20 G U I D E TO C O S T - B E N E F I T A N A LY S I S O F I N V E S T M E N T P R OJ E C T S

Figure 1.2 The role of CBA in the appraisal of the major project

CBA RESULTS

Consistency and
completeness check

The methodology is not

The methodology is sound Need to check assumptions
consistent in some points
CBA Results are reliable and consistency of the analysis
CBA Results are unreliable

Assessment of
performance indicators

The project is not

FNPV(C) > 0 FNPV(C) < 0
in need of co-financing*

The project is in-

need of co-financing

EU
contribution
is not ENPV < 0 ENPV > 0
justified

EU grant EU
calculation contribution is
justified

* With exceptions, as set out in Annex III to the Implementing Regulation on application form and CBA methodology.
Source: Authors

Where the major project has received a positive appraisal in a quality review by independent experts, according to
Article 102(1) (Decision on a major project) of Regulation (EU) No 1303/2013, the Member State may proceed with the
selection of the major project and shall notify the Commission. The Commission has 3 months to agree with the independent
experts, or adopt the Commission decision refusing the financial contribution to the major project.

If the Commission appraises the major project in accordance with Article 102(2), the Commission shall adopt its decision on
the approval (or rejection) of the financial contribution to the selected major project, by means of an implementing act, no
later than three months from the date of submission of the information referred to in Article 101.

The co‑financing rate for the priority axis, under which the major project is included, shall be fixed by the Commission when
adopting the OP [Article 120 (Determination of co‑financing rates) of Regulation (EU) No 1303/2013]. For each priority
axis, the Commission shall set out whether the co‑financing rate for the priority axis is to be applied to the total eligible
expenditure (including public and private expenditure) or to the public eligible expenditure. As stated in Article 65 (Eligibility)
of Regulation (EU) No 1303/2013, the eligible expenditure of an operation, including major projects, is determined on the
basis of national rules ‘except where specific rules are laid down in, or on the basis of, this Regulation or the Fund‑specific
rules’. Also, specific provisions apply in the case of revenue‑generating projects (see box).