1 Public projects – theory X praxis David Póč Department of Public Economics 2 Public projects Realization phase – possibility of higher efficiency while allocating the public finance Public projects Projects are seen as a systematic approach to the public finance allocation (especially investments activities) – 90ties def. in CZ Later def. – extension to also non-invest activities Broader view – public projects could be seen as any activities where the allocation from the public finances is taking place „Advantages“ of project approach Possibility of clearly link final „effects“ to the costs Application of possibility to compare different solutions – i.e. evolution of public project Monitoring of progress and options enabling to apply the broad spectrum of the controlling procedures 3 Public projects (2) Conditions/Signs of the public project (at least one condition needs to be applied): Substantial part of sources for realization come from direct or indirect public funding (like tax exceptions etc.) Realization is based on the other tools of economic policy (like different regulatory tools) There are significant externalities connected with project (like impacts on the market based on the project realization) Questions/Issues – definition of benefits and their comparison (for example intangible), possibility to compare the projects (different types of grants etc.), necessity to set up the precise the targets Setting of targets – while setting up the targets a lot questions need to be answered (stakeholders?, are we able to identify them?, why it is necessary to proceed with a project? etc.) and then it is necessary to control fulfillment of the goals (are not there new factors influencing the realization of targets? etc.) Project cycle In case that the decision about using project „optics“ is being made, the so called project cycle is common method to asses the different parts of the realization phase Example – V. Dočkal (2007) where 8 phases is being found: 1. Existence of a problem – setting up of targets (goals) in connection with possibilities 2. Identification of grant conditions in consensus with stakeholders – possible use of different grants/funds 3. Seeking for grant title/source and check of the project eligibility – match between goals and binding rules 4. Completee of application – administrative and other processes 5. Pre-realization preparation – handing out of other documents/materials, dealing with comments/changes 6. Realization of project – fulfilling of the conditions, following the goals 7. Closing of project and sustainability – use of the results 8. Identification of the new problems/risks – change of situation and necessity of reaction 4 Project activities Realization team Outputs and outcomes Budget To what detail the project proposal is being described? Project proposal – first step to get funded 5 Idea is completed and what to do next? Prepared project Proposal Parts of the project Annexes 6 Public projects in the CZ and their sources In the last 15 years there has been significant raise in „by purpose binding“ public finances sources allocated through the public projects Creation of new rules (legislature changes, competences issues etc.) „EU Phenomenon“ – relatively new area, allocation of the regional/cohesion funds – ESIF, relatively significant „volumes“ of grant finances Effectivity question – how these funds are being used in member states countries Issues connected with so called strategical governance and strategic management – different levels and layer of the public sector, use of the grant finances Role of ESIF in CZ and other countries 7 Thanks for your attention! Sources: Dočkal, V: Strukturální fondy EU – projektový cyklus a projektové řízení. Brno: Masarykova univerzita, 2007. ISBN 978-80-210-4390-9 Information from www.struktralni-fondy.cz 8