect Actions. Seventh Framework Programme. URL:
ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
[Accessed: 08.05.2010]

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2. Developing a Project Proposal and Concept Note
2.5Budget Allocation and Resource Planning: More tips!
It is important that the budget is realistic.
Before preparing a budget, determine what would be an appropriate amount
to request.
The numbers should be specific.
Your planning should allow for contingencies.
Some donors require that some part of the cost of a project be borne by the
applicant institution.

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References
36
EUROPEAN COMMISSION (2009): Guide to Financial Issues relating to FP7 Indirect Actions. Seventh Framework Programme.
URL: ftp://ftp.cordis.europa.eu/pub/fp7/docs/financialguide_en.pdf
[Accessed: 08.05.2010]
METHOD123 (2003): Project Management Guidebook. URL: www.method123.com. [Accessed: 20.05.2010]
NEBIU, B. (2002): Developing Skills of NGOs, Project Proposal Writing. Szentendre: The Regional Environmental Centre for
Central and Eastern Europe. URL: http://documents.rec.org/publications/ProposalWriting.pdf
[Accessed: 07.08.2010]
NETSSAF (2008): The NETSSAF Participatory Planning Approach. A Tutorial for Sustainable Sanitation. URL:
http://www.netssaftutorial.com [Accessed: 14.05.2010]
PHILIP, R., ANTON, B., BONJEAN, M., BROMLEY, J., COX, D., SMITS, S., SULLIVAN, C. A., VAN NIEKERK, K., CHONGUIÇA, E.,
MONGGAE, F., NYAGWAMBO, L., PULE, R., BERRAONDO LÓPEZ, M. (2008): Local Government and Integrated Water Resources
Management (IWRM) Part III: Engaging in IWRM – Practical Steps and Tools for Local Governments. Freiburg: ICLEI European
Secretariat GmbH.
PPIAF –PUBLIC-PRIVATE INFRASTRUCTURE ADVISORY FACILITY- (2010): What are Public-Private Partnerships. URL:
http://www.ppiaf.org [Accessed on 14.05.2010]
SONI, P. (2005): Solution Exchange for WES-NET India. WES-NET India -Water & Environmental Sanitation Network-. URL:
http://www.solutionexchange-un.net.in/environment/cr-public/cr-se-wes-29070501-public.pdf
[Accessed on 16.05.2010]
TRÈMOLET, S., PEREZ, E. and KOSLKY, P. (2007): WSP Sanitation Financing Study. Methodological Note. URL:
http://www.susana.org/images/documents/07-cap-dev/a-material-topic-wg/wg02/tremolet-et-al-2007a-methodological-
note-sanitation-wsp-en.pdf
[Accessed on 16.05.2010]
 
 

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“Linking up Sustainable Sanitation,
Water Management & Agriculture”
SSWM is an initiative
supported by:
Compiled by: