Developing the Project Pipeline Project pipeline development Calls and project selection
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1 Developing the Project Pipeline Project pipeline development Calls and project selection Training to Managing Authorities, Summer 2014, Brussels Gerbrand van Bork, Ecorys Netherlands This training has been organised by EIPA-Ecorys-PwC under the Framework Contract Nr 2013.CE.16 B.AT 044. The opinions expressed are those of the contractor only and do not
2 Contents 1. Intervention logic: OP strategy to projects 2. Project pipeline development 3. Call for proposals 4. Project appraisal and selection criteria and process Exercise Relevant regulations and guidance document: Article 96(2)b.iii, 110(2), EU Common Provision Regulation 1303/2013 Good practices on project selection 2
3 1. Programme s intervention logic Strategy If we DO Result then we get Implementation Change Inputs Actions Outputs RESULTS for supported entities Policy results MS, region, sector, target group Delivery mechanisms Mechanisms of change Needs - Context Other factors 3
4 Project development and selection Reinforced attention to project selection, see CPR Article MA shall ensure that: operations contribute to achievements of specific objectives and results of priority criteria are non discriminatory and transparent general principles of equality, non-discrimination and sustainable development are taken into account Other conditions like e.g.: Beneficiary should receive docs with conditions for support for each operation Administrative, financial and operational capacity of beneficiary 4
5 2. Project pipeline development Why optimize the project pipeline? To obtain effective result oriented programme delivery with low administrative burden To obtain a sufficient number of good quality project proposals To reduce the number of ineligible / poorly elaborated proposals / minimise quantity of rejected work (admin burden) Enhance or mobilize weak potential applicants Improve planning Promote strategic thinking in development work 5
6 Factors determining quality of project pipeline Effectiveness of project promotion and awareness Capacity of applicant organisations and relevant involved public organisations, NGOs etc. Quality of partnerships Support and guidance to project applicants Transparent and quick decision-making processes Quality of advisory and consulting organisations Use of exchange of experiences (good practices) Use of critical constructive project appraisal 6
7 Capacity building of applicants Capacity of potential beneficiaries has to be assessed before decision for call is taken! Potential beneficiaries low capacity - capacity building and learning perspective has to be integrated into the strategy for the call or in the OP!! Capacity building can be promoted by: Encourage partnerships where less experienced organisations can learn from more experienced Use part of programme budget to support beneficiaries during implementation (training, coaching&advice, networking) 7
8 Guidance to applicants: good practice Establish a single reference point Provide consultations and quick feedback to applicants Provide web-based tools (instructions, electronic intake, self assessments etc.) Actively search for good projects ideas 8
9 3. Calls for proposals Stages in selection process Administration Applicant 1 Preparing and launching call 1 Informing 2 Guiding applicants potential 3 b Evaluating APQ 3 a Submitting application for pre - qualification (APQ) 3 c Selecting invitation to submit Evaluating applications / 5 4 proposals Submitting proposal / application 6 Selecting projects 2013.CE.16 on SF B.AT 044. The opinions expressed are those of the contractor only and do not Agreeing 7 7 support Agreeing support on SF 9
10 Strategic considerations for call organisation Single or two-stage application process? Continuous/ regular/ multiple or single intake of proposals? Other instruments via delegated selection of projects via e.g. financial engineering (not treated in this seminar) Capacity building of applicants? 10
11 Single application process (no pre-selection) Advantages Takes less time! Less administration burden for the call organizer Disadvantages Not possible to pre not select ineligible applications or applicant organisations Much larger workload for applicants if in vain, this can increase frustration 11
12 Two-stage application process (pre-selection) Advantage Pre-selection ineligible or weak applications, less workload for unsuccessful applicants Application quality can be improved in second phase (learning integrated) Suitable when small number of projects will be selected from high number of applications Disadvantage Longer process, more workload for MA or IB 12
13 Two stage process INFORMATION AND AWARENESS RAISING PHASE Learning /feedbacks to future planning activities Cluster of non-eligible project concepts indicates needs and demands APPRAISAL PHASE All project concepts Eligible for EU funding Non-eligible for EU funding but eligible for national funding Eligible for funding under OP Priority Eligible for funding from specific national resources Viable projects Viable projects Elaborated proposal Elaborated proposal Step 1 Step 2 Step 3 Step 4 Step 5 13
