George Chabrzyk

Project funded byThe European Union

Government of the Republic of SerbiaEuropean Integration Office

PROJECT PREPARATION FACILITY

Methodology for the Selection & Prioritization of Infrastructure Projects:

an overview

Transport, Environment, Energy & Business Development

George ChabrzykSeptember 30 / BELGRADE


A project funded by the European Union



Objectives of Methodology

To consolidate the existing procedures for infrastructure development in Serbia and to use this as the basis for developing a standard methodology for the selection of strategically relevant projects.

To ensure that his methodology is generally applicable to all funding sources and specifically that it is relevant for IPA 2014-20

To develop a methodology which addresses the needs of both central and local governments.



Basis of Methodology

Relevance of the project for implementing national sector strategies

Adequacy of the institutional set-up and institutional capacity for project implementation

Project Readiness/ Maturity for implementation



Methodology Flow Chart

1. Collect existing infrastructure project pipelines (from project promoters, SLAP, line ministry databases, sector strategies)

2. Identify broad list of projects by completion of Project Identification Forms (PIFs) & registration on ISDACON database

3. Strategic Relevance Assessment (filtering step)

4. Short list of strategically relevant projects

5. Gap Assessment Analysis: Project scope (objectives, investment type, options identification) Technical elements (spatial planning & technical documentation) Institutional readiness (institutional framework & capacity) Financial /Economic elements (expenditure coverage /affordability) Environmental /Social elements (EIA, socio /environmental impacts

6. Final list of prioritized projects (to be included in ISDACON)

Project preparation according to Serbian legal requirements & EU procedures

2. Project identification form (PIF)

3. Strategic Relevance Assessment criteria (from PIF)

5. Gap Assessment Questionnaire /Gap Assessment Report Questionnaire + Project Documentation provide data for step 5



Step 1: Collection of Projects

Collect relevant infrastructure project pipelines for each sector /sub-sector (a ‘pipeline’ is a group of projects under preparation, usually at a mix of development stages)

Main sources are: Sector Strategy Action /Master Plans; Line ministry databases; SLAP database (municipality infrastructure) for projects in environment, business development & (partially) energy

Lists of projects addressing strategic priorities established & maintained by the responsible sector ministries

Collection of potential projects is carried out on a continual basis



Step 1: The Infrastucture Pipeline

Sector /Sub-sectorNumber

of Projects

Estimated Costs (M€)

Solid Waste 23 364

Water /Waste Water 21 449

Energy 42 6,144

Transport 31 7,607

Business Related 22 (52)

TOTAL 139 14,616



Step 1: Main Sources SLAP (projects in solid waste, waste water, business

development) Strategy and Policy of Industrial Development (2011-20) Spatial Plan of the Republic of Serbia (to 2020) Tourism Strategy National Sustainable Development Strategy (2008-17) National Programme for Environmental Protection (2010-19) National Waste Management Strategy (2010-19) Sewerage and wastewater strategic Master plan for the West

Morava river basin Energy Development Strategy (2005-15) Energy Community Treaty Development plan of PE Transnafta (2010-14) National Renewable Energy Action Plan (2013-20) First National Energy Efficiency Plan (2010-12) Biomass Action Plan (2010-12) National ten year network development plan (2013-22) Strategy of Railways, Road, Inland Waterways, Air and

Intermodal Transport Development (2008-15) General Master Plan for Transport (2010-27)



Step 2: IdentificationProjects collected will have had variable amounts of preparatory work carried out & will exist in various formats (the national pipeline ranges from projects at the ‘Concept Note’ stage to those with JASPERS reviewed Feasibility Studies and prepared procurement documentation)

In order to ensure that information collected by different ministries is coherent, consistent & sufficient for the assessment of strategic relevance (step 3), standard Project Identification Forms (PIFs) have been developed for each sector/ sub-sector.

PIF’s provide information on: (i) sector institutional set-up & policy ownership; (ii) consistency with national strategic frameworks & EU policies/ IPA priorities; (iii) strategic relevance criteria (pre-defined)

PIFs completed by project proponents & entered in the ISDACON database by the responsible ministries creating a ‘broad list’ of projects per sector /sub-sector

Identified projects = projects in the broad lists i.e. in PIF format registered on ISDACON



Step 3: Strategic Relevance Assessment

Strategic relevance = extent to which a project contributes to achieving sector policy objectives /targets

PIFs vary from sector to sector since the strategic relevance criteria (SRC) reflect sector-specific objectives

For sectors where there is no adopted national strategy, SRC are based on the relevant EU acquis (e.g. Urban Waste Water Directive)

Information provided in PIFs is used to assess the strategic relevance of projects in the sector broad lists.



Transport1. Demand /supply and origin /destination factors2. Relation to other transport corridor /routes3. Traffic safety and security of transport4. Economic factors

Energy1. Sustainable energy development 2. Enhanced competition3. Social impact (including economic and employment impacts)

Water /Waste Water1. Construction & upgrading of WWT facilities plus extension of collection

systems2. Construction & extension of water treatment facilities & water supply 3. Flood protection measures

Solid Waste1. Waste type and Waste collection 2. Waste recycling, waste treatment, waste disposal3. Impacts on environment, human health and local development

Business Development1. Export market and private sector demand2. Outputs and financial sustainability3. Employment generation

Step 3: Strategic Relevance Criteria



Step 4: Short Lists

Strategic relevance assessment is based on a weighted scoring system developed for the SRC in each sector /sub-sector

On the basis of this assessment short lists of the most strategically relevant projects are drawn up for each sector /sub-sector

Agreed short lists are entered into ISDACON

Short lists should be reviewed on a regular basis (say annually) since SRC are not fixed and will change as strategies are implemented and updated

Step 3 is regarded as a ‘filtering’ step since it is the basis on which broad lists are reduced to short lists



Step 5: Gap Assessment Step 6: Final Lists Gap assessment is the process of assessing the quality & completeness

of the project documentation (i.e. An assessment of maturity based on the ‘gap’ between existing documentation & requirements under Serbian law & for international assistance financing

Proponents of Shortlisted Projects provide further detailed information by means of specific ‘Gap Assessment Questionnaires’ (per sector /sub-sector).

GAQs address: Project Identification; Technical Maturity; Institutional Readiness; Financial /Economic Sustainability and Social & Environmental Impacts

Results of Gap Assessment Analysis are presented in ‘Gap Assessment Reports’ (including recommendations for future actions)

Final lists of prioritised projects are produced on the results of Gap Assessment results & provide the basis of project selection & the planning of further preparation activities.



Thank you for your attention !

George Chabrzyk – [email protected]

Marina Ilic – [email protected]

Petar Spasic – [email protected]

Technology

George Chabrzyk