Value for Money Presentation


Value for Money Presentation

19 November 2020

The presentation to ADB staff and other participants on value for money (VfM) assessment and its relation to the Principles of QII, particularly Principle 2 on raising economic efficiency in view of life cycle costs. The objectives of the session were to understand the role of VfM in the project lifecycle, and understand the key factors driving VfM analysis – feasibility, affordability, and sustainability and efficiency. VfM assessment will determine if a project meets the basic criteria for selection as a PPP. VfM has both qualitative and quantitative dimensions that figure into a final decision. It is based on financial analysis resulting in an indication of the financial feasibility of a project, typically reflected in the project’s financial internal rate of return (IRR) and/or financial net present value (NPV).

The VfM also provides an economic analysis resulting in an indication of the economic feasibility of a project, typically reflected in the project’s economic IRR and/or economic NPV. The training presented these concepts based on best practices and provide guidance on:  

  •  where the VfM fits into the project infrastructure project cycle and QII principles; and  
  • use of VfM in project screening and developing the business case to justify a PPP project. 
Program and Learning Materials: 
Date Session / Activity Presentation Material Speaker(s)
19 Nov 2020 Opening Remarks Bruno Carrasco
19 Nov 2020 Introduction of Speaker and Moderator Sanjay Grover
19 Nov 2020 Presentation A Governance Approach to Value for Money Analysis
David Bloomgarden


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