2016-04-06
Benefits of nationally significant economic projects called into question
An audit conducted by the National Audit Office of economic projects deemed nationally significant has revealed that projects granted this status do not always significantly contribute to furthering the public interest. In addition to this, the majority of the projects are managed without any clear principles of management, and the possibility to terminate this status has so far not been established.
From 1999 to 2015, the status of nationally significant economic project was awarded by the Government to a total of 41 projects. Public auditors highlighted that such projects are selected without reference to any general identification or selection system, the process of monitoring project execution is complicated, and information about the implementation process, project status, achieved indicators and the general benefits of implementing the project is not collected or made publicly available. The auditors also found that only one (of 41) projects is currently being monitored.
Project implementation statuses vary. Around 47% of the projects are currently being implemented, even though in some cases this means that the process has taken over 15 years, 40% are complete, and 13% have been discontinued by executive bodies mid-implementation.
The executive bodies of nationally significant economic projects take advantage of exceptional terms, priorities and exemptions that facilitate their implementation process but that are not defined by law. Legal acts also do not provide for the possibility of terminating this status, even if a project is already complete, implementation has not begun or executive bodies fail to fulfil their obligations.
The National Audit Office has recommended that an official procedure be established for awarding the status of nationally significant economic project. It also urges responsible authorities to initiate a revision of economic projects that have been awarded the status of national significance by Government resolutions.
In view of the fact that the Government and the Ministry of Economy still do not have a general agreement on the means and deadlines for implementing the recommendations we have issued, we urge the Government to once again examine the issues facing nationally significant economic projects and submit a plan for the implementation of our recommendations by 16 May.