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Public Adminstration QUESTION #9561
Question 1
The Planning Commission's function includes appraisal of development projects before approval. What distinguishes 'project appraisal' from 'project feasibility study,' and at which stage in the project cycle does each occur?
  • Project feasibility is a desk review of existing data; project appraisal involves new data collection through field surveys — feasibility precedes preparation, appraisal follows it
  • Project feasibility is the in-depth technical, financial and economic study conducted before project preparation; project appraisal is the Planning Commission's independent review of the data and assumptions in the prepared project document — appraisal follows preparation✔️
  • Project feasibility determines whether a project is politically acceptable; project appraisal determines whether it is technically sound — both occur simultaneously before Cabinet approval
  • Project feasibility is conducted by the sponsoring department; project appraisal is conducted by the legislature's Public Accounts Committee after implementation
Correct Answer Explanation
The project cycle is: identification → feasibility (in-depth technical/financial/economic viability study) → preparation (filling PC-I form with project details) → appraisal (Planning Commission's independent verification of the PC-I data and assumptions) → approval → implementation → evaluation. Feasibility precedes preparation; appraisal follows it — they are distinct stages with different actors and purposes.