Case Study Border Midland West Source: Mr. Gerry Finn

Case Study Border Midland West

• Source: Mr. Gerry Finn

• Director

• Border, Midland and Western Regional Assembly

• Ireland

• March 2004

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

• (3)

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

• (4)

Cost Benefit Analysis

• Source: Fitzpatrick Associates: Review of Project Selection

• Procedures and Appraisal Techniques in the CSF May 1999

• (5)

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

• (6)

Project Appraisal – Scoring, Weighting, Ranking (SWR)

Project Appraisal – Scoring, Weighting, Ranking (SWR)

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

• (9)

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

• (10)

Project Appraisal – County Enetreprise Board 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
• (11)

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
• (13)

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

• (14)

Tourism 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

• 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
• (15)

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

• 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
• Note: All public aid must respect State Aid rules
• (16)

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
• Source: “A guide to Financial Management” – Special EU Programmes Body
• (17)

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 (18)

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

• Source: IPA: Implementation and Administration of E.U.

• Structural And Cohesion Funds in Ireland –

• Procedures Manual: P. 52 (19)

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

• (20)

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

• (21)

Contact Details

• BMW Regional Assembly

• The Square

• Ballaghaderreen

• Co. Roscommon

• Tel. [phone] Fax. [phone]

• Email: [e-mail]

• Website: www.bmwassembly.ie

• National Development Plan:

• Website: www.ndp.ie

• EU Structural Funds:

• Website: www.eustructuralfunds.ie