14 Continuous intake of applications Advantages Flexible, easier for applicants to schedule Easier to administer - very high number of requests for smaller grants / simple actions Disadvantages Comparability of proposals is limited: all applications above minimum standards receive grants until funds run out (difficult to foresee when will it happen) Continuous capacity required from MAs/IBs to administer proposal selection process Permanent calls seem better suited for simple projects, standardized instruments 14
15 Single intake of proposals Advantages Best quality proposals can be selected and granted (important especially in case of operations requiring innovation) Disadvantages Inflexible system: those missing the deadline are out Risk that budgeted funds not fully allocated if low number or low quality of proposals Temporary calls seem more appropriate when competition between projects is needed and needs in the sector evolve 15
16 4. Project appraisal and selection criteria The project appraisal process A. Eligibility Check B. Quality Check C. Approval Not eligible (Information to MC and Lead Applicant) Eligible 0 Knock out (objective of the project can not be fulfilled) 1 Very poor 2 Poor 3 Adequate 4 Good 5 Excellent Rejected Approval with conditions Approval 16
17 A. Eligibility check Documents submitted in due time Application is complete Application is fully and properly filled, signed, dated and stamped All Co-financing Statements are correctly filled and printed (draft) Partnership agreement Partnership, budget, etc. following rules (minimum / maximum partners?) 17
18 B. Quality check (Selection criteria) 1) Relevance of the proposal Content related 2) Coherence of the proposal 3) Quality of results 4) Administrative capacity Implementation related 5) Operational capacity 6) Financial capacity 18
19 Project Development and Appraisal Techniques Scoring Weighting and Ranking (SWR): a multi-criteria approach (MCA) Financial analysis Full Feasibility study or limited demand analysis/ market study Cost-effectiveness studies Impact assessment Environmental Impact Assessment (EIA) (required for infrastructure projects as in national law, EU EIA Directive) Cost Benefit Analysis (CBA) for major projects > 50 mln Euro (major projects TO7: > 75 mln Euro) 19
20 Appraisal Multi Criteria Approach for medium and smaller sized projects Scoring, Weighting, Ranking (SWR) method Way of systematic quantification: Identifying the different criteria and sub-criteria Assigning a weighting to each individual criterion based on importance of each criterion Rating a scoring each project numerically Ranking the different applications against each other 20
21 Scoring, Weighting, Ranking method Enables to decide where the cut-off point should be in the ranking Knock out criteria and other criteria A minimum score can be determined total for application or also only for selected criteria Does not cover eligibility criteria which should be evaluated before this step 21
22 Criteria Appropriate formulated and applied criteria are essential for selection of best projects Important categories of appraisal criteria: 1. Institutional assessment (implementation related) 2. Relevance of the project (and link with OP objectives) 3. Coherence of the proposal (Intervention logic and link with OP results) 4. Effectiveness, impact and efficiency 5. Risk assessment 6. Economic and financial assessment (efficiency) 7. Sustainability 8. Cross-cutting issues (gender, vulnerable groups, ) 22
23 Recommendations good practice selection criteria Involve stakeholders in preparation of the call Essential are performance oriented criteria Apply unit costs benchmarks Publish the criteria with the call Clear, simple and understandable criteria Consistency between criteria and information requested 23
24 Participants in selection and approval procedures Assessors (internal or external) Selection Committee Managing Authorities Monitoring Committee: examines and approves methodology and criteria for selection of operations 24
25 Recommendations good practice project appraisal Establish rules to prevent conflict of interest evaluators Transparency: publish responsibilities, outcomes scoring, approved and not approved applications etc. Set deadlines in the intake-appraisal-funding procedure Establish Reserve list Transparent appeal procedure 25
26 More information Article 96(2)b.iii, 110(2), EU Common Provision Regulation 1303/2013 Good practices: Project selection ERDF and CF. Background Study on project selection : and providing elements of good practice for er/studies/pdf/selection/selection_process.pdf 26
27 Exercise Setting up a Call and Selection Criteria Form Groups and discuss a) Read the hand out regarding an example Priority in an OP in the country of Ilustrian b) What type of project development process would you choose for the Priority (call or not, type of call?) c) Specify a number of project selection main criteria and specific sub-criteria which you think are relevant for the call and consistent with the OP priority 27
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