Should “Current Situation” information be entered in the IP calculator if a project is intended to be financed by EU structural funds?
The financial and socio-economic analysis of the project is performed only by forecasting the difference between the current situation, i.e. only the change from implementing the project is assessed and the change is calculated and assessed only by financial and socio-economic indicators, so the current situation date is not included in the IP calculator (not possible), but only described in the prepared IP. Description of the current situation is needed for introducing the main financial and socio-economic situation assumptions, by noting the status quo. It should be noted, that if a project is implemented by the means of PPP, a new worksheet appears in the IP calculator (respectively, "A.0", "B.0", etc.) for including the current situation information associated with the project planned to be implemented. Analysis data in absolute numbers (i.e. the current situation + project implementation alternative selected) are used for further assessment (e.g. for calculating the maximum liability of the public sector or transferring risk analysis data to a partnership questionnaire) (the additional worksheets in the IP calculator are respectively named "6.1" and "6.2").
The project (investment) duration is a period for investing, e.g. a project is implemented in the education sector by investing in renovating the infrastructure of a practical training centre. Time for investments is 3 years – it is the project (investment) duration. The project reporting period is the number of years, for which the project investment, investment residual values, activity income, activity cost, tax, financing and socio-economic benefit (damage) prognoses are made. E.g. the reporting period of the mentioned project implemented in education sector is 25 years, 3 of which are years for making investments, the other 22 years – for using the infrastructure and performing activity.
Every project is unique, as well as the risk tolerance of the entity implementing a project, so exact values cannot be defined. The risk acceptance part is for the implementing entity to evaluate the possibility of reaching set value indicators and make rational decisions on implementing the project.
Does the organizer of a project have to motivate silent assumptions used for calculations in the IP calculator?
If the organizer of a project uses the assumptions set in the IP calculator for calculations, e.g. in cases of scenario analysis, then he does not have to motivate them – commenting on the results is sufficient. Motivation is mandatory if set assumptions are changed.
Should the “Noise Pollution Reduction” component be used for the socio-economic impact assessment if noise pollution would increase after investments are made and activity is started, although the project seeks to reduce the level of noise down to the primary level?
The pure beneficial (damaging) changes resulting from the project implemented are assessed in the cost-benefit analysis, i.e. the elimination of the damage caused by a project is not assessed as a benefit of the project.
What area coverage is recommended for assessing the benefits of components “Area Attractiveness Increase for Households” and “Area Attractiveness Increase for Business”?
Every project is unique, therefore every time the benefits under the components mentioned must be assessed individually. The area of impact must be motivated, but considering experience in many other projects, it is not recommended to assess benefits for a bigger territory than a ward or similar.
What kinds of solutions are involved in the existing property reconstruction/adaptation alternative?
The Law on Construction defines building reconstruction as a type of construction, the aim which is to adapt a building (change the load-bearing constructions of the building; change the external dimensions – length, width, height, etc.) Thus reconstruction of current property involves the possibility to increase the area of the property (building) and/or improve the functional and technical quality when the load-bearing constructions of the building are changed. Adaptation of current property can be changing the purpose of the premises, simple repairs, overhaul (changing the load-bearing constructions without changing the dimensions of a building – length, width, height, etc.).
What alternatives have to be assessed when the investment object type of the project being prepared is acquisition of property (e.g. purchase of social housing (apartment))?
The quality methodology defines a list of alternatives, which must be analysed in IP. If there is no such specific type of project when the type of investment object for the project is chosen, you need to determine, which investment object type alternative list the alternative is in. Respectively, if a property acquisition alternative is intended to be analysed by assessing the investment object type – construction of new buildings, then this investment object type must be chosen and alternatives to the investment object type mentioned analysed.