MAP Project Portfolio ReviewThree Years on – Lessons Learnt

Yiannis Giogkarakis-Argyropoulos, Head of Unit, TEN-T EAChris North, Head of Unit, TEN-T EA

TEN-T EA Project Management Workshop21 February 2013

Outline

• Original MAP Review scope & objectives• MAP Review conclusions• The follow up• The situation three years later• Lessons and experience

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MAP Project Portfolio review (1) A legal requirement of the TEN-T Programme Scope:Review in 2010 of the progress of projects selected under the 2007 Multi-Annual Programme call (92 projects) which account for: approximately two-thirds of total TEN-T budget

(€5.3 billion) 78% of total Multi-Annual work programme for

2007-2013 a total budgeted cost of €32.647 billion

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MAP Project Portfolio review (2)

Objectives:

assess extent to which the MAP is achieving its objectives, based on a review of the progress of individual projects

adapt project planning and EU contributions where justified

formulate overall conclusions and recommendations on the implementation of the MAP and the TEN-T programme

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Proposed scenario: Conditional extension up to 2015

- Allow projects to run up to 31 December 2015 subject to well-defined conditions- Completion of 78 out of 92 projects

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Conclusions of the MAP Review (1)

• Confirmation of EU support to the most criticaland complex projects within the TEN-T

• Prolongation of the eligibility period for amaximum of two additional years (end of2015), subject to specific political, technicaland financial conditions

• Cancellation of projects that did not startwithin the first two years after adoption of theCommission Decision

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Conclusions of the MAP Review (2)

Original intentions:

• Free and re-inject €311 million under thecurrent Programme

• Proceed with subsequent adjustmentswhenever the revised implementationplans or conditions are not met (to be re-injected into the Programme)

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MAP Review follow-up

• Modifications to the funding Decisions

• Continuous assessment of (the impact of) further delays

• Original planning: at least 40 amendments(43% of the population) of which 11 (12%)concerned reductions to the scope and to thecorresponding TEN-T contribution

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Practical aspects• First ever exercise for both sides• Application of conditions for extension• Reporting the real costs (taking care for

deflating cost overruns)• Choose the right timing for the amendment• All subsequent requests for extension limited to

31 December 2015

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Subsequent adjustments to the TEN-T contributions

• Initiated by the Agency• Applicable to all MAP type Decisions under the

current programme• Based on actual and updated planned progress

provided by the beneficiary• Realistic rather than overestimated figures• Last update in 2012

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The reality today• Further delays in implementation• Review conclusions had to be substantially

adjusted further to lower levels of TEN-Tsupport

• Amount released so far: €1.6 billion (instead of €311 million)

• 7 projects: cancelled• 33 projects: reduced (5 even twice)• 60 projects: required extensions• 1 project: funding reductions still to come

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Proposed scenario versus actual situation

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Current state-of-play of the MAP Review portfolio

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Current state-of-play of the MAP Review portfolio

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Current state-of-play of the MAP Review portfolio

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The results• Application of the same rules and approach for

the whole programme• Reinforced synergy and coordination between

TEN-T EA/Commission/beneficiaries• Optimal use of available resources• Improved budget implementation• Improved contacts with beneficiaries• Change of mentality

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The lessons (1/4)• Approach of Mid-Term Review confirmed:

• A pro-active assessment of progress is fruitful• Re-programming of support is feasible• Programme effectiveness is maximised• Should be applied to the next Programme

• Confirmed need for close and reinforcedmonitoring• Close monitoring of progress is essential• Only fruitful if the beneficiary is honest and

transparent

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The lessons (2/4)• Allocations of commitments in tranches was a

successful approach (applicable to bothprogramme and project level)

• "Committed money" is lost to the programme ifnot consumed

• Only "MAP type" Decisions provide the necessaryflexibility

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The lessons (3/4)• Emphasis on maturity

• Many of the projects selected in 2007 were notsufficiently "mature"

• Since 2009, greater emphasis on maturity in theselection process:

– Availability of Member State support– Identification of critical path– Procurement issues addressed

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The lessons (4/4)• Political considerations

• Co-operation of the Member States involved isessential

• Everyone "wins". Money is not wasted, benefits aremaximised

• Close contacts is a key success factor• Early detection of problems• Agency advice available

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Thank you for your attention!

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