Overview

Project Selection – General Principles

Principal Appraisal Techniques
Cost Benefit Analysis
Project Appraisal – Scoring, Weighting,
Ranking
Project Selection – Transparency
Issues
Project Selection – Selection Criteria
Overview
Project Appraisal
Project Financing
Tendering
Project Management – Role of
Implementing Body
Project Management – IT Based
System
Project Reporting to Monitoring
Committee
Value for Money – Definitions EIA
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
Principal Appraisal Techniques
• Financial Analysis
• Cost Benefit Analysis
• Cost Effectiveness
• Scoring ; Weighting ; Ranking
• Multi Criteria Analysis (M.C.A)
Cost Benefit Analysis
APPLICATION KEY LIMITATIONS
FEATURES
Essential to Comprehensive Impacts require
demonstrate Comparison of common
the economic costs and monetary
costs and benefits, numeraire
benefits of including non- Data demands
projects from market. can be
the perspective considerable
of the national Treatment of
economy or risk. Can have
social welfare Can include inadequate
estimation of political or
multipliers
Source: Fitzpatrick Associates: Review of Project Selection
Procedures and Appraisal Techniques in the CSF May 1999
social
(5)
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
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 Impact
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 Selection – Selection Criteria
• Included in Operational Programme
Objectives
• Measure specific objectives
• Economic Impact
• Financial Viability
• Cost-Effectiveness
• Horizontal Principles: Environment:
rural development
Poverty: Equality
• Scoring: Weighting: Ranking
Project Appraisal – Procedure
• Idea
• Initial contact
• Business Plan / Formal Application
• Site visit to project
• Appraisal by staff
• Assessment by Evaluation Committee
• Board decision
Project Appraisal – 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 - 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
Project Selection - Procedure
• Short-listed applications complete detailed
proposal form
• Evaluation by Fáilte Ireland evaluation
team
• Assessment Committee review
recommendations
• Product Management Board consider –
approve, defer or reject
Procedure – Monitoring & Evaluation
• Monitoring of Programme at three levels
• Implementing Agency
• Monitoring Committee level
• National (NDP/CSF)
• Grantee must retain all records and have
available for inspection
• Retain records of account for 6 years (Irish
Law)
• Retain records 3 years following closure of
programme
• Grantee must file annual financial
statements
Procedure – Monitoring & Evaluation
• Grantee must file annual financial
statements
• Grantee may have to provide evidence of
satisfactory management and financial
control procedures
• Work must comply to all planning
conditions
• Regular progress reports on work
• Security – Deed of Covenant or Mortgage
• Grant paid in two instalments – Interim
and Final
Paid eligible expenditure
Evidence matching funds
Check no grant aid from other sources
Project Financing
• Public Sector
–Project provision included in annual
budget estimates of Central
Government Department
–EU receipts also included
–Recouped in arrears by Exchequer
following verification of expenditure
Project Financing
• Private Sector
–Project Approved in advance of
commencement
–Project payments made in arrears on
basis of verified expenditure (stage
payments allowed)
–Balance of funding provided by
promoters own resources,
borrowings or other equity investment
–Equity and loan finance also included
Tendering
• Quotations and Tenders
– Up to €800 – Two oral quotations
– €800 to €8,000 – Two written quotations
– €8,000 to €16,000 – Three written
quotations
– €16,000 to €32,000 – Four written
tenders
– €32,000 to €160,000 – Full tender in at
least two regional newspapers and/or
national newspapers
– €160,000 and over – Advertisement in
Official Journal of EU and national
newspapers
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
Project Management – IT Based System
• Financial Control Systems
• Financial Tables
• Physical Indicators
• Annual Implementation Reports
• Other Reports by period county, field of
intervention
• Actual expenditure reports
• Claims for draw down
• Payment details
• Report on receipts and outstanding claims
• Funds allocation, dispersal instructions
Project Reporting to Monitoring Committee
• Introduction – description measure,
commentary on progress
• Expenditure to date
• Performance Indicators – progress to targets
• North/South Co-operation
• Information and Publicity Requirements
• Horizontal Issues – Environment; Gender
Equality; Poverty; Rural Development
• Future Prospects
• Adjustments required
• Annexes
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.