Monitoring of Projects

About company Documents Annual report 2008

3. Report on Results of Monitoring the Implementation of Projects Financed with Resources of the Corporation
The primary goal of monitoring is to control the effectiveness with which funds the corporation has provided are used. The process for monitoring project implementation is based on data collection and analysis reporting made to the corporation by legal entities that have received financing with the corporation’s resources. In the process of monitoring, incipient deviations are fixed and the reasons and consequences of their occurrence during project/process implementation are analyzed. Management steps are devised to compensate for, or correct, the deviations.

The processes in the life cycle of a project may be united into two consecutive stages for monitoring:

  • Monitoring processes during pre-investment project evaluation—from receipt of requests from the applicant for project funding to decisions by management bodies of the corporation to finance/deny financing of these projects with resources of the corporation
  •   onitoring processes during project implementation (after a decision has been made at the pre-investment stage to finance the project with resources of the corporation) from establishment of project companies in whose management bodies representatives of the corporation participate to the departure of the corporation from the project in accordance with investment agreements among parties to the project company or as a consequence of the inability of one of the parties to further fulfill conditions of these agreements.

The corporation has created the necessary subdivisions to organize and ensure monitoring during the reporting period—the Project Office and the Department for Corporate Management and Development.

The purpose of monitoring at the pre-investment stage is to:

  • Control the structure of incoming requests for project financing with resources of the corporation and the realization of processes for evaluation of projects and preparation and decision making on investment in these projects
  • Improve processes and procedures at the pre-investment stage
  • Develop and adjust medium-term forecasts of the investment activities of the corporation

Monitoring at the pre-investment stage is conducted using over 40 indicators related to processes at pre-investment and project implementation stages. Some of the most important indicators are:

  • Total number of applicants and their profiles
  • Total number and investment characteristics of requests received from applicants (including applications for financing)
  • The status of requests (conformance with structure, format, and requisite elements of documents for applications)
  • The goals of project realization and the commercial opportunities they present
  • Classification features of the project: geography, production sector, and product sales
  • Distribution of evaluation of requests among teams of managing directors based on the status of the request and goals of the project
  • Compliance with deadlines for evaluating applications by authorized subdivisions of the corporation and with schedules for decision making by its management bodies on financing using resources of the corporation

The Web-portal and database of projects of the corporation, created during the reporting period, form the information foundation for collecting base data for monitoring.

The Web-portal makes possible automated interactions between the corporation and the applicant: exchange of information, instructions for applicants, and the presentation of requests to the corporation.

By the end of the reporting period, the database of projects contained documents of all requests received by the corporation during 2007-2008 and key indicators of processes/projects in a format amenable to monitoring.

In 2008, during the processing of preparations for monitoring the project implementation stage, the corporation defined the primary tasks and areas for monitoring, developed normative and methodological documentation regulating the introduction and conduct of monitoring, and prepared the informational support required to carry out monitoring.

The main tasks of monitoring at the implementation stage include:

  • Collection and verification of current information on project implxmentation
  • Preparation of consolidated reports on projects for various levels of management
  • Preparation of analytical materials on projects
  • Preparation of reports on the implementation of projects financed by the corporation

At the project implementation stage (investment stage), the corporation plans to conduct monitoring in the following areas:

  • Financial control over targeted spending of investment funds of project companies
  • Financial monitoring of actual funds spent under a project
  • Events monitoring, control over meeting deadlines and timely achievement of key objectives

The results of monitoring will be used by authorized bodies of the corporation in decision making related to the participation of the corporation in the project companies, which is regulated separately from the monitoring processes.

In the second quarter of 2009, the corporation intends to develop and implement a unified information system for planning and control of it project activity. This system envisions full integration and timely management of all monitoring data at all stages of a project's life cycle.

In order to carry out monitoring at pre-investment and project implementation stages, in 2008 the corporation developed internal normative and methodical documentation and corporate standards regulating the creation and functioning of project companies.

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