1. Identification, formulation and planning of the project: National Planning commission is the government body which is mainly responsible for the identification, formulation, planning and monitoring and evaluation of development project.The techniques like feasibility study, financial analysis, cost benefits analysis, capital budgeting etc are used to formulate the project. Project's proposal are prepare containing outlines, total investment of a project, sources of funds, returns from the project, economic analysis of the project, project implementation, planning procedures, logistic support and administration and then control and local level project proposals are submitted to NPC (National Planning Commission) and Line Ministries for approval respectively. The team experts in NPC evaluates the proposal properly based on the guidelines provided by NPC. However central level projects are approved by NPC and local level projects are adopted by the secretary of the concerned ministries. All the approved projects are planned for the effective implementation.
2. Implementation of the Project: After the proper evaluation and approval of the submitted proposal, NPC sends the project documents to the concerned ministries for the implementation. Then project organization is set up, budget is released, resources are mobilized and implementation procedures are followed.
3. Termination of the project: In the termination of the project, output are transferred to beneficiaries group and remaining resources are send back to parent organization, accounts are closed and human resources are sent to parent organization if they are from parent organization.
4. Project monitoring and evaluation: It is done to know the performance level of the project and to follow the corrective actions on time. The present monitoring and evaluation system in Nepal was developed by UNDP/ World Bank under which monthly and trimester performance reports are prepared from line ministries. It is done under the leadership of concerned ministries with the participation of representative of NPC. Normally projects are classify into priority and non-priority project. Priority projects are monitored and evaluated by NPC but others are by responsible line ministries
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