Assignment on
Project Management(PJTM-402)
Topic: Project Proposal Submission
Submitted To:
Mr. Md. Sarwar Uddin
Assistant Professor
Faculty of Business Administration
BGC Trust University Bangladesh
Submitted By: Smile Group
ID Name of group member Remarks
1016124 Md. Kamal Uddin
1016145 Md. Rashedul Karim Rakil
1016147 Ismail Mohammad
1016099 Afroja Sultana
1016115 Prianka Das
1016141 Sadia Begum
1016177 Dipa Deb Bormon
1015028 Sufia Sultana

Date of Submission:
October 26, 2013

Letter of Transmittal
October 26, 2013

Mr. Dhiman Borua
Lecturer
Faculty of Business Administration
BGC Trust University Bangladesh
BGC Biddyanagar Campus
Subject: Submission of group Assignment

Dear Sir,
We are glad to inform you that we have completed our group assignment on “Project Proposal Submission”. We have gathered extensive knowledge while we were doing this assignment. Though there was some limitation and difficulties but we tried our level best to eliminate those limitations with your help and your guidelines.

We also express my honest confirmation in support of the fact that the said Assignment has neither been used before to fulfill any other course related purpose nor it will be submitted to any other person or authority in future.

Yours sincerely,

…………………………………
Md. Kamal Uddin (Group leader)
On Behalf of “Smile Group”
BBA , 7th Semester(sec:B), 16th Batch
Faculty of Business Administration. Table of contents
Content: Page no.
Chapter : Literature Review
 What is project Proposal?
 Why project Proposal?
 What should be the size of a proposal? How long or short should a proposal be?
 How can I start writing a proposal?
 Whom should you involve in planning and writing a proposal?
 What is a project rationale in a proposal?
 How should the goals and objectives be written in a proposal?
 Format for submitting project proposal

1-7
Chapter : Project Proposal
 Executive Summery
 Project Description
 A Case Study
 Background/ Situation Analysis
 Our Micro-credit Model
 Project Objectives
 Desired impact and outputs of the project
 Risk Management Plan
 Project Organization and Staffing
 Project work Plan
 Detailed Budget Requirements

7-15 Literature review
1.1 What is a Project Proposal?
A proposal is a document that outlines a detailed plan on a project that NGOs propose to a donor seeking funds to implement it. Usually, the donors that provide funding to NGOs request proposals in a pre-set format. Although this format can vary from one donor agency to another, it usually has a standard framework.
Proposal writing can be a complex job. Even if you are proposing just one page concept note about your project idea, you need to be prepared with your full proposal at least in your mind. A proposal is not just a document you submit to a donor agency. More than that it is an exercise for you to understand your own idea, your own project so that you are clear in what you wish to do and you can easily respond to donor questions about it.
1.2 Why a Project Proposal?
A project proposal is quite important, as it will determine whether a project is:
• Feasible
• Beneficial

