Programme Management and Project Selection in the Border, Midland and Western Region of Ireland Mr. Gerry Finn Director 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 used Greater 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 FEATURESLIMITATIONS 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) CriteriaScore (0-5)WeightRevised 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 Impact Source: Fitzpatrick Associates: Review of Project Selection Procedures and Appraisal Techniques in the CSF May 1999

Project Appraisal – Scoring, Weighting, Ranking (SWR) CriteriaScore (0-5)WeightRevised 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 Details BMW Regional Assembly The Square Ballaghaderreen Co. Roscommon Tel. (353) Fax. (353) Website: National Development Plan: Website: EU Structural Funds: Website: