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Value Engineering in Hungary Orlando, June 11 2012

Value Engineering in Hungary Orlando, June 11 2012. Zsuzsanna Kondor Director General Coordination Managing Authority National Development Agency , HUNGARY . The European Union and its Cohesion Policy Value engineering in Hungary

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Value Engineering in Hungary Orlando, June 11 2012

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  1. ValueEngineeringin Hungary Orlando, June 11 2012 Zsuzsanna Kondor Director General CoordinationManagingAuthority National DevelopmentAgency , HUNGARY

  2. The European Union and itsCohesion Policy Valueengineeringin Hungary The role of the National DevelopmentAgencyinfinancingdevelopmentprogrammes Valueengineeringcasestudies Challenges: preparingfor 2014+ Cohesion Policy Content of thepresentation

  3. The European Union and itsCohesion Policy

  4. <50 50 - 75 75 - 90 90 - 100 100 - 125 ³ 125 Differences in development in the EU-27 GDP per head as a % of the community average

  5. Disparities across the European Union *In US, this difference is only 2.5 and Japan 2

  6. How much does it cost? One third of the EU budget 2007-2013€347 billion over 7 years* *1 EUR = 1,31 USD inJanuary 2007

  7. The three funds target: ERDF (€201 billion): regional development, economic decline in industrial or rural areas, competitiveness and co-operation ESF(€76 billion):employment, social inclusion and tackling discrimination Cohesion Fund (€70 billion): environment and transport ……with overarching aim of “boosting growth and employment” What does the EU citizen get for this?

  8. Adaptability of workers and firms Social inclusion Capacity building Technical assistance What do we spend the money on? European Regional Development Fund and Cohesion Fund (€271 billion) European Social Fund (€76 billion) Employment Environment Transport Human capital Research/Innovation Information society Tourism Social infrastructure Culture Energy Institutional capacity

  9. Convergence 81.9% (regions lagging behind the most) Competitiveness 15.7% Territorial co-operation 2.4% Total budget €347bn, which will unlock up to €700bn A method based on what works: Programming, Partnership and Decentralised Management Who gets what?

  10. Convergence objective (Regions < 75% in EU 25) Objective 'Regional Competitiveness and Employment' Geographical Eligibilityfor Structural Funds Support 2007-2013 Convergence objective statistically affected regions Objective 'Regional Competitiveness and Employment' Phasing-in regions, "naturally" above 75% Index EU 25 = 100 Source: Eurostat

  11. Valueengineeringin Hungary

  12. Hungary Known of:

  13. Hungary • Known of: • 20 CVS • 19 PVM • over 1000 AVS • 11 Universities • 20-30 VM projects/year • SHVA 70 members

  14. VM & the Government 1949 L. D. Miles: VE

  15. VM & the Government 1949 1968 L. D. Miles: VE VE in Hungary

  16. VM & the Government 1949 1968 1991 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts

  17. VM & the Government 1996 1949 1968 1991 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts VE in Hungarian Public Procurement Act “The tender-owner might oblige the tenderer to utilize Value Engineering…” Hungarian Public Procurement Act, 2003. CXXIX. 53. § (4)

  18. VM & the Government 1949 1968 1991 1996 1997 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts VE in Hungarian Public Procurement Act VE in Hungarian Highway Design Act PrimeMinisters Office – Preparation of legislation

  19. Entities utilising VE PRIVATE SECTOR PUBLIC SECTOR • National Bank of Hungary • Nuclear Power Plant • Ministry of Social Affairs • Transport Agencies • National Development Agency • Hospitals • Telecommunication • Construction • Banks • Pharmaceutical • Many others NON-PROFIT SECTOR • Autism • Mentally Handicapped • Blind People • Hearing Impairment

  20. The role of the National DevelopmentAgencyinfinancingdevelopmentprogrammes

  21. Distributing EU funds…

  22. NSRF operational programmes (2007-2013)

  23. coordination of implementingStructural and CohesionFundsin Hungary USD billion 32,75 fortheperiod 2007-2013 15 operationalprogrammes - economic, social, publicadministration, regional, European territorialcooperationdevelopmentprogrammes etc. 52,000 projectsapprovedsince 2004 National DevelopmentAgency

  24. Valueengineeringcasestudies

  25. National Strategy of Supporting Autistic People, 2008 Implementationrulesfor EU funds, 2005 Data and documentshandling, 2009 Public procurementcontrolsystem, 2010 Comperativeassessment of EU and nationallevelregulations, 2012 Successfulprojects

  26. National Strategy of Supporting Autistic People, 2008 Project Owner: Ministry of Social and Labor Affairs Project Subject: Institute Development Conception 2008-2013 AFTER BEFORE Focus on supporting the autistic children Focus both on suporting the autistic children and adults

  27. Implementationrulesfor EU funds, 2005 Project Owner:National DevelopmentAgency Project Subject:Revision of ImplementationRulesfor EU fundedprojects AFTER BEFORE Focus onindividual, institutionalinterests Focus onprogrammeobjectives and commoninterests

  28. Data and documentshandling, 2009 Project Owner:National DevelopmentAgency Project Subject:Purchase of Sophisticated IT tool AFTER BEFORE Focus onvarioussources of information No changein focus!!!

  29. Public procurementcontrolsystem, 2010 Project Owner:National DevelopmentAgency Project Subject:Redesign of Public ProcurementControl System (reducerisks) AFTER BEFORE Focus onlargeprojects and established, institutionalpractices Focus onriskypublicprocurements and unifiedapproach

  30. Comperativeassessment of EU and nationallevelregulations, 2012 Project Owner:National DevelopmentAgency Project Subject:Reduceadministrativeburden, restrictions and speedupabsorption of funds AFTER BEFORE Focus on Focuson

  31. Reinforcesinstitutionalknowledge Enhancesintraorganisationalcooperation and team work Top and middle management levelsupport is a must Implementation of recommendations is also a credibilityissue Changesthewaywethink Experience

  32. Challenges: preparingfor 2014+ Cohesion Policy

  33. Currentcontext Crisis, austeritymeasuresinmanyMemberStates, less moniesto be betterspent Use of publicfunds, accountability, errorrateto be reduced Needforincreasedeffectiveness Challenges: preparingfor 2014+ Cohesion Policy

  34. The role of the EU 2020 strategy • Principles of thereformedCohesion Policy • Thematicconcentration • Resultorientation (negative and positivesanctions) • Integratedapproach, strenghtenedpartnership

  35. Thankyouforyourattention! Any questions?

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