Approaches to Project Selection
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The document discusses project selection processes in Latvia for regional development projects. It provides examples of selection criteria used for various types of projects, including insulating houses to reduce energy consumption, establishing internet access points, paving roads, wastewater treatment, and developing separate waste collection points. Selection criteria assess how well projects meet specific policy targets and contribute to an integrated approach for balanced territorial development.
Approaches to Project Selection
- 1. Capacity building in Regional development in the Republic of Moldova MD10/ENP-PCA/OT/10 Approaches to Project Selection Inta Liepa Dace Gruberte 1
- 2. Main characteristics of the Project proposal selection process in Latvia • Specific, very targeted activities on the basis of wider policy targets • Line ministries, stakeholders, regional and local partners involved in elaboration of the Project selection criteria, not the selection of projects • Project selection process perceived as administratively technical work (comparison of various investment options in order to choose the best one) • Impact of each Project towards attainment of the common policy targets is assessed • Selected Projects are budgeted for the whole implementation stage of the particular Project 2
- 3. Project selection process in Latvia 3
- 4. Example: insolation of houses • Policy target for 2013: Decrease of energy compsumption in renovated houses – at least 15% in comparison with the situation before the project • Criteria: Thermal energy saving after renovation of the multi-apartment residential building is at least 20% per year of calculated energy efficiency assessment in energy audit added to project application 4
- 5. Example: internet access points Policy target for 2013: Number of newly created public internet access points – 400 (target in 2009 – 80). Criteria: As the result of project will be created and developed public Internet The minimal estimation 1 point access points: 2.1. 70 percent or more of the project planned results are the newly 2 established Internet access points; 2.2. 50 – 70 percent of the project planned results are the newly 1 established Internet access points; 0 2.3. requirements stated in 2.2.paragraph are not met. 5
- 6. Example: 1st class roads • Policy target for 2013: Passengers time saving resulting from paving of state category 1 roads – 611 734 EUR/year (target in 2009 – 218 741 EUR/year). • Criteria: Project’s transport economy cost (hereafter – C) – benefit (hereafter – B) ratio (in calculation users’ benefits are considered- time economy, reduction in vehicles’ operational costs, reduction in traffic accidents costs in relation to original Points= B/C investment and maintenance costs) B/C*5 Points will be awarded according to B/C ratio and coefficient - 5 . For example, if project’s B/C=2, it will be awarded in this criteria 2x5=10 points. 6
- 7. Example: wastewater treatment • Policy target for 2013: Share of inhabitants provided with wastewater management services according to the standarts – 64% (base value in 2004 – 9%, target in 2009 – 56%) Benefit from the project - cost efficiency analysis (number of inhabitants benefited from the project in terms of service quality and accessibility against eligible expenditure). • project cost efficiency analysis is less than average project application 1 selection round cost efficiency analysis and the difference is more than 20 % project cost efficiency analysis is less than average project application selection round cost efficiency analysis and the difference is between 10 % till 20% 2 project cost efficiency analysis is equal with average project application selection round cost efficiency analysis, exceeds the project cost efficiency analysis by 10% or is less than 3 the project cost efficiency analysis by 10% project cost efficiency analysis is more than average project application selection round cost efficiency analysis and the difference is between 10 % till 4 20% project cost efficiency analysis is more than average project application selection round cost efficiency analysis and the difference is more than 20 % 5 7
- 8. Example: policentric development • Policy target for 2013: Increase of ranks of territorial development index in cities and towns supported – by 3 ranks in each of the national development centres and by 5 ranks in each of the regional development centres (target in 2009 – by 1 rank for national importance development centres and by 2 ranks for regional importance development centres) • Criteria: - Integrated approach for urban infrastructure development is used in the project application creating the connection with development programme of the local government - Current job positions will be retained and new job positions will be created in the development centres (city) 8
- 9. Example: waste collection points • Policy target for 2013: 1 separated waste collection point for 500 inhabitants (base value in 2004 – 1 collection point for 2 000 inhabitants; target in 2009 – 1 collection point for 800 inhabitants) • Separate waste collection points (SCP) according with Cabinet of ministers approved regional waste management plans, one (SWC) point on 400 inhabitants: project application is not describing how many percentage of inhabitants of the municipal waste management region will be provided with service 0 planned SCPs will provide services to not less than 20 percentage of inhabitants within municipal waste management region 1 planned SCPs will provide services from 20 till 40 percentage (not including) of inhabitants within municipal waste management region 2 planned SCPs will provide services from 40 till 60 percentage (not including) of inhabitants within municipal waste management region 4 planned SCPs will provide services from 60 till 80 percentage (not including) of inhabitants within municipal waste management region 6 planned SCPs will provide services from 80 till 100 percentage of inhabitants within municipal waste management region 8 9
- 10. Horizontal mechanisms for ballanced territorial development - Regional quota (used for renovation of 1st class roads, water treatment, ect); - Vertical intervention for solving of particular problem (business support in specially assisted territories, support for growth poles); - Different co-financing rates (less developed territory can co-finance less) 10