The REEPRO project receives funding from the European Commission within the COOPENER Programme. The sole responsibility for the content of this [webpage, publication etc.] lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein. 21 EIE-06-256 REEPRO Promotion of the Efficient Use of Renewable Energies in Developing Countries Chapter II PD - Project Development Authors Mr. Chau Kim Heng, COMPED Mr. Sam Phalla, COMPED Mr. Thach Chitaro, COMPED Mr. Uch Rithy, COMPED
Transcript
The REEPRO project receives funding from the European Commission within the COOPENER Programme. The sole responsibility for the content of this [webpage, publication etc.] lies with the authors. It does not
necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein.
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EIE-06-256 REEPRO
Promotion of the Efficient Use of Renewable Energies in Developing Countries
Chapter II PD - Project Development
Authors Mr. Chau Kim Heng, COMPED
Mr. Sam Phalla, COMPED Mr. Thach Chitaro, COMPED
Mr. Uch Rithy, COMPED
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2.1 Introduction ................................................................................................................30 2.2 What is a project? ......................................................................................................30 2.3 What is Project Management?...................................................................................30 2.4 Project cycle...............................................................................................................31
2.4.1 Need Identification .............................................................................................32 2.4.2 Initiation..............................................................................................................32 2.4.3 Planning .............................................................................................................33 2.4.4 Executing ...........................................................................................................33 2.4.5 Controlling..........................................................................................................33 2.4.6 Closing out .........................................................................................................33
2.9.1 Planning Budget.................................................................................................37 2.9.2 Procurement Procedures ...................................................................................37 2.9.3 Construction.......................................................................................................38 2.9.4 Case Example – Installation of a Biofuel co-generator ......................................38 2.9.5 Lessons learned of four projects........................................................................39
Table 7: Time table.............................................................................................................. 38
Table 8: Simple Gantt Chart for Boiler Replacement .......................................................... 39
Table 9: Summary of lessons learned from projects' case studies...................................... 40
List of Acronyms CBA Cost Benefit Analysis
GEF Global Environment Facility
NGO Non-government Organisation
PIs Performance Indicators
PV Photovoltaic
SA South-Asia
SEEDS Sarvodaya Economic Enterprise Development
SELF Solar Electric Light Fund
SES Solar Engineering Services
SWOT Strengths, Weaknesses, Opportunities and Threats
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1 Project Development
1.1 Log Frame Analysis
Log Frame Analysis is a technique for project development. This is also known as the Logical Framework Approach, Logical Framework Analysis, Log frame or Project Frame-work.
Log Frame Analysis is a useful technique because it:
• Develops a structured set of project ideas by clarifying objectives and desired outputs; • Helps compare alternatives or options, including the option of doing nothing; • Helps develop a realistic project which matches available resources; • Provides a clear, brief and logical description of the proposed project; • Helps the identification of possible risks to project implementation; • Provides a useful basis for project appraisal; • Is recognized, and sometimes required, by many potential funders.
Log Frame Analysis cannot solve all your problems. It is only a tool. There are many varie-ties of log frame analysis, but the broad principles are the same for all of them.
The main elements of a Log Frame are shown below:
Table 1: Log Frame Diagram
HORIZONTAL LOGIC
VERTICAL LOGIC Indicators Means of Verifica-tion
Most Important Assumptions
Wider Objective How to measure Wider Objective
How will you check the measurement?
What assumptions are you making?
Immediate Objective How to measure Immediate Objective
How will you check the measurement?
What assumptions are you making?
Outputs How to measure outputs produced
How will you check the measurement?
What assumptions are you making?
Input How to measure inputs
How will you check the measurement?
What assumptions are you making?
Wider Objective - (sometimes called long term objectives). Months or years after the project has been completed, to what extent will the problem have been addressed?
Immediate Objective - (sometimes called short term objectives). The situation immediately after a project has been completed. This should reflect the project outputs.
Outputs - (Sometimes called results). What will be the tangible measurable results of the project?
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Inputs - (Sometimes called activities). All the resources needed to carry out a specified ac-tivity within the work plan. Typically they may include: staff and overheads, equipment, ma-terials and supplies, costs of travel and subsistence, costs of printing and distribution. Each item should be specified in as much detail as possible including: quantity, quality, delivery date and place.
