NGO Another Way (Stichting Bakens Verzet), 1018 AM Amsterdam, Netherlands.


                                                                                    01. E-course : Diploma in Integrated Development (Dip. Int.Dev.)


Edition 01: 09 December, 2009



Tekstvak:         Quarter 3.










Study points : 05 points out of 18

Minimum study time : 125 hours out of 504


The study points are awarded upon passing the consolidated exam  for  Section C : The Model.



Block 8 : Economic aspects.


                            [Study points 03 out of 18]

[Minimum study time: 85 hours out of 504]


The study points are awarded upon passing the consolidated exam  for  Section C : The Model.



Block 8 : Economic aspects.


Section 1 : Project costs.[40 hours]


01.  General introduction. (02 hours)

02. General sketch of the financial structures.(02 hours)

03. Short budget analysis. (02 hours)

04. Budget organisation. (02 hours)

05. Description of the local contributions. (02 hours)

06. Method for calculating local contributions. (02 hours)

07. Relationship between local money and formal money.(02 hours)

08. The budget (02  hours)

09. The budget in a form requested by donors/financing parties. (02 hours )

10. Annual expenses (budgets per year). (02 hours )

11. Quarterly budgets. (02 hours )

12. Excel spreadsheets for the preparation of the budget.(02 hours )

13. The sustainability of the system.(02 hours )

14. Tenders. (02 hours )

15. The bank structures with limitations imposed on the project coordinator.(02 hours )

16. Auditing structures. (02 hours)

17. Protection of donors and financing parties.(02 hours )


Section 1 report :  (06 hours) .




Section 1 : Project costs.[40 hours]


09. The budget in a form requested by donors/financing parties. (02 hours )


The Model provides a version pf the budget in a version often indicated by donors .


Warning. Each donor and funding party has its own system and formula for the preparation of project budgets.


The typical budget provided in the Model has to be adapted to meet the requirements of individual donors and financing parties. These requirements can change over time. It is common sense practice to check to make sure that the version in question is the most recent one.


The required budget often has to be split up for each year of project execution. An example is given in the version often indicated by donors presented above. This has a set of columns for the whole project ; and separate sets of columns for each of the executive years. They may also want to link  the activities to project phases, and to know who is responsible for the execution of each operation.


This form of budgeting is due to the budgetary requirements often imposed  on financing agencies. They have to be able to divide their obligations by calendar years. This form of division is not natural to integrated development projects. The planned social, financial, productive and service structures take form each at its own rhythm. This can vary from project to project, from well-commission to commission, and from tank-commission to tank-commission.


Since budgets for integrated development projects are quite complex, the requirements of donors and funding parties are usually met by :


The budget in its standard form , showing the total amounts for each budget item.

A separate budget for the first year’s activities.

A separate budget for the second year’s activities.


The contents of the annual budgets are analysed separately in the next part  10. Annual expenditure (annual budgets ) of this section 1 Project costs.


In addition, an  year by year activity plan showing who is involved with which activity, and when, is also often required.


The material presented here is based on the requirement of  Europe Aid.


In  part  04. How the budget is organised the main budget groups (the horizontal blocks) and the vertical columns were examined. A comparison was made between a typical integrated development project budget and budgets of other projects carried out in your project area.


Choose the five most important donors for projects in your country. Obtain a copy of the budget of one of  the projects for each donor which has a period of execution of two or more years.


1. Research.


Make a template of the typical form of the budget for integrated development projects. Make five copies of it.


2. Research.


Adapt one copy of the template to the specific requirements of each of the five donors or financing parties. Accompany each  template with one page containing your notes (your commentary) of the  differences(eventually) encountered.. Note :this exercise is about the form of the budgets. You do not need to worry about the budget amounts..


Carefully conserve the results of your work for future use.


 Eighth block :  Economic aspects. 

 Eighth block :  Project costs.

Main index  for the Diploma in Integrated  Development  (Dip. Int. Dev.)

 List of key words.

 List of references.

  Course chart.

 Technical aspects.

 Courses available.

Homepage Bakens Verzet


"Money is not the key that opens the gates of the market but the bolt that bars them."

Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228.


“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th annual NGO Conference, United Nations, New York 7th September 2005.



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