1.3 What should be the size of a proposal? How long or short should a proposal be?
It is very difficult to give an exact idea on the size of a proposal because it varies from donor to donor. Some donor agencies prefer to receive just a proposal of not more than one page, at least initially. Other donor organizations like the USAID and the European Commission can request lengthy proposals that can run into several pages. Nevertheless, the size of a proposal does not matter as much as its content. The donor agency is mostly interested in the idea you propose. If the idea is interesting and innovative, then the proposal can be of any length and it can be accepted.
If you are applying for an open call for proposals, then you need to follow the proposal guidelines given in there. These guidelines usually have a limit on the size of the proposal or the application form you submit.
If you are directly approaching a donor agency for funding request, then it is best to prepare a letter of inquiry with a short concept note (not more than 2 or 3 pages) explaining an outline of your project idea, an overview of your organization and its work and an indicative budget.
1.4 How can I start writing a proposal?
If you are working with a community, you suddenly realize that it is facing some problem or the other. It could be extreme poverty, poor healthcare, lack of government services, malnutrition and inadequate education and so on. You try to go deeper into the problem to understand why the problem exists. For example, if the community is facing health problems, you realize that it is may be because of lack of health centers or the community members are not aware about basic health and hygienic care. Then you understand that the cause of the problem is that absence of healthcare facilities or poor knowledge of the community on health and hygienic care. When you speak to the community, you come to know more and more about the causes of the problem they face. So now you have a clear idea what you need to address. It could be setting up healthcare centers where your community resides or it could be just providing healthcare information to them.
When you are aware of the cause of the problem, you can start writing the proposal. You can develop a background to the problem by referring to its cause and how it can be addressed by your intervention.
1.5 Whom should you involve in planning and writing a proposal?
A proposal is an essential marketing document that helps cultivate an initial professional relationship between an organization and a donor over a project to be implemented. The proposal outlines the plan of the implementing organization about the project, giving extensive information about the intention, for implementing it, the ways to manage it and the results to be delivered from it. A proposal is a very important document. In some cases, a concept note precedes a proposal, briefing the basic facts of the project idea. However, the project idea faces a considerable challenge when it has to be presented in a framework. The proposal has a framework that establishes ideas formally for a clear understanding of the project for the donor. Besides, unless the ideas are not documented in writing, they do not exist. Hence, a proposal facilitates appropriate words for the conception of an idea.
Proposals have recently become more sophisticated. This reflects the increased competitiveness and larger resources existing in the NGO sector. The trend of inviting proposals for contracting development programmes began with the allotment of substantial resources for development that triggered off the mushrooming of NGOs around the world.
Enormous opportunities existing in the sector have led to the trend of making proposal writing a profession. Proposal writing poses many challenges, especially for small and unskilled NGOs. Here, we discuss some basic and necessary information required for developing a proposal.
1.6 What is a project rationale in a proposal?
A project rationale is an argument in favor of implementing the proposed project by your organization. It gives a detailed explanation of why the project is required in the area. In other words, it describes theissues and problems the community is facing and how your organization and the proposed project will address them with the funding support expected from the donor. This section of the proposal can be very crucial because it is here that you need to convince the funder that why it is absolutely necessary to get the grant for implementing the project.
This section of the proposal is also referred to as project background since it gives an idea of what has been happening in the area prior to implementing the project. You can also refer to this section as the ‘problem statement’ since it analyzes the problem in an in-depth manner.
An important part of this section should be a short description of your organization. After the donor has read and understood the problems and issues of the area, it may want to know why your organization is the best choice for addressing them. In the description of the organization, make sure you refer to your previous projects implemented similarly and/or you can highlight the innovative idea you have for this project.
1.7 How should the goals and objectives be written in a proposal?
There is a fundamental difference in goals and objectives in a standard proposal. Usually, a goal is an overall objective. It is mostly general in sense and remains unachievable. However, objectives are very specific and they have to be achieved.
The qualities of a project goal are:
- A project goal is very general, high-level and relevant only in the long-term.
- A project goal cannot be achieved by the project itself.
- Usually, there can be only one project goal.
For example, ‘To alleviate poverty’ is a project goal which cannot be achieved by the project alone. Although a project can mention it as its overall goal, it only gives a direction to which it is heading towards. There can be other projects by other organizations (or even by the government) in the same area working for the same goal. Besides, as you can see, in the entire life cycle of the project, it is almost impossible to achieve such a goal.
On the contrary, objectives are very specific and they have to be achieved by the project. The goal can be broken into several objectives. Like for example, ‘to increase household incomes of poor families; to ensure their access to credit; and to improve their technologies for better productivity’ can be objectives that are specific, measurable, achievable, relevant and time-bound.

1.8 Format for submitting project proposal

Section 1: project summary

Give project title, PI name, Co-PI from the Institute and Co-PI from ISRO side (mandatory to speed up the process of project sanction), name of Institution (s) involved before writing the summery.
Written in telegraphic language, the summery should give an account of (a) research objectives (b) methodology to be adopted and (c) expected outcome of the project. This summery may be published in the list of on-going projects and will be widely circulated amongst scientists/scientific institutions interested in the subject. In order to facilitate the circulation, a list of potentially interested individuals/institutions (with addresses) is required to be furnished along with the proposal.