Indicators - Factors that will indicate whether the project is running effectively. Indicators are used:
• To measure progress towards immediate and wider objectives • To assess inputs and measure outputs • To indicate changes in the development of the project.
Valid indicators are (ideally):
• Independent - a separate indicator for each objective, input and output • Verifiable - capable of measurement • Specific - clearly relate to the aspect being measured • Accessible - should make use of readily available information • Sufficient number and detail - to allow reliable conclusions to be made.
Qualitative indicators can also be useful as long as the basis of the judgment involved is made quite clear.
1.2 SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT Analysis can sometimes be a useful technique for generating project ideas and for comparing and assessing project options. It is similar to brain-storming and it may be useful when you are defining the objectives of your project (i.e. it can be used to support Log Frame Analysis). SWOT analysis involves identifying and listing the strengths, weaknesses, opportunities and threats of a situation, and provides a basis for further discussion. A SWOT analysis can be useful in making preliminary assessments of various project options.
One advantage of a SWOT analysis is that it is quick and easy to use. It should help you to identify where there are uncertainties or information missing in a project proposal. SWOT analysis may provide you with a starting point for more detailed analysis.
Internal and external factors The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:
• Internal factors – The strengths and weaknesses internal to the organization. • External factors – The opportunities and threats presented by the external environment.
The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's
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(Product, Price, Publicity, and Place); as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.
SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.
It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.
Strengths A firm's strengths are its resources and capabilities that can be used as a basis for develop-ing a competitive advantage. Examples of such strengths include:
• Patents • Strong brand names • Good reputation among customers • Cost advantages from proprietary know-how • Exclusive access to high grade natural resources • Favorable access to distribution networks Weaknesses The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:
• Lack of patent protection • A weak brand name • Poor reputation among customers • High cost structure • Lack of access to the best natural resources • Lack of access to key distribution channels
In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.
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Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth.
Some examples of such opportunities include: • An unfulfilled customer need • Arrival of new technologies • Loosening of regulations • Removal of international trade barriers Threats Changes in the external environment also may present threats to the firm. Some examples of such threats include:
• shifts in consumer tastes away from the firm's products • emergence of substitute products • new regulations • increased trade barriers
The following table shows a summary of the Findings of a SWOT analysis on the implemen-tation of PV Solar systems in Laos.
Table 2: Example SWOT Matrix to evaluate the PV Solar potential in Laos
Strength Weakness PV Solar is universally applicable No special requirements for the location Electricity available at remote locations Reliable technology, no moving parts
Price of investment for solar systems Warranty issues can often not be resolved locally Coupling with battery system can lead frequent
breakdowns Opportunity Threats Easy to install systems Little knowledge of operators necessary Basis for access to modern information
technology
Electricity price in the nation too low No direct coupling between energy and income
generation Lack of investment support can lead to an under-
performance of such a programme
The SWOT Matrix A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity.
To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:
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• S-O strategies pursue opportunities that are a good fit to the company's strengths. • W-O strategies overcome weaknesses to pursue opportunities. • S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability
to external threats. • W-T strategies establish a defensive plan to prevent the firm's weaknesses from making
it highly susceptible to external threats.
1.3 Cost Benefit Analysis (CBA)
Cost Benefit Analysis is a widely used analysis technique in project development and as-sessment. It allows a quantitative assessment to be made of the expected results of a pro-ject (expressed as financial, economic or social returns on investment) and to compare the effectiveness of the investment with alternative uses of the resources. Cost Benefit Analysis is especially useful because it allows you to investigate and compare the possible effects of project alternatives and changes in your assumptions.
1.4 Sensitivity and Risk Analysis
The aim of the risk analysis is to recognize and evaluate risks concerning business environ-ment, company assets, employees and responsibilities.
The Purpose of a sensitivity analysis is to find out either quantitatively or qualitatively, how sensitive company is to changes in different risk parameters. Many expectations of the cash flow (and other things) in a project are based on assumptions that have an element of uncer-tainty. The Sensitivity Analysis is an assessment (and control) of risk. It is used to identify those parameters that are both uncertain and for which the project decision is sensitive.
Figure 1: Risk Window and Chart
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1.5 Figure Some Useful Suggestions
To become successful in project development you need to present your ideas in a clear and structured way. Log Frame Analysis provides a tested methodology for achieving this. Time spent learning how to use Log Frames effectively will usually pay off when you reach the stage of implementing a project.
