1 cohesion policy 2007 - 13 adam abdulwahab evaluation network meeting brussels, 21 september 2009...
TRANSCRIPT
1
Cohesion Policy
2007 - 13
Adam Abdulwahab
Evaluation network meeting
Brussels, 21 September 2009
Ex post evaluation of cohesion policy programmes 2000-2006 co-financed by
the European Fund for Regional Development (Objective 1 and 2)
Work Package 10
“Efficiency: Unit Costs of
Major Projects”
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Cohesion Policy
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Overview of ToR - 1• Scope: sample of ERDF major projects• Task 1: Literature review• Task 2: Infrastructure projects
– Definition of “units”– Estimated unit costs and completion times– Actual unit costs and completion times– Analysis of cost overruns and time delays– Role of ex ante risk assessment
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Cohesion Policy
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Overview of ToR - 2• Task 3: Productive investment projects
– Costs of job created– Comparability of different cost per job figures– Estimated costs of jobs created– Actual costs of jobs created
• Task 4: Spreadsheet– Indicative benchmark ranges– Tool for further data input
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Practical Limits• Data availability => smaller sample
(altogether 96 projects)• Data quality
– Difficulty of determining costs of components– Variations are higher than expected
• Reasons:– Modifications of projects– Projects were not necessarily monitored in same
structure as they were approved
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Results of Literature Review• No public unit cost database
– One exception: ROCKS (World Bank) only roads and very limited European relevance
• No generally agreed definitions of unit costs for infrastructure projects
• Widespread “Optimism Bias”
• Job creation costs are determined only for (active) labour policy interventions
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Cohesion Policy
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Sector snapshot - Rail• Cost range (literature): 2.8 to 8.6 mEUR/km• Sample
– Project length: 8.9 km to 1,435 km– Unit cost: 0.3 to 49 mEUR/km
• Main reasons for cost overruns: environmental issues, statutory authorities, work suspensions
• Main reasons for delays: funding and construction
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Sector snapshot - Roads• Cost range (literature):
– Single carriageway: 0.7 to 2.0 mEUR/km– Dual carriageway: 2.7 to 8.7 mEUR/km– Dual carriageway, 3-lane: 36.4 to 91.3 mEUR/km
• Sample– Project length: 5.3 km to 144.2 km– Unit cost: 1 to 50 mEUR/km
• Main reasons for cost overruns: design complexity, environmental issues, statutory authorities
• Main reasons for delays: site preparation and construction
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Cohesion Policy
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Sector snapshot – Urban transport
• Cost range (literature): – Metro: 27 to 300 mEUR/km (highest: 483 mEUR/km)– Tram: 2.5 to 64 mEUR/km
• Sample– Project length: 4 km to 22 km– Unit cost: 5 to 120 mEUR/km
• Main reasons for cost overruns: permits/consents, procurement factors
• Main reasons for delays: funding and planning
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Cohesion Policy
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Sector snapshot – Water & Wastewater
• Sample not comparable to literature• Cost range (literature):
– Water treatment: 100 to 3800 EUR/m3/day– Water supply: 370 to 6800 EUR/m3/day
• Sample (relative homogeneity)– Project length: 85 km to 94 km– Unit cost: 0.75 to 2.11 mEUR/km
• Main reasons for cost overruns: design changes• Main reasons for delays: site preparation, funding,
permits/consents
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Cohesion Policy
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Productive Investment Projects
• Difficulty to determine employment effects• Mainly determined by
– Capital/labour ratio of industry– Technological characteristics
• Decision based on CBA not on job creation
Measuring cost of jobs creation is futile and will be discontinued
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Thank you for your attention