Section 2: Origin of the Proposal

Identify the stimuli, which prompted preparations and submission of the project proposal to the STC. The source of stimuli could be other reports published by STC, proceedings of a special workshop/ seminar, announcements by ISRO on Thrust Area Programmes, earlier project etc. In all such cases, give specific details so that the source is clearly identifiable. If the project has no such origin, please state so.

Section 3: Definition of the Problem

Please give precise technical statement of only those problems which the project is expected to cover with the specified duration (normally 3 years). Do not include statement, instead, a straightforward definition of the problem.

Section 4: Objectives

Instead of an essay, it is suggested that the objectives be spelled out point by point in telegraphic language keeping in view the definition of the problem outlined in section 3.

Section 5: Desired Impact and Outcomes of the project

• What are the long term effects of the project? (Economic, social, cultural, institutional, environmental, technological, etc.)
• What are the specific measures to sustain the project?
• What are the linkages with other initiatives or reforms in the sector and other development or governance concerns?

Section 6: Risk Management Plan

• What are the risks and factors that may hamper or hinder the successful implementation of project activities and achievement of project outputs?
• What are the measures that would mitigate the adverse effects resulting from such risks?

Section 7: Work plan/ Methodology

It is essential that from this statement the other experts in the field should get a clear understanding of the research technique to be employed in the project as distinct from data/sample collection activities and routine activities. Further, the description should indicate precisely how the stated objectives will be achieved. Discuss different methods of approach in order of priority.

Section 8: Time schedule

On the basis of work elements identified earlier, the time schedule should be drawn. Here specific indications of milestone will help in periodic evaluation of the progress of the project. It is once again cleared here that lead-time for creation of infrastructural facilities be computed on realistic basis.

Section 9: Budget

Summery of the budget (year wise) may be prepared after filling on Budget for manpower and Budget for permanent equipment. Give realistic estimate of costs of different items involved. While doing so, please ensure that all the constraints have been taken note of and time of different activities properly estimated.
Project proposal

Project Proposal on “Micro-Credit for Sustainable Growth”

2.1 Executive summery
The objective of micro credit is poverty reduction, creating employment or to bring a sustainable growth in society. But the interest rate and other cost are high moreover almost every organization are trying to maximize their direct and indirect profit for these reason micro credit fails to achieve it’s objectives. Interests on repayments begin at around 15%, but it is a flat rate and can soon rise to anything between 40% and 100%. NGOs are non-profit organization as well as non-government organization, but for its sustainability it asks higher rate of interest.
We need sustainable development in poverty reduction but if we want organizational growth and ask a higher interest then these objectives won’t be achieved. So, we need such a micro credit model which is only concern on beneficiaries. That is why here the project proposal is. This proposal explores the idea of finding a suitable and sustainable model for poverty redemption through a new micro-credit model. Here in Bangladesh, the birth place of micro-credit concept, there are hundreds of NGOs to provide micro-credit to poor women and unemployed youth. But the scenarios are still same. Poverty aren’t decreasing significantly as they are required. The objectives aren’t being achieved. Unemployment isn’t reducing as expected. The NGOs are concern to bring growth in their position. They hardly think for beneficiaries. That’s why the objectives of Micro-credit aren’t being achieved. To bring a suitable and sustainable growth in poverty redemption and reducing unemployment this new micro-credit model will play a vital role.

A Case Study:
Babul Maji(30), a rickshaw puller, was passing a happy time with his wife and a child.
In 2005, he took tk.30000 loan from Grameen Bank and bought a Tomtom(an auto rickshaw). Riding tomtom, he would earn tk.500-700per day. He became so happy and dreamt for a growth in life within a very short time. He paid his 1st loan’s all installment. He dreamt build a house. That’s why, in 2006, he took another tk.35000 loan from Grameen Bank again. In the mean time, Babul took loan from other two NGOs named ASA & Shongkolpo Trust. He took Total tk.50000 as from Tk.25000 each. He started making his house. But had to make payment of tk.1500-1800per week as loan installment. He had trouble in making payment, so further; he took loan from other two NGOs. Thus, installment increased further. So, he went to Local Mohajon(Lender who asked high interest), Mr. Aminul Thalukdar and Bashir Member and took loan in weekly basis. Gradually, he fell in the LOAN-TRAP. In 2012, Babul had a loan liability of Tk.150000. Monthly interest to pay @ tk.20000.
Thus, a Potential self employed individual(Babul Maji) became a Bankruptcy. In 2013, he had lost his house property to repay installments, he had to sell his tomtom for half price.
Now, he lives in a slum of Chittagong city. In front him, there is a uncertain future of himself as well as his two child.
Thus, Micro credit as a death-trap killed a future of a potential self-employed Individual(Babul Maji).

