Topic Two
Project Concept Note
Meaning of a Project Concept Note
▪ A concept note is a brief outline of the project you have in your
mind.
▪ Project concept is a tool for securing interest, and commitment from
the management or project partners.
▪ A summary of a proposal containing a brief description of the idea
of the project and the objectives to be pursued.
▪ Final output of the project identification stage
Importance of a Concept Note
▪ Contains a complete description or key points of the proposed project
idea
▪ A tool for capturing the interest of the funding agency and
demonstrating that the idea being proposed is worthy of further
consideration.
▪ In some cases, funding agencies require a concept note before the
submission of a full proposal,
* in order to decide whether the proposed project is in line with the
priorities of the organisation
* to eliminate proposals that are not likely to be funded.
What is a good Concept Note?
▪ Short and Precise (2-3 pages)*
▪ Should follow the taste of the funding agency or donor
▪ Written using simple language
Steps in Developing a Concept Note
▪ Project Identification
* This is the first stage of the project cycle, where project teams identify a local
need or economic opportunity that a project could address or capture.
* Proper identification of a project can reduce the likelihood of project failure
and minimize the risk of misusing the public resources by appraising and
structuring a non-feasible project.
* Project identification involves; generation of ideas, idea screening, idea
selection, and concept note designing
Steps in Developing a Concept Note
▪ Project Idea generation and Sources
* Project idea can be generated from;
• Individuals
• Groups of individuals (community)
• Local leaders
• NGOs
• Policy makers, Planners
• International development agencies
• Government declarations
Steps in Developing a Concept Note
▪ Project Idea Screening
* Project Idea Screening criteria can include;
• Compliance with laws and regulations
• Economic and financial appraisal
• Environmental and social issues
• Strategic requirements: belong to priority sectors and aligned with
Govt/Funder/Donor plans
• Readiness of the project and the implementing organisation
o Can the project be completed, given the organisation’s current situation?
o Is the organisation’s capable of implementing the project?
Steps in Developing a Concept Note
▪ Project Idea Selection
* After screening, the selected project ideas are submitted to the
organisation top management for discussion and endorsement before
the concept note is prepared.
* If the project idea is endorsed, the team of experts/project writing task
forces will move to the next step which is
• Project concept note preparation.
What should the Concept Note Contain?
Important Sections of a CN Important Sections of a CN
▪ Cover Page ▪ Financial Overview
▪ Background information * Estimated project cost and projected
* Institutional background revenue
* Geographic description
* Problem statement and need * Financing assumptions
▪ Project Overview ▪ Project management
* Objectives and impact * Monitoring and evaluation
* Results * Project implementation team
* Activities and duration
* Relevance to development priorities
▪ Risk Management
* Targeted Beneficiaries * Risk identification and mitigation
▪ Economic Overview ▪ Environmental and social overview
* Expected economic benefits ▪ Budget
* Expected market readiness (demand)
* Expected source of raw materials (supply
side)
What should the Concept Note Contain?..
Cover Page
▪ The cover page components;
* Organization name and Logo
* Project Name
* Project Location
* Contact information
* Funder name
* When the concept note prepared-month and year
What should the Concept Note Contain?..
Background information
▪ The background information consists of;
* Institutional Background;
• Provide a brief overview of the implementing organisation, its mandate
concerning the project, and the legal and institutional framework
supporting the project.
* Problem Statement and Need;
• Explain the problem/challenge the organisation needs to solve, a
condition to be improved, or a potential opportunity to be captured.
• What is the justification for the project?
• Why the organisation came up with this project idea?
• Why it is crucial to address the problem identified?
What should the Concept Note Contain?..
Project Overview
▪ Project overview consist of;
* Goal and specific objectives: Objectives of the project and Expected benefits
* Results: the results can be long term results or short term results (Impacts,
Outcomes and outputs)
* Activities and duration: a summary of the planned activities to achieve the
project objectives
* Targeted Beneficiaries: who are the beneficiaries (direct and indirect), what are
the expected benefits, both in quantitative and qualitative terms, and when and
where they will occur; how will they be assessed.
* Relevance to Development Priorities: How the project connects to the priorities set
by the central Govt, Organisation strategic plan.
What should the Concept Note Contain?..
Economic Overview
▪ Economic Overview consist of;
* Expected Economic Benefits:
• Indicate the expected economic benefits to be generated from the project.
* Expected Market Readiness (demand):
• Provide information on markets and the potential demand for the project.
• Briefly state the targeted users or beneficiaries of the project (estimated number
and their characteristics)
* Expected Source of Raw Materials (supply side):
• If the project requires raw materials for processing, explain the common sources of
supplies.
What should the Concept Note Contain?..
Financial Overview
▪ Financial Overview comprise of;
* Estimated Project Cost and Projected Revenue:
• Provide the estimated total project cost (investment or capital, operational
and maintenance cost of the project).
• Highlight the available budget (i.e., the organisation’s contribution and
any other funding available).
• Explain how the funds requested by the organisation will be used,
* Financing Assumptions:
• Specify the anticipated financing option or plan to cover the funding gap,
e.g., PPP approach, central government grants, Organisation’s own-source
revenue, donor funds, or a combination of options
What should the Concept Note Contain?..
Project management
▪ Project management deals with;
* Describing the organisation’s technical capacity for preparing and
managing the project.
* Explain the organisation’s plan for managing the project,
* Name the proposed project officer and the project management team
* Discuss the proposed monitoring, evaluation and reporting modality
What should the Concept Note Contain?..
Risk Management
▪ Risk management deals with;
* Identifying the risks in which the project is likely to face, this can be in aspects of;
• Technical risks
• Financial risks
• Operational risks
• External risks
* Analysing the risks in terms of;
• Probability of risk occurring
• Impacts of the risk on project objectives
* Developing mitigation strategies to address these risks
What should the Concept Note Contain?..
Environmental and social overview
▪ Briefly mention any expected environmental and social impacts and the
plan to conduct ESIA (if required).
Budget
▪ Show overview of the inputs needed to achieve the project objectives
* These may be, for example: people, travel costs, vehicles, equipment, supplies,
services, works facilities and overheads
Group assignment
▪ In your group, go and visit this website:
* [Link]
* Download the documents available on the website
* Select any key thematic areas for funding in 2023 and identify
the project idea
* Then from the idea identified, develop a project concept note
* Submission date:
The end
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