or agencies). In a centralized setting, most of the data could be obtained from the central body responsible for oversight of public investment, such as an Investment Agency, a Ministry of Economy, Planning, or Finance and subsequently verified with the relevant spending agency(ies).
11:8. Assessors should aim to provide information on whether externally funded investment projects and investments implemented through structured financing instruments, such as PPPs, are included in the budget documentation, whether most investment spending is undertaken through the budget, and which parts are not included in the budget.
11:9. Assessors may want to obtain audit reports (both external and internal) on public investments or on programs that contain public investments. These reports may provide useful insights and evidence on the functioning of the public investment management system.
11:10. Certain important issues for public investment management are not treated explicitly by this indicator but are covered by other indicators.7 For example: (a) questions of whether investment projects are consistent with national or sector policy objectives is addressed by PI-16; (b) the quality of the procurement process— the extent to which a reliable, comprehensive procurement plan is prepared ex
ante—is covered by PI-24; and (c) whether a wellmaintained asset register that records accurate values exists, which is examined in PI-12.
Dimension 11.1. Economic analysis of investment proposals
DIMENSION MEASUREMENT GUIDANCE
11.1:1. This dimension assesses the extent to which robust appraisal methods, based on economic analysis are used to conduct feasibility or prefeasibility studies for major investment projects on the basis of an analysis of its economic, financial, and other effects; whether the results of analyses are published, and whether the analyses are reviewed by an entity other than the sponsoring entity.
11.1:2. There are different types of economic analyses with different coverage and areas of emphasis. Regardless of the approach to economic analysis, the objective should be to scrutinize and analyze the projects and ensure that selected projects are compatible with the available resource envelope and offer value for money.
11.1:3. Appraisals based on economic analysis should include analysis of economic externalities— sometimes referred to as social or economic costs and policy benefits—and health and environmental
Dimension 11.1. Scoring
|Score||Minimum requirements for scores|
|A||Economic analyses are conducted, as established in national guidelines, to assess all major investment projects and the results are published. The analyses are reviewed by an entity other than the sponsoring entity.|
|B||Economic analyses are conducted, as established in national guidelines, to assess most major investment projects, and some results are published. The analyses are reviewed by an entity other than the sponsoring entity.|
|C||Economic analyses are conducted to assess some major investment projects.|
|D||Performance is less than required for a C score.|
7 In fact, there are many elements of the broader public sector context that will affect project implementation. These include project implementation capacity, total project cost management (which relies on an accounting system that can capture and report project costs), facilities-operation arrangements, and ex-post evaluation rules and procedures.