2.2 PROJECT DESCRIPTION
• Project Title: (Micro-Credit for Sustainable Growth)
• Type of Project: (Poverty redemption /Constructive and motivational training/ Creating employment mission, etc.)
• Project Proponent/s: (Name of organization)
• Number of Beneficiaries: (minimum 2000)
• Project Beneficiaries: (Rural poor, women, youth, etc.)
• Location of Beneficiaries: (Vill:hasondondi,chandanaish, Ctg)
• Date of Implementation/Duration: (December,2013/5years)
• Area of Project Implementation: (Vill:hasondondi,chandanaish, Ctg)
• Budget Requirement: (tk.2000000)

2.3 BACKGROUND/SITUATION ANALYSIS

Bangladesh a country of 150 million people is very densely populated. Majority of the population is living in the rural areas and they living under standard, they are poor and most of them are unemployed. Micro-credit is rapidly expanding in Bangladesh. But it can not achieve its original goal due several technical reasons which are not expected. To achieve the goal and objectives of micro-credit, stated project to undertake. Important issues are:
1) Poor people often take up the loans without thinking of the consequences, and that 60% of borrowers take loans from several sources.
2) There is no understanding that it might take 10 or 20 years to repay their loan.
3) Furthermore, from the weekly repayments, some lenders deduct 10% of that payment for compulsory saving schemes - money the company then uses to lend to other people.
4) Interests on repayments begin at around 15%, but it is a flat rate and can soon rise to anything between 40% and 100%.
5) Selling of borrower’s asset at half market price to repay the loan they take.
6) Money is not always used as capital investment.
7) Rough justices as Villagers are sending their children to work to help them make the repayments, Selling agricultural land is also considered as a last desperate option.
8) There are some agencies which even take their payments from relief material.

Our Micro credit Model(concept):

There are hundred of micro credit concepts all over the world. One aims at small business. Another aims at women employment when other one aims at Poverty reduction. Every single Micro credit model have their distinct goals and objectives.
Here, there is our new Micro credit model titled as “Micro credit for Sustainable Growth”. The Model aims at reduction of poverty of rural area where people are really suffering from poverty, malnutrition, living a miserable life due to unemployment or lack of capital to employ them into a small business. Our model aims at reducing rate of unemployment from a community by motivating, by providing training and by supporting them to employ them to self-employment.

Initial Capital from Lender

Disbursement of loan to targeted beneficiaries Collecting installment & Savings Residual Balance after Operating cost and Interest paid to lender

Share it to beneficiaries to build their own capital Make them solvent Employ the capital to other project

It includes:

1) Providing loan at lower interest rate to those who have real need of that.
2) Giving direction to lead in a right way.
3) Encourage them to savings.
4) Provide a higher interest rate on their savings.
5) We are not concern about the organizational sustainability.
6) We are concern on sustainable growth in beneficiaries’ life.
7) We will work to ensure a capital for beneficiaries of their own after the project period for which they don’t need to pay any interest and it is technically possible.
8) We ill work for ensuring the fundamental objectives for which Dr. Mohd. Yunus brought the concept of Micro-credit.
9) We will bring the beneficiaries out from the Loan liability

2.4 PROJECT OBJECTIVES

1) To be focused on beneficiaries’ good
2) To provide loan to genuine poor with potentiality
3) To make them solvent within project period
4) To provide them motivational training
5) To provide them proper direction in decision making
6) To bring trust that we are working for their betterment
7) To bring a sustainable growth in poverty redemption
8) To motivate young generation to be entrepreneur

