Course detail

Public Structural Investments

FAST-TV06Acad. year: 2012/2013

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.

Language of instruction

Czech

Number of ECTS credits

Mode of study

Not applicable.

Guarantor

prof. Ing. Jana Korytárová, Ph.D.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Independent work on feasibility study and cost benefit analysis of the project financed by public sources. Ability basic orientation in the field of public procurement.

Prerequisites

Knowledge about creation of feasibility study in private sector.

Co-requisites

Knowledge of economic efficiency investment ratio (net present value, internal rate of return, pay back period), profit, sensitivity and probalility analysis.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

The condition of the credit is the development of given examples. The exam consists of a written test, written answers to questions and oral examination. For passing the oral exam, the student must obtain in the written part a minimum 50 points from 100.

Course curriculum

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)

Work placements

Not applicable.

Aims

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

Specification of controlled education, way of implementation and compensation for absences

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

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

JACSON, Peter McLeod a BROWN, Charles Victor: Ekonomie veřejného sektoru. Praha: EUROLEX BOHEMIA – edice ekonomie, 2003. ISBN 80-86432-09-2. (CS)
JACSON, Peter McLeod a BROWN, Charles Victor: Public sector economics. Michigan univerzity: Blackwell, 1999. ISBN 0631141219, 9780631141211. (EN)
KORYTÁROVÁ, Jana, FRIDRICH Jaroslav a PUCHÝŘ Bohumil: Ekonomika investic. Brno: Akademické nakladatelství CERM, s.r.o., 2002. ISBN 80-214-2089-8. (CS)

Recommended reading

OCHRANA, František; PAVEL, Jan; VÍTEK, Leoš a kolektiv: Veřejný sektor a veřejné finance - Financování nepodnikatelských a podnikatelských aktivit. GRADA Publishing, a.s., 2010. ISBN 978-80-247-3228-2. (CS)

Classification of course in study plans

  • Programme N-P-C-A Master's

    branch ARS , 2 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

prof. Ing. Jana Korytárová, Ph.D.

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)

Exercise

26 hod., compulsory

Teacher / Lecturer

prof. Ing. Jana Korytárová, Ph.D.

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.