© EIPA – Robin Smail / Capacity-building 1

Brussels,11 October 2006

Capacity-building for managing Capacity-building for managing Structural FundsStructural Funds

Robin SmailSenior Lecturer

© EIPA – Robin Smail / Capacity-building 2

Steps in the project pipeline (1)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

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Steps in the project pipeline (2)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

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Situation analysisSituation analysis

CompetitivityCompetitivity

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 ScoreboardRefer to Regional Innovation Scoreboard

• expenditure on RTD: total; business exp.; public sector (NUTS 2)(NUTS 2)

• employment in high-tech sectors (NUTS 2)(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 MarketLabour Market

•employment levels (and trends)employment levels (and trends)- employees and self-employed, FT - employees and self-employed, FT and PT, men and women, by ageand PT, men and women, by age

•employment rates (and breakdown) employment rates (and breakdown) (NUTS 2)(NUTS 2)•employment by sector employment by sector (NACE classification)(NACE classification) and and trends in key sectors trends in key sectors (NUTS 2)(NUTS 2)•turnover rates; skill shortagesturnover rates; skill shortages•unemployment structure and trends unemployment structure and trends (NUTS 2)(NUTS 2)

by duration, age, gender, geographyby duration, age, gender, geography

Territory & MobilityTerritory & Mobility

• accessibility and connectivity (NUTS 2 data)(NUTS 2 data)• remote areas• modes of transport: road, rail, waterways

(NUTS 2 data)(NUTS 2 data)• transport of freight• air transport and passenger numbers

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Publicity & InformationPublicity & 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

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Project ideas, partnerships &Project ideas, partnerships & co-financeco-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?

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PProject development stepsroject 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?

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economic appraisaleconomic 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…)

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economic appraisal – from gross jobs to net jobs: economic appraisal – from gross jobs to net jobs: use benchmarks for estimationsuse 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

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• 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 Programme indicators are built-up from project indicatorsfrom project indicators

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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…

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* evaluation will determine gross to net jobs

Core IndicatorsCore Indicatorsand and evaluationevaluation

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The LogframeThe 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