Registration Time: 13.15
Session Time: 13.30 - 16.45 including a 15-minute coffee break
Speaker: Mr Christopher Meilak
Venue: Lower Ground, Tower Training Centre, Swatar
MIA Members: €35.00
Non-MIA Members: €70.00
Retired Members: €15.00
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.
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.
Topics on the agenda
- 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
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.
Chris Meilak is a Certified Public Accountant, Economist and Executive Director at EY Malta, leading the Valuation, Modeling and Economics sub-service line in Malta.
Chris joined EY in 2006 and has carried out and managed (or taken a review role) a number of CBAs in various sectors. Chris holds an MA in Economics and the ACCA degree.
3 hours Core
Christopher MeilakAssociate Partner, Valuation & Business Modelling
Ernst & Young
Cost Benefit Analysis
Organized By: The Malta Institute of Accountants
Type of Event: Seminar
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Date & Time
Fri, 29 March 2019
13:30 - 16:45
Lower Ground, Tower Training Centre, Swatar,
Refer to Terms and Conditions.
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