The important thing to remember about the project assessment techniques is that it is only necessary to understand the main purpose and principles of those. In many cases, the pro-spective project funder will advise on what has to be done. For bigger projects experts (usu-ally external consultants) will be employed to do the work. This will normally be part of a fea-sibility study for the project. For smaller projects or the foundation of a micro-enterprise the mentioned tools should be used by the project planners and enterprise founders themselves.
2 Project Management
2.1 Introduction
Project management is concerned with the overall planning and co-ordination of a project from conception to completion aimed at meeting the stated requirements and ensuring com-pletion on time, within cost and to required quality standards. Project management is nor-mally reserved for focused, non-repetitive, time-limited activities with some degree of risk and that are beyond the usual scope of operational activities for which the organization is responsible.
2.2 What is a project?
A project is a one-shot, time-limited, goal-directed, major undertaking, requiring the commit-ment of varied skills and resources". A project is a temporary endeavour undertaken to cre-ate a unique product or service. A project is temporary in that there is a defined start (the decision to proceed) and a defined end (the achievement of the goals and objectives). On-going business or maintenance operations are not projects. Energy conservation projects and process improvement efforts that result in better business processes or more efficient operations can be defined as projects. Projects usually include constraints and risks regard-ing cost, schedule or performance outcome.
2.3 What is Project Management?
A successful Project Manager must simultaneously manage the four basic elements of a project: resources, time, cost, and scope. Each element must be managed effectively. All these elements are interrelated and must be managed together if the project, and the project manager, is to be a success.
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Managing Resources A successful Project Manager must effectively manage the resources assigned to the pro-ject. This includes the labor hours of the project team. It also includes managing labor sub-contracts and vendors. Managing the people resources means having the right people, with the right skills and the proper tools, in the right quantity at the right time. However, managing project resources frequently involves more than people management. The project manager must also manage the equipment (cranes, trucks and other heavy equipment) used for the project and the material (pipe, insulation, computers, manuals) assigned to the project.
Managing Time and Schedule Time management is a critical skill for any successful project manager. The most common cause of bloated project budgets is lack of schedule management. Fortunately there is a lot of software on the market today to help you manage your project schedule or timeline. Any project can be broken down into a number of tasks that have to be performed. To prepare the project schedule, the project manager has to figure out what the tasks are, how long they will take, what resources they require, and in what order they should be done.
Managing Costs Often a Project Manager is evaluated on his or her ability to complete a project within budget. The costs include estimated cost, actual cost and variability. Contingency cost takes into account influence of weather, suppliers and design allowances.
2.4 Project cycle
The process flow of Project management processes is shown in Figure 2. The various ele-ments of project management life cycle are:
a) Need identification
b) Initiation
c) Planning
d) Executing
e) Controlling
f) Closing out
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Figure 2: Process Flow of Project Management Process
2.4.1 Need Identification
The first step in the project development cycle is to identify components of the project. Pro-jects may be identified both internally and externally:
• Internal identification takes place when the energy manager identifies a package of en-ergy saving opportunities during the day-to-day energy management activities or from facility audits.
• External identification of energy savings can occur through systematic energy audits undertaken by a reputable energy auditor or energy service company.
• In screening projects, the following criteria should be used to rank-order project opportu-nities.
• Cost-effectiveness of energy savings of complete package of measures (Internal rate of return, net present value, cash flow, average payback)
• Sustainability of the savings over the life of the equipment. • Ease of quantifying, monitoring, and verifying electricity and fuel savings. • Availability of technology, and ease of adaptability of the technology to Indian conditions. • Other environmental and social cost benefits (such as reduction in local pollutants, e.g.
SOx)
2.4.2 Initiation
Initiating is the basic processes that should be performed to get the project started. This starting point is critical because those who will deliver the project, those who will use the project and those who will have a stake in the project need to reach an agreement on its initiation. Involving all stakeholders in the project phases generally improves the probability of satisfying customer requirements by shared ownership of the project by the stakeholders. The success of the project team depends upon starting with complete and accurate informa-tion, management support, and the authorization necessary to manage the project.
