Course Details

Public Structural Investments

Academic Year 2022/23

NVA070 course is part of 2 study plans

​ NPC-ARS / ARA Winter Semester 2nd year

​ NPC-ARS / ARP Winter Semester 2nd year

The main focus of the course is the methodical suggestion of possibilities of elaboration of the feasibility study for public orders. Feasibility study is set into wider social frame, it leans on the development strategy of towns, town planning schemes, labour market etc. Then it leans on possibilities to obtain investment funds from native or foreign sources (the EU) – structural funds and evaluation of the efficiency of the public investment, achievement of its technical and economical parameters and fulfilling assigned objectives, regarding the specific features of towns’ economy.

Credits

4 credits

Language of instruction

Czech

Semester

winter

Course Guarantor

doc. Ing. Vít Hromádka, Ph.D.

Institute

Institute of Structural Economics and Management

Forms and criteria of assessment

course-unit credit and examination

Entry Knowledge

Knowledge about creation of feasibility study and eCBA public structure project.

Aims

Goal of this subject is to give enough information for independent work on feasibility study for project financed by public sources.

Basic Literature

Dufek, Z. a kol. Veřejné stavební investice. Praha: Leges, 2018 (cs)
Korytárová, J., Hromádka, V. Veřejné investice I. Brno, VUT FAST Brno, 2022 (cs)
Sartori, D. and coll. Guide to Cost-Benefit Analysis of Investment Projects. European Commission, 2014 (en)

Syllabus

1. Public and private sector (Pareto’s optimum, view of the efficiency)
2. Economic terms used in public projects (benefit, incomes, revenues, costs, expenditures, efficiency)
3. Basic methods of economic evaluation of public projects
4.–5. Cost-benefit analysis (CBA)
6. Time value of money, indexes of economic efficiency (NPV, IRR, FRR, ERR, B/C, …)
7. Risks and uncertainties (inflation expecting, states of the world)
8. Analysis of the sensitivity and probability
9. Financial resources for the public financing (domestic – public budgets, foreign – funding foreign resources, institutions)
10. Public orders submission – Act No. 137/2006 Coll., on Public Contracts
11.–12. Public business competition
13. Public orders evaluation. Choice of the best order (supply price, economic suitability)

Prerequisites

Knowledge of business plan processing in private sector.

Specification of controlled instruction, the form of instruction, and the form of compensation of the absences

Extent and forms are specified by guarantor’s regulation updated for every academic year.

Offered to foreign students

Not to offer

Course on BUT site

https://www.vut.cz/en/students/courses/detail/253543

Lecture

13 weeks, 2 hours/week, elective

Syllabus

1. Public and private sector (Pareto’s optimum, view of the efficiency)

2. Economic terms used in public projects (benefit, incomes, revenues, costs, expenditures, efficiency)

3. Basic methods of economic evaluation of public projects

4.–5. Cost-benefit analysis (CBA)

6. Time value of money, indexes of economic efficiency (NPV, IRR, FRR, ERR, B/C, …)

7. Risks and uncertainties (inflation expecting, states of the world)

8. Analysis of the sensitivity and probability

9. Financial resources for the public financing (domestic – public budgets, foreign – funding foreign resources, institutions)

10. Public orders submission – Act on Public Contracts

11.–12. Public business competition 13. Public orders evaluation. Choice of the best order (supply price, economic suitability)

Exercise

13 weeks, 2 hours/week, compulsory

Syllabus

1. Assessment of the cost-effectiveness of projects.

2. SWOT analysis - Case Study.

3. Analysis of problems and solutions.

4. Logical Framework - Case study. Determination of connection hypotheses. Entering the project.

5. Individual project work - Logical Framework.

6. Presentation of results.

7. Cost methods of project evaluation - Case Study.

8. CBA analysis. Cost-effectiveness of the project. Individual work.

9. CBA analysis. The economic efficiency of the project. Individual work.

10. – 11. CBA analysis. The sensitivity analysis. Individual work.

12. Presentation of results.

13. Credit.