1 / 19

Infrastructure Development in Romania

Infrastructure Development in Romania. Workshop. Project Life Cycle. by W J McCoubrey BSc CEng FICE FIEI FIHT FIAE Transport & Infrastructure Consultant Email: billy.mccoubrey@nireland.com. Internal Audit Unit

darena
Télécharger la présentation

Infrastructure Development in Romania

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Infrastructure Development in Romania Workshop

  2. Project Life Cycle by W J McCoubrey BSc CEng FICE FIEI FIHT FIAE Transport & Infrastructure Consultant Email: billy.mccoubrey@nireland.com

  3. Internal Audit Unit System Audits by Internal Audit Units at each level throughout cascade – Article 9.1 (a) CSF Financial Control Fund Unit Control Checks on Cohesion Fund Expenditure and Systems – Articles 9.1 (a) and (b), 10 and 11 Paying Authority Ministry of Finance Managing Authority Ministry of Finance Level 3 Responsible for completing Form B3 Intermediate Bodies Level 2 Responsible for completing Form B2 Final Beneficiaries Level 1 Responsible for completing Form B1 EU Commission Audits carried out by EU Commission Control Units Cohesion Fund Financial Controls Certification of all expenditure Certification of all expenditure Certification of all expenditure DoELG/MoT ESB/MET NRA/MoE Certification of all expenditure • Structure of financial controls to • comply with Commission Regulations (EC) 1386/2002 • Article 9.1(a) and 9.1(b) and the Protocol on • Internal Audit (IA) co-operation RDO / Councils

  4. Project Stages • 1 - Concept • 2 - Preparation • 3 - Application • 4 - Evaluation - Funding Appraisal • 5 - Decision - Approval for Cohesion Fund • 6 - Selection and Award of Contract • 7 - Contract Supervision • 8 - Payments • 9 - Modifications • 10 - Project Closure and Audit

  5. Eligibility Issues • General rules – open to interpretation • Commission Decision • defines total CF assistance limit and period of eligibility • Transparency • Expenditure incurred in eligibility period • Eligibility of expenditure • Public Authority employees • Land purchases • limited to maximum 10% of project eligible expenditure

  6. Eligibility Issues (2) • Treatment of Financial & other charges • Operating costs • Information & publicity measures • Car parks • Computerised management & monitoring systems

  7. Land Issues - Ireland • Land purchases • limited to maximum 10% of project eligible expenditure • typically 25 -30% of overall project cost • M50 SCRM; major disagreement with auditors • time period • land not used for project • robustness of systems for monitoring and audit trail • initial decision was to exclude land from eligibility claims • revised to now include land that has been directly used • only within boundaries of project • only payments made to landowners within eligibility period • excludes interest payments from CF claim

  8. M50 SouthernCrossRouteMotorwayLand Use

  9. M1 Lissenhall-Balbriggan • Commission Decision C (2000) 3518 • Period covered 07/07/2000 – 31/12/2004 • Decision covers expenditure during eligible period to value of € 41,485,702 with 85% funding being € 35,262,847 maximum • Expenditure covered – construction costs of 9.8km of main line, motorway including earthworks, pavement, drainage and fencing. • Elements of structures, interchanges, side roads and land acquisition not assisted

  10. M1 Lissenhall-Balbriggan • Commission Decision C (2000) 3870 • 15 October 2003; Amended original decision • Decision covers expenditure during eligible period to value of € 62,134,212 with 85% funding being € 52,814,080 maximum • Expenditure covered – building and construction costs of provision of elements of structures, interchanges, side roads, earthworks, pavement, drainage ,fencing and land acquisition of mainline motorway

  11. Land Acquisition example

  12. The FIDIC Rainbow • The Red bookConstruction • The Yellow bookPlant and Design-Build • The Silver bookEPC Turnkey Projects • The Green bookShort Form of Contract

  13. no no no no Contract Selection STRAIGHTFORWARD PROJECT EMPLOYER DESIGN CONTRACTOR DESIGN fixed price – lump sum little employer involvement no major unforeseen risks Plant and/or high unforeseen risks DISCUSS IN DETAIL Employer’s requirements with the Contractor and negotiate an appropriately modified FIDIC contract

  14. Stage 8 – Payments • Financial Control • IB assists FB with claims and payments • Payment of Contract Claim • FB responsibility, funds from IB • Eligibility of Claim • handled by IB FCU • Drawdown of Cohesion Funding • twice yearly by IB to Paying Authority • all funds lodged in Treasury • IB authorised to make payments direct to FB

  15. EU Commission EU Commission Control Units Claim from EU (twice per year) Payment of CF Expenditures Internal Audit Unit System Audits by Internal Audit Units at each level throughout cascade – Article 9.1 (a) Passed to Treasury Financial Control Unit Treasury Account Assembles all funds needed for Project Expenditure Paying Authority Ministry of Finance Managing Authority Ministry of Finance Level 3 IB Draws down payment due within contract limits Intermediate Bodies Level 2 Authorises Payment due DoELG/MoT Certification of all expenditure NRA/MoE Final Beneficiaries Level 1 Makes payment to Contractor RDO / Councils Project Contractor Claim from Contractor Cohesion Fund Finance Flows ESB/MET Contract Claim paid to Contractor

  16. Stage 9 – Modifications • Variations of Price • on materials for > 2 years contracts • Modifications to quantities or scope • to be avoided where possible • > 10 % probably requires new Decision

  17. Stage 10 – Project Closure and EU Audit • Completion of the contract • Project closure • Archival of documentation • Minimum of 3 years after Project closure • Can be as much as 7 years for Audit • EU Audit • Regulation compliance • Eligibility issues • Financial corrections – loss of funding

  18. EU Audit in Ireland • Cohesion I • N4 Collooney / Sligo, Stage II(CF No. 94.07.65.004) • Cohesion II • No audit reports available • Only 3 projects reported on • all under review • € 11 million financial correction, claimed wrong form of contract as price variation inappropriate • € 750.000 still under discussion of which € 100.000 issues relating to use of transport on 2 sites

  19. Infrastructure Development in Romania Workshop Issues • Maximising Grant Assistance • Project selection • Eligibility of expenditure • Delivery - Earning Grant • Contract selection • Contract administration • Ensuring Grant is Certified and Retained • Audit trail • Project closure • Archiving documentation

More Related