Project Cycle: Identification

This is the first phase of the project cycle. Identification proceeds against the background of the country development plan and the Bank? priorities. Identification of a project can come from several sources, including the Government, IDB missions and from contacts with other development finance institutions, UN agencies, or private sponsors.


In all cases, in order to be considered for financing by IDB, a project should have official Government endorsement? and must also meet a prima facie test of feasibility that technical and institutional solutions are likely to be found at costs commensurate with expected benefits.


Once identified, a project might be incorporated into a rolling three-year work program for the country concerned. The programme forms the basis for the Bank's future operations in that country and is used for budgeting the Bank's operations and for assuring that the resources are available to support each successive phase of the project cycle. The Three-Year Work Program is basically prepared through a Country Assistance Strategy Study (CASS) undertaken every three years. The program is subsequently updated in the light of requests that are received thereafter.

Some Governments have however agreed that such endorsement is not necessary for projects submitted by the Private Sector of their countries.