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2.4.3 Planning
Project planning defines project activities that will be performed; the products that will be produced and describes how these activities will be accomplished and managed. Project planning defines each major task, estimates the time, resources and cost required, and pro-vides a framework for management review and control. Planning involves identifying and documenting scope, tasks, schedules, cost, risk, quality, and staffing needs. The project plan will address how the project team will manage the project elements. It will provide a high level of confidence in the organization's ability to meet the scope, timing, cost, and qual-ity requirements by addressing all aspects of the project.
2.4.4 Executing
Once a project moves into the execution phase, the project team and all necessary re-sources to carry out the project should be in place and ready to perform project activities. The project plan is completed and base lined by this time as well. The project team and the project manager's focus now shifts from planning the project efforts to participating, observ-ing, and analyzing the work being done. The execution phase is when the work activities of the project plan are executed, resulting in the completion of the project deliverables and achievement of the project objective(s). This phase brings together all of the project man-agement disciplines, resulting in a product or service that will meet the project deliverable requirements and the customers need. In short, it means coordinating and managing the project resources while executing the project plan, performing the planned project activities and ensuring they are completed efficiently.
2.4.5 Controlling
Project Control function that involves comparing actual performance with planned perform-ance and taking corrective action to get the desired outcome when there are significant dif-ferences. By monitoring and measuring progress regularly, identifying variances from plan, and taking corrective action if required, project control ensures that project objectives are met.
2.4.6 Closing out
Project closeout is performed after all defined project objectives have been met and the cus-tomer has formally accepted the project's deliverables and end product or, in some in-stances, when a project has been cancelled or terminated early. Although, project closeout is a routine process, it is an important one. By properly completing the project closeout, or-ganizations can benefit from lessons learned and information compiled. The project closeout phase is comprised of contract closeout and administrative closure.
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2.5 Technical Design
For a project to be taken up for investment, its proponent must present a sound technical feasibility study that identifies the following components:
• The proposed new technologies, process modifications, equipment replacements and other measures included in the project.
• Commercial viability of the complete package of measures (internal rate of return, net present value, cash flow, average payback).
• Any special technical complexities (installation, maintenance, repair), associated skills required.
• Preliminary designs, including schematics, for all major equipment needed, along with design requirements, manufacturer's name and contact details, and capital cost esti-mate.
• Organizational and management plan for implementation, including timetable, personnel requirements, staff training, project engineering, and other logistical issues.
2.6 Financing
Project funds can be obtained from either internal or external sources.
Internal sources include:
• Direct cash provision from your company reserves • From revenue budget (if payback is less than one year) • New share capital
External sources of funds include: • Contracts • Grants • Bank loans • Leasing arrangement • Payment by savings i.e. A deal arranged with equipment supplier • Private finance initiative
Your company relies on the availability of external funds, especially of potential contractors. You only can survive if you have enough contracted projects. Nevertheless, internal financed projects are also needed as they could help you to promote your company or develop new technologies and concepts.
2.7 Contracting
Since a substantial portion of a project is typically executed through contracts, the proper management of contracts is critical to the successful implementation of the project. In this context, the following should be done.
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• The competence and capability of all the contractors must be ensured. One weak link can affect the timely performance of the contract.
• Proper discipline must be enforced among contractors and suppliers by insisting that they should develop realistic and detailed resource and time plans that are matching with the project plan.
• Penalties may be imposed for failure to meet contractual obligations. Likewise, incen-tives may be offered for good performance.
• Help should be extended to contractors and suppliers when they have genuine prob-lems.
• Project authorities must retain independence to off-load contracts (partially or wholly) to other parties where delays are anticipated.
Several types of contracts may be used to undertake the installation and commissioning:
• Traditional Contract: All project specifications are provided to a contractor who pur-chases and installs equipment at cost plus a mark-up or fixed price.
• Extended Technical Guarantee/Service: The contractor offers extended guarantees on the performance of selected equipment and / or service/maintenance agreements.
• Extended Financing Terms: The contractor provides the option of an extended lease or other financing vehicle in which the payment schedule can be based on the expected savings.
• Guaranteed Saving Performance Contract: All or part of savings is guaranteed by the contractor, and all or part of the costs of equipment and/or services is paid down out of savings as they are achieved.
• Shared Savings Performance Contract: The contractor provides the financing and is paid an agreed fraction of actual savings as they are achieved. This payment is used to pay down the debt costs of equipment and/or services.
