Management and Technoeconomic Analysis of Projects in Public Sector
The Public Sector is in great need of determining the optimum use of scarce resources, involving the comparison of two or more alternatives, seeking to achieve a specific objective under the given assumptions and constraints, mainly monetary.
Projects in the Public Sector involve resources needed to be managed and coordinated. Project management describes the proper procedures in order to assure that tasks are completed on time and within the budget constraints, while the technoeconomic analysis takes into account the opportunity costs of the resources employed and attempts to measure, in monetary terms, the private and social costs and benefits of a project over the targeted community and the economy. This microeconomic approach enables the assessment of project’s impact on the society as a whole, providing an assessment of expected welfare changes.
The identification of the components and their relation to the basic phases is very important in project management. Other important issues are definition of goals, resource management, time management, technological management, project budgeting, quality management, risk analysis, cost management and, finally, project execution, evaluation and control. It is important, however, to remember that successful implementation of the initial schedule is subject to unexpected or random effects that are difficult to predict. In these cases, project management, should detect current and forecast future deviations between actual progress and plans, trace the source of these deviations and put the project back on course.
However, scarce resources force governments, especially within the borders of the European Union, to decide which projects should be implemented and which should not. In this framework, Cost Benefit Analysis (CBA) is explicitly required as a basis for decision making on the financing – or cofinancing by EU Funds – of projects. This analysis is based on a set of predetermined objectives giving a monetary value to all positive and negative welfare effects. The project is measured by indicators such as the Economic Net Present Value and the Economic Rate of Return, allowing for comparability and ranking for competitive projects or their alternatives. Sensitivity analysis, especially in projects implemented by Public Authorities, is very important in terms of identification of critical variables.
The aim of this PhD research is the development of a framework for evaluation of projects, in terms of techno economic, financial and social indicators. The results of this research will be of benefit for the community and provide a roadmap for managing and implementing those projects that achieve the highest welfare to both the community and its citizens.