Financial Management of Public Sector Projects

There are no defined prerequisites.

Classes adopt a theoretical–practical approach, promoting active student participation through discussion, analysis of real case studies, and the completion of individual and group assignments. The consolidation of knowledge aims not only at understanding the course contents but also at developing individual skills, critical thinking, and the ability to anticipate and assess future scenarios.

The use of digital technologies as learning and teaching support tools is also encouraged. In addition, the research component is fostered by building on the knowledge acquired throughout the academic programme, as well as through the extensive availability of economic and financial data and the analysis of the prevailing macroeconomic framework.

The objective of this curricular unit is to equip master’s students with the skills required for the critical analysis of public sector investment projects. It aims to provide students with theoretical and practical knowledge of the main methodologies used to assess economic and financial feasibility, under conditions of certainty and uncertainty, through the application of appropriate analytical techniques, in compliance with legal regulations and the principles of efficiency, effectiveness, and accountability.

 By the end of this curricular unit, students should be able to:

1. Explain the fundamental principles and practices of financial project management in the public sector;

2. Apply budgeting, resource allocation, and financial control techniques in public sector projects;

3. dentify and mitigate financial risks in public sector investment projects;

4. Analyse and evaluate the financial viability of public projects;

5. Develop practical financial management cases based on real-world case studies.

1. Introduction to Financial Management of Public Sector Projects

1.1 Differences between financial management in the public and private sectors;

1.2 Definition and importance of financial management in public sector projects;

1.3 The project life cycle in the public sector.

 2. Budget Planning and Resource Allocation

2.1 Preparation of project budgets in the public sector: concepts and methods;

2.2 Allocation of financial resources: techniques and tools.

 3. Financial Control of Projects

3.1 Cost variance analysis and cash flow analysis;

3.2 Monitoring of financial execution and reporting;

3.3 Financial performance indicators for public sector projects.

 4. Financial Risk Management

4.1 Identification of financial risks in public sector projects;

4.2 Methods for mitigating financial risks: insurance mechanisms and contractual clauses;

4.3 Financial scenario planning for adverse situations.

 5. Evaluation of Public Sector Projects

5.1 Financial feasibility analysis of projects;

5.2 Impact assessment: cost analysis, cost–benefit analysis, and return on investment.

 6. Practical Examples and Case Studies

Assessment may be carried out in two ways:

1. Continuous Assessment

Continuous assessment consists of a written test (30%) and a group assignment (two students) (70%).

1.1 The assessment of the group assignment includes the submission of a written report (50%) and an oral presentation (20%), delivered in class. Differentiation of individual marks within the same group will be based on the oral presentation. Assignments must be submitted through the Nónio platform.

1.2 Students successfully complete the course when the weighted average of the two assessment components results in a final grade of 9.5 or higher on a 0–20 scale. The written test requires a minimum grade of 5 out of 20.

 Note: Students who do not pass through continuous assessment are entitled to sit the resit examination.

Students holding a special status must inform the course instructor by the third week of the semester.

 2. Examination Period Assessment

 Assessment during examination periods consists of a single written examination.

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