Registration Time: 13:15
Sessions Time: 13:30 - 16:45  including a 15-minute break
Speaker: Mr Glenn Fenech
Venue:   Online Webinar

Participation Fees (The Institute is now accepting payments via Paypal)
MIA Members: €40.00
Non-MIA Members: €75.00
Retired Members: €20.00
Students: €30.00

*Group bookings for 3 or more participants available.

Synopsis

“Cost-Benefit Analysis” is a term often used to refer to a common-sense approach of undertaking a task only if the benefits outweigh the costs. In the infrastructure/ project finance space, a CBA actually refers to a defined methodology of undertaking separate assessments of both financial and economic benefits and costs, and the aim of this session is to explain the key principles behind the CBA approach, and present a number of practical examples. Specifically, this session will focus on two main aspects:
(a) Need for and purpose of a CBA – When is a CBA needed, and what are its benefits/ applications?
(b) Typical CBA methodology – overview of the methodological steps adopted in undertaking a CBA, in line with financial and economic principles, and specific guidance issued by entities such as the EIB and the EC.

BACKGROUND INFORMATION

The private and public sector are both faced with the ultimate economic question – how to make the best use of their finite resources. This applies to the construction of new physical facilities and equipment, infrastructure, new processes or systems, and investments in other types of assets. There are various investment tools that aid in such decision-making, with a Cost-Benefit Analysis being one such tool. A CBA has the double role of looking at both the financial position of the project promoter, as well as the wider position of the community or economy as a whole. In this regard, private sector entities often stop at the first part (i.e. their own financial impact), which is typically referred to as a financial feasibility study. A CBA goes a step further by looking at the internalisation of wider benefits and costs that are likely to result from the project being looked into. As a result, this further part delves into the economic benefits and costs.

objectives of this session

The objective of this session is to discuss and attempt to answer the following questions:
When is a CBA needed? For which project/ entity is it mostly relevant? What are the benefits of adopting a CBA approach? What does the CBA methodology consist of? What are the quantitative aspects of a CBA relate to? How should the results of a CBA be interpreted?
These questions will be explored in the context of both the theoretical underpinnings (as indicated in CBA guidelines provided by the EC or EIB) and practical CBA case studies.

SPECIFIC TOPICS TO BE COVERED DURING THE SESSION

• Decision-making under a finite resource situation

• Investment tools

• CBA – its role

• CBA applications

• CBA methodology

• Project perimeter

• Options Analysis

• Financial Analysis

• Economic Analysis, including examples of economy benefit estimation

• Risk Analysis

• Common pitfalls

Target Audience

This seminar is relevant for all professionals, government officials and private sector officials, students and anyone having an interest in understanding how a CBA is developed, and its interpretation.

Speaker's Profile

Mr Glenn Fenech is an economist by profession, focusing on Valuations, Modelling and Economics within the strategy and transactions practice at EY Malta.Over the past 15 years he has been involved in a number of significant engagements for both public and private sector clients, including a feasibility study to analyse the financial and economic viability of hydrogen use in transport; a national study to empirically assess the adequacy and efficacy of unemployment benefits in Malta, as framed within the strategic objectives of the European Council Recommendation on access to social protection for workers and the self-employed; an evaluation to assess the impact on car registration tax and annual licence resulting from the change in emission test; co-authored Malta’s national employment policy 2021 – 2030; and developed a national tourism vision and strategy post COVID for the Malta Chamber of Commerce, Enterprise and Industry.
He has also supported several start-ups spread across different sectors, with the preparation of business plans and financial projections, as well as provided technical assistance with the identification and application of public and private funding opportunities.

EveNT CPE COMPETENCies

3  Core

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