2.8 Implementation with Gantt Charts
The main problems faced by project manager during implementation are poor monitoring of progress, not handling risks and poor cost management.
a) Poor monitoring of progress: Project managers some times tend to spend most of their time in planning activity and surprisingly very less time in following up whether the imple-mentation is following the plan. A proactive report generated by project planner software, excel or even hand drawing can really help the project manager to know whether the tasks are progressing as per the plan.
b) Not handling risks: Risks have an uncanny habit of appearing at the least expected time. In spite of the best efforts of a project manager they are bound to happen. Risks need immediate and focused attention. Delay in dealing with risks cause the problem to aggravate and has negative consequences for the project.
c) Poor cost management: A project manager's success is measured by the amount of cost optimization done for a project. Managers frequently do all the cost optimization during
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the planning stages but fail to follow through during the rest of the stages of the project The cost graphs in the Project planner software can help a manager to get a update on project cost overflow. The cost variance (The difference between approved cost and the projected cost should be always in the minds of the project managers).
Gantt Charts There are different basic project planning techniques. One of them is the so-called Gantt chart. Gantt charts are also called Bar charts. The use of Gantt charts started during the industrial revolution of the late 1800's. An early industrial engineer named Henry Gantt de-veloped these charts to improve factory efficiency. Gantt chart is now commonly used for scheduling the tasks and tracking the progress of energy management projects. Gantt charts are developed using bars to represent each task. The length of the bar shows how long the task is expected to take to complete. Duration is easily shown on Gantt charts. Sequence is not well shown on Gantt Charts.
Table 4: Gantt Chart
2008 Task Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Task A
Task B
Task C
Task D
Task E
Task F
If, for example, the start of Task C depends on both Activity B and Activity E, then any delay to Task E will also delay Task C.
2.9 Performance Monitoring
Once the project is completed, performance review should be done periodically to compare actual performance with projected performance. Feedback on project is useful in several ways:
• It helps us to know how realistic were the assumptions underlying the project • It provides a documented log of experience that is highly valuable in decision making in
future projects • It suggests corrective action to be taken in the light of actual performance • It helps in uncovering judgmental biases • It includes a desired caution among project sponsors.
Performance Indicators (PIs) are an effective way of communicating a project's benefits, usually as part of a performance measuring and reporting process. Performance Indicators
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are available for a wide range of industries and allow a measure of energy performance to be assigned to a process against which others can be judged. Depending on the nature of the project, savings are determined using engineering calculations, or through metering and monitoring, utility meter billing analysis, or computer simulations.
2.9.1 Planning Budget
Budget requirement varies depending upon the duration and size of the project. For projects involving long duration with multiple tasks and procurements, resources have to be allocated judiciously as and when required. The company or project manager has to ensure that this is done to ensure successful completion of project.
2.9.2 Procurement Procedures
Having identified the material and equipment required for the project, the next step is to identify the various vendors, provide specifications, invite quotations, and carryout discus-sions with selected vendors. For medium to high value items, tendering process can be adopted. Tenders have to be evaluated for technical and financial aspects. It would be de-sirable to have purchase manager as part of energy efficiency team to facilitate smooth pro-curement process.
Activity 1 can start and finish as planned, no procurement required. Activity 2 the material should arrive on the 1st, therefore it can start and finish as planned. Activity 3 the material will not arrive until the 3rd, therefore it cannot start until the 4th and finish 2
days late. Activity 4 the material will not arrive until the 3rd, therefore it cannot start until the 4th . Activity 5 the material arrives on the 3rd, but it cannot start until activity 2 has finished. Activity 6 although the material arrives a day late this activity cannot start until activity 3 is com-
plete (logic constraint).
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2.9.3 Construction
During the construction phase in industrial buildings, plants may need to be shutdown. Care-ful planning is required, so that the task is carried out without affecting the production. Pro-ject manager has to be aware of the annual maintenance schedule, holidays, annual main-tenance or any major breakdown period during which anyway plant will be shutdown. Con-struction activity should be carefully supervised by energy and project manager so as to en-sure quality and safety.
2.9.4 Case Example – Installation of a Biofuel co-generator
Installation of a biofuel co-generator as energy source of a manufacturing company.
