| The Country Strategy for India 2005-09 sets out the parameters for IFAD lending over the COSOP period for India. Since, the performance-based allocation system rating (which determines allocation of IFAD resources to borrowing countries) for India is reasonably positive with regard to macroeconomic, rural sector and portfolio performance indicators the lending levels of IFAD to India would range from USD 110 million to USD 119 million for the current programme cycle of 2006-2010, which would permit the development of four relatively large interventions. This would also permit one programmatic approach each for women's empowerment, development among the tribal population, the development of a coastal fisheries project and the development of a highly vulnerable area encompassing the middle Gangetic plains. |
| In order to fully utilize the allocations for India the Country Programme builds up a pipeline of projects, which follows the IFAD project cycle. IFAD's project cycle is divided into six phases: |
|
1. Inception
|
| The inception phase is the first step towards formal inclusion in the project pipeline. In this phase, a project proposal based on the strategy outlined in the COSOP is drawn up, indicating: |
- Initial information on project objectives and rationale
- Characteristics of the project area and target group
- Preliminary identification of the main components, costs and financing
|
2. Formulation
|
| The formulation phase is when a detailed technical design is undertaken for the project. During this phase, IFAD prepares a feasible, sustainable project proposal with the participation of a range of stakeholders, most importantly potential beneficiaries and governments. Additional studies may be undertaken in this phase, e.g. on socio-economic characteristics of the target group or environmental considerations. IFAD and the government then review the technical feasibility of the proposal and examine policy considerations. |
3. Appraisal
|
| During the appraisal phase, the project design is fine-tuned under the guidance of IFAD's technical/policy review committees. An important part of this phase is the finalization of implementation arrangements. |
4. Negotiation and approval
|
| Loan negotiations are undertaken between IFAD and the Govt. of India, which is the borrower in all cases, using the project appraisal as the basis for the financing agreement. IFAD's Executive Board then reviews and if it so deems approves the IFAD loan for the project.Subsequent to Board approval, the financing agreement is signed between IFAD and the borrower. |
|
