Achieving continuous project value in small hydropower plant projects by implementing Logical Framework Approach

Abstract

Small hydropower plants (SHPPs) play an important role in European energy and infrastructure investment market. They contribute to green energy development and reduction of fossil fuel usage, but also interact with social and environmental wellbeing of the community. Logical Framework Approach with Logical Framework Matrix (LFA/LFM) is a project management tool developed by international financing institutions (IFIs) for the purpose of ensuring reliability and monitoring of complex multi-stakeholder projects and investments. Existing sustainability problems arising from SHPP projects throughout Europe are caused by underperforming development of SHPP projects. The goal of this paper is to show that usage of LFA/LFM ensures sustainability and lasting project value throughout the project lifecycle in SHPP projects. Paper assesses key risks of developing and managing SHPP projects, tracing them back to the stakeholder assessment and project aim definition stages. Results of the paper show examples of SHPP projects in Serbia developed by using the LFA/LFM in some stages of its project lifecycle, compared to the ones developed without using LFA/LFM in its project lifecycle. It then shows in what way LFA/LFM helps avoiding these risks in future development and management of SHPP projects. Finally, it advocates for extensive use of LFA/LFM by investors in future SHPP projects, by highlighting the key advantages of using LFA/LFM throughout the SHPP project lifecycle.