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Programme Management and Project Selection in the Border, Midland and
Western Region of Ireland
Mr. Gerry FinnDirector
Border, Midland and Western Regional Assembly Ireland
September 2004
Slide Overview
Project Selection and Appraisal Techniques
Examples of Project Appraisal in Practice
Management and Monitoring of Projects by Implementing Bodies
Project Selection – General Principles
Programme and Measure Objectives Economic Impact – taking account of Deadweight and Displacement Financial Viability – PPP and productive Sector Projects Cost effectiveness Environmental Impact Impact on equality of opportunity Impact on poverty Impact on rural development
Programme Complement set out specific criteria to be usedGreater degree competition especially aid to private sector
Source: National Development Plan 2000 – 2006 P. 212
Principal Appraisal Techniques
Financial Analysis Cost Benefit Analysis Cost Effectiveness Scoring ; Weighting ; Ranking Multi Criteria Analysis (M.C.A)
Cost Benefit – Mandatory for projects €50m + – Recommended for other large
infrastructural projects
Source: Fitzpatrick Associates: Review of Project Selection Procedures and Appraisal Techniques in the CSF. May 1999
Cost Benefit Analysis
Source: Fitzpatrick Associates: Review of Project Selection Procedures and Appraisal Techniques in the CSF May 1999
APPLICATION KEY FEATURES LIMITATIONS
Essential to demonstrate the economic costs and benefits of projects from the perspective of the national economy or social welfare
Comprehensive
Comparison of costs and benefits, including non-market.
Treatment of risk.
Can include estimation of multipliers
Impacts require common monetary numeraire
Data demands can be considerable
Can have inadequate political or social acceptability
Project Appraisal – Scoring, Weighting, Ranking (SWR)
The criteria against which projects will be appraised are identified
A weighting is assigned to each criteria based on importance (no weighting = equal value)
Each project receives numerical score against different criteria
Different project applications ranked against each other
Source: IPA: Implementation and Administration of E.U. Structural And Cohesion Funds in Ireland – Procedures Manual: P. 65
Value for Money - Definitions
Additionality: Measure of economic output i.e. amount of project output compared to what would have occurred without intervention
Deadweight: Opposite to additionality i.e. could project have proceeded without State Aid
Displacement: Activities that would or could have been financed by the private sector are displaced by publicly subsidised activity
Cost-effectiveness: Projects selected contribute the largest amount possible to policy objectives at the minimum possible cost.
Source: Fitzpatrick Associates: Review of Project Selection Procedures and Appraisal Techniques in the CSF. May 1999
Project Appraisal – Scoring, Weighting, Ranking (SWR)
Criteria Score (0-5) Weight Revised Score
ECONOMIC IMPACT
Contribute to OP Objectives
Impact on Employment
Risk of Deadweight
Risk of Displacement
Cost Effectiveness
NON-ECONOMIC IMPACT
Contribution to OP Objectives
Environmental Impact
Impact on Equal Opportunities
Spatial ImpactSource: Fitzpatrick Associates: Review of Project SelectionProcedures and Appraisal Techniques in the CSF May 1999
Project Appraisal – Scoring, Weighting, Ranking (SWR)Criteria Score (0-5) Weight Revised Score
Commercial/Financial Appraisal
Market Need
Projected Sales Demand
Financial Projections
Risk of not Achieving Forecasts
Access to Matching Funding
Ability of Promoter to Achieve Forecasts
Long-term Exchequer Implications
Scheme-Specific Criteria
Total Score
Project Selection – Transparency Issues
Public Promotion Eligibility Criteria Published Criteria for selection available Weightings for criteria available Decisions made by Committee Conflicts of interest avoided (Declarations) Information given to unsuccessful applicants Competitive or queuing basis Appeals system in place
Project Appraisal – CEB Procedure
CEB County based structure Legal Entity – Company limited by guarantee Directors – State Sector; Social Partners;
Elected Members Independent Evaluation Committee
• Business Expertise• Banking Expertise• Private Sector Expertise• Other – Technical
Source: Roscommon CEB Procedures Manual
Project Appraisal – CEB Procedure
Idea Initial contact with County Enterprise Officer Business Plan / Formal Application Site visit to project Appraisal by CEB staff Assessment by Evaluation Committee CEB Board decision
Roscommon CEB Procedures Manual (12)
Project Appraisal – CEB Criteria for Assistance
You must show:• that the project is commercially viable• That there is a market for the product or service• That adequate finance will be available to fund
the project• That the promoter has the management and
technical capacity to handle the project• That the promoters tax affairs are in order and
proper company structure
Project Selection - Tourism Procedure Initial call for applications – 2 stage process Assessement of Proposals
• Initial review by Regional Tourism Organisation• Assessment and scoring of proposals by Fáilte Ireland• Assessed by Fáilte Ireland Assessment Committee• Considered and approved by Product Management
Board Shortlisted applications complete detailed proposal form Evaluation by Fáilte Ireland evaluation team Assessment Committee review recommendations Product Management Board consider – approve, defer or
reject
Project Management – Role of Implementing Body
Design of overall scheme Seek applications by public advertisement Review and approval of project applications received
from project promoters Ongoing monitoring of projects Reviewing progress expenditure, final project costs
and irregularity reports if applicable Review, approval and payment of project manager
payment claims Prepare claims for Managing Authority on to Paying
Authority
Source: IPA: Implementation and Administration of E.U. Structural And Cohesion Funds in Ireland – Procedures Manual: P. 65
Project Reporting to Monitoring Committee Introduction – description measure, commentary on
progress Expenditure to date Performance Indicators – progress against targets North/South Co-operation Information and Publicity Requirements Horizontal Issues – Environment; Gender Equality;
Poverty; Rural Development Future Prospects Adjustments required Annexes
Contact DetailsBMW Regional AssemblyThe SquareBallaghaderreenCo. RoscommonTel. (353) 094 9862970 Fax. (353) 094 9862973Email: info@bmwassembly.ieWebsite: www.bmwassembly.ie
National Development Plan: Website: www.ndp.ie
EU Structural Funds: Website: www.eustructuralfunds.ie
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