Are you applying for EU funds for an infrastructure project or preparing a major investment for the public sector? Without a well-prepared cost-benefit analysis, your project will not pass the eligibility assessment. CBA analysis (cost-benefit analysis) is a mandatory part of project documentation for financing from structural and cohesion funds - and more