2.5 DESIRED IMPACT AND OUTCOME OF THE PROJECT

If the project is implemented then the beneficiaries will be effected by following impact and outcomes:

• The beneficiaries will be trained and motivated.
• They will get proper direction to make right decision on with what they should work.
• Sustainable growth will be achieved
• Poverty will be decreased in a desired expectation.
• Unemployment will be reduced.
• Standard of living will be increased
• The original goals and objectives of micro-credit will be achieved.
• The beneficiaries will be solvent enough to lead their life after project period.
• There will be an impact in their family, social life.

2.6 RISK MANAGEMENT PLAN

Following risks and factors that may hamper or hinder the success of the project:

• Loan to those people who don’t have potentiality.
• Loan to those who are not poor or solvent.
• Mismanagement of resource allocation.
• Loan to those who has bad motives.
• Failure in selecting project beneficiaries.
• Inability of beneficiaries in continuing payments of loan installment. And
• Other uncertain condition

2.7 PROJECT ORGANIZATION AND STAFFING

Office/Staff Designated Responsibilities

Project Manager(hired) planning, execution and closing of any project, creating clear and attainable project objectives, building the project requirements, and managing the constraints of the project

Trainer(hired) Providing constructive and motivational training.
Supervisor Supervise whether all scheduled task are being done in due time or not.
Field worker Arrange the training session and collect information. Weekly Installments collection.

2.8 PROJECT WORK PLAN

PHASES OF THE PROJECT ACTIVITIES OUTPUT / TARGET PERSON IN CHARGE
Phase 1: Selecting project beneficiaries 100 people who really poor and has potential Supervisor
Phase 2: Providing motivational and constructive training To get a feedback that they are motivated Trainer
Phase 3: Disbursement of loan among beneficiaries Ensure proper disbursements Project manager and supervisor
Phase 4: Workshop on investment Ensure potential growth Trainer and supervisor
Phase 5: Collecting installment Collecting Regular installment Field worker & supervisor

Phase 6: Refreshment training to beneficiaries Make them motivated and encourage them to savings Trainer
Phase 7: Make report of transactions Fair calculation Supervisor
Phase 8: Award successful borrower Appreciate successful beneficiaries Project manager
Phase 9: Handover interest free Capital See them solvent Project manager
Phase 10: Closing the project Successful ending Project manager

2.9 DETAILED BUDGET REQUIREMENT

Budget Description Amount Needed Proposed Source/s
Provide loan to 100people @tk.20000 Tk.2000000 Palli Karma-Sahayak Foundation (PKSF)

Expected Cash inflows and outflows of the project:

Expenses Amount
Tk. Receipts Amount
Tk.

Interest to lender
Operating cost
Balance(after 1st year)

Interest to lender
Operating Cost
Balance(after 2nd year)

Interest to lender
Operating cost
Balance(after 3rd year)

Interest to lender
Operating cost
Balance(after 4th year)

Interest to lender
Operating Cost
Balance(after 5th year)
100000.00
200000.00
2300000.00 Opening Fund:

Interest receipt

Opening Fund(2nd year):

Interest receipt

Opening Fund(3rd year):

Interest receipt

Opening Fund(4th year):

Interest receipt

Opening fund(5th year):

Interest receipt 2000000.00

600000.00 2600000.00 2600000.00

100000.00
210000.00
2680000.00
2300000.00

690000.00 2990000.00 2990000.00

100000.00
220000.00
3164000.00
2680000.00

804000.00 3484000.00 3484000.00

100000.00
225000.00
3788200.00
3164000.00

949200.00 4113200.00 4113200.00 100000.00
250000.00
4574660.00 3788200.00

1136460.00 4924660.00 4924660.00

Balance(after 5th year)
Initial fund to transfer to other project

4574660.00
(2000000.00)
Fund handover to 100 beneficiaries@ tk.257466 per beneficiaries 25746600.00

We believe “Micro-credit for sustainable growth” model can bring a sustainable growth in society by reducing poverty, creating employment, and make beneficiaries solvent.