Here's an extract from the some ToR for a piece of work to design a PFM reform project:
'Produce Financial and Economic analysis to allow informed decision to be taken on the project funding. To the extent possible, the Consultants will quantify and value in monetary terms the problems, the project purpose and the contribution of the project to achieving the overall objective. Particular attention should be paid to the Logical framework columns indicating the Objectively Verifiable Indicators, at all levels of the Logical framework.
The Financial and Economic analysis will include the following elements:
- Identification of the main stakeholders significantly affected by the Project and in particular, the poor people concerned,
- Cost effectiveness analysis,
- For each group of stakeholders selected, a Financial Analysis (using cost/benefit and/or cost effectiveness) must be performed,
- Analysis of economic effects which should include effects of the project on economic Growth.'
I consider myself reasonably knowledgeable in the areas of PFM and cost-benefit analysis, but this requirement really made me scratch my head. So much so, that I declined to go for this opportunity. Someone did though - I wonder that they had in mind? I guess 'to the extent possible' provides an escape route.