Table 7: Time table
Activity Code Activity Duration in Days Depends on A Prepare technical specifications 10 - B Tender Processing 25 A C Release of work orders 3 H D Supply of co-generator equipment 60 C E Supply of Auxiliaries 20 C F Supply of Pipes & Pipe fittings 10 C G Civil Work 15 C H Installation of Auxiliary equipment & piping 5 E, F&G I Installation of the co-generator 10 D & II J Testing and Commissioning 2 1
Gantt Chart The Figure below shows a Gantt chart for a simple sale and installation project: the installa-tion of a biofuel co-generator as energy source for a manufacturer. As already mentioned, the Gantt chart is the simplest and quickest method for formal planning. Gantt charts can be very useful in planning projects with a limited number of tasks and with few inter-relationships. This chart typically depicts activities as horizontal lines whose length depends on the time needed to complete the activities. These lines can be progressively overprinted to show how much of activity has been completed.
Drawing a Gantt chart requires information on: • The logic of the tasks; • The duration of the tasks; • The resources available to complete the tasks.
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Table 8: Simple Gantt Chart for Boiler Replacement
Task
Duration (days)
A 10 Prepare technical specifications B 25 Tender processing C 3 Release of work orders D 60 Supply of cogenerator equipment E 20 Supply of auxiliaries F 10 Supply of Pipes and Pine Fittings G 15 Civil work H 5 Installation of auxiliary equipment and pip-
ing I 10 Installation of cogenerator J 2 Testing and commissioning
2.9.5 Lessons learned of four projects
A summary of lessons learned of the following four projects is shown in the table below:
• Char Montez, Bangladesh – A micro-enterprise owned and operated by women to manu-facture and sell battery-operated lamps.
• Maphephetheni Development Program – A community enterprise to install solar home systems and provide micro-finance
• Sri Lanka Energy Services Development Project – A national community financing pro-gram for solar home systems
• Sagardeep Island, India – A community owned solar PV mini-grid providing power to island residents
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Table 9: Summary of lessons learned from projects' case studies
Case Study 1 Char Montez, Bangla-
desh
Case Study 2 Maphephetheni De-velopment Program, Natal Province, SA
Case Study 3 Sri Lanka Energy Services Develop-
ment Project
Case Study 5 Sagardeep Is.,
India
Existing in-frastructure and enabling policies
Community had experience with micro-credit and active NGOs
Trusted well-known organization (SEEDS) used for project delivery. Linked to national Energy Services Delivery Program
Established com-munity enterprise used to delivery project. Area designated under Special re-gional Government and rural power programs
Needs As-sessment
Women energy needs identified by women staff. Women owners and employees of enter-prise
Choice of energy tech-nology
Project started with simple technology and few credit sales that fostered cash flow. Expanded to more complex products and micro-credit system
Integration of several technologies reduced overheads and ex-panded the skill sets of trainees
A variety of product suppliers kept prices competitive and encouraged innova-tion
Community ownership & structure
Cooperative owner-ship by women employees im-proved status of women as well as quality of life. Women more suc-cessful at sales and delivered neater installations
Community ownership of project successfully built on existing spirit of community cooperation. Good outside technical and management assis-tance provided to the community (SELF, SES).
SEEDS effective because it delivers both technical and micro-credit services
Cooperative own-ership of mini-grid and use of local banks increased feeling of owner-ship
Funding and financing
Core funding needed to set up enterprise and pro-vide training. Users pay full price for products. Micro-credit successfully used for credit sales.
Grant financing needed to provide outside ex-pertise and set up community structure. Longer loan periods (>4 years) needed to make products affordable to all.
Capacity built through ESD Pro-gram. GEF Subsidy Payments make solar systems afford-able. Top down financing requires active and experi-enced delivery agents (SEEDS)
Capital grant used to fund mini-grid. Maintenance and management costs recovered through power charges. Metered consump-tion more effective than flat fee
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3 Reference
BCSE (2006): Renewable Energy in Asia: the Cambodia report by BCSE
http://en.wikipedia.org/wiki/SWOT_analysis
http://www.mos.gov.pl/mos/publikac/Raporty_opracowania/manual/index.html [Accessed 14 Feb 2008]
http://www.quickmba.com/strategy/swot/
http://www.surveysystem.com/sdesign.htm
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