© EIPA – Robin Smail / Capacity-building 1 Brussels, 11 October 2006 Capacity-building for managing Structural Funds Robin Smail Senior Lecturer

© EIPA – Robin Smail / Capacity-building 2 Steps in the project pipeline (1) 1. plans, frameworks, regional & thematic priorities, programmes 2. priority axes, measures, project possibilities 3. institutional structures, procedures, timescales 4. publicity requirements and needs 5. developing project ideas, building partnerships 6. co-financing plans, financial packages

© EIPA – Robin Smail / Capacity-building 3 Steps in the project pipeline (2) 7. project feasibility, development and ex-ante appraisal 8. eligible expenditures 9. completing the application 10. getting selected 11. project / financial management & monitoring responsibilities 12. closing projects & programmes; audit; evaluation; policy feedback; exchange of experience

© EIPA – Robin Smail / Capacity-building 4 Situation analysis Competitivity GDP per capita (NUTS 2) economic growth (change in GDP) value-added (GVA) (NUTS 2) productivity in industry and economy (changes / trends) investment / FDI exports versus imports employment in growth sectors and high value-added sectors (NUTS 2) Refer to Regional Innovation Scoreboard expenditure on RTD: (NUTS 2) total; business exp.; public sector (NUTS 2) (NUTS 2)employment in high-tech sectors (NUTS 2) education levels (science and technology) ICT expenditure/investments extent of e-business and e-government applications for patents (EU, US) the geography of innovation: science parks; technopoles; academic spin-offs; FDI Labour Market employment levels (and trends)employment levels (and trends) - employees and self-employed, FT and PT, men and women, by age employment rates (and breakdown) (NUTS 2)employment rates (and breakdown) (NUTS 2) employment by sector (NACE classification) and trends in key sectors (NUTS 2)employment by sector (NACE classification) and trends in key sectors (NUTS 2) turnover rates; skill shortagesturnover rates; skill shortages unemployment structure and trends (NUTS 2)unemployment structure and trends (NUTS 2) by duration, age, gender, geography Territory & Mobility (NUTS 2 data) accessibility and connectivity (NUTS 2 data) remote areas modes of transport: road, rail, waterways (NUTS 2 data) transport of freight air transport and passenger numbers

© EIPA – Robin Smail / Capacity-building 5 Publicity & Information Publicity & Information Legal requirements, plus: Inform target groups / ultimate beneficiaries Stimulating interest & involvement, promote ideas, attract potential partners and funding market the aims, gain political & public support, help projects to be sustainable after funding.. But problems: some CPs not very well developed; evaluating actions? financing sources not clear very limited reference to CPs in Annual Reports illustration of concrete cases limited gaps for softer projects

© EIPA – Robin Smail / Capacity-building 6 Project ideas, partnerships & Project ideas, partnerships & co-finance co-finance Information meetings / seminars Project and subsidy scans, but Lisbon themes? Pre-proposals; partnerships developed? What of Project Advisory Groups – involving all stakeholders? Secretariats assisting with the development of a project? Selection procedures transparent?

© EIPA – Robin Smail / Capacity-building 7 P roject development steps P roject development steps Does it have a rationale? Does the project add value? What is the market failure? What are the options? Is it technically feasible? Have you completed the financial analysis? Is the public sector contribution minimised and the rate of return to the private sector fair?

© EIPA – Robin Smail / Capacity-building 8 economic appraisal economic appraisal What are the wider benefits (and costs) for the local, regional and national economy? - use Cost-Benefit Analysis… but we can use a cost-effectiveness proxy: COST PER JOB ( NET COST PER NET ADDITIONAL FTE JOB)...2,000 Euro or 20,000 Euro or 200,000 Euro??? Cost per new job. (Good public finance practices says this should be based on the total public sector subsidy…)

© EIPA – Robin Smail / Capacity-building 9 economic appraisal – from gross jobs to net jobs: use benchmarks for estimations the multiplier effect: 1. Direct Jobs (full-time equivalent jobs with project) 2. Indirect Jobs (purchases with suppliers) 3. Induced jobs (knock-on effect of income and consumption) 4. Construction jobs (10 year FTE) deadweight: what Funds were spent when not absolutely necessary to stimulate the activity displacement: subsidised activity can hurt others - local displacement relatively low - national displacement relatively high - retail/catering displacement relatively high - industrial displacement relatively low

© EIPA – Robin Smail / Capacity-building 10 CONTEXT indicators –they do not measure programme achievement; but they are good benchmarks PROGRAMME indicators: impact = intermediate and final (specific/global) to measure wider net benefits result = outcomes (project/programme benefits) output = (activities / inputs) resource = expenditure / inputs / activities BASELINE is starting point for context/impact TARGETS are wanted where reasonable Programme indicators are built-up from project indicators

© EIPA – Robin Smail / Capacity-building 11 CORE Indicators allow comparison… …and aggregation Jobs created* SMEs assisted / trainees trained and number of projects or activities... and can be defined for outputs, results, impacts… * evaluation will determine gross to net jobs Core Indicators and evaluation

© EIPA – Robin Smail / Capacity-building 12 The Logframe Project description Describe actions and effects Indicators Measuring the EFFECTS of the actions Source of Verification WHO, WHEN and HOW is the data is collected Assumptions Factors outside management control which may affect the causal linkages OVERALL OBJECTIVE PURPOSE RESULTS OUTPUTS ACTIVITIES