Quality infrastructure and investments in priority sectors drive sustainable development by reducing inequalities, and improving access to health, education, public services and income opportunities.

This guidance note underscores the importance of effective public investment planning and management. It recognizes the challenges governments of many Pacific Island Countries (PICs) face when designing and implementing investment projects. It draws on the experience of PICs over the decades to help improve investment outcomes through well designed project cycles that: 
•    ensure well formulated projects aligned to national strategies and stakeholders’ interests; 
•    use limited domestic funds wisely and leverages development partner support; and 
•    produce results that make tangible improvements.

This guidance note assumes a degree of prior knowledge of government systems and processes such as national planning, the annual budget cycle and aid management within which an effective project cycle can be placed. It provides an overview of investment planning within the public sector, and indicates issues and references which can be further researched and sourced for detailed learning and application. In this regard, this guidance is not intended to provide exhaustive coverage of the detailed aspects of public investment planning.

The guidance note recognizes the key technical stages for applying an effective investment and project cycle. However, as each PIC has a unique contextual situation, how the project planning cycle is applied will thus depend on the organizational, decision-making, and administrative arrangements that are in place.
Based on common technical issues and shared experiences in PICs, this document sets out a general guidance for practitioners aiming to improve the application of the investment and project cycle for better investment outcomes.

This guidance note is set out in specific sections which build on each step of the investment and project cycle. Section 2 sets the wider national planning and budget framework within which investment projects are a key component. The Section includes the role of the budget for guiding project choice and mobilizing funding.

Section 3 outlines the generic project cycle, in particular, the characteristics and important decision-making requirements at each stage of the cycle. The Section also highlights technical issues that can be applied to make each stage more effective, including: understanding the roles of different stakeholders; designing a logical result-based project approach; costing the inputs; measuring progress; identifying assumptions and risks; and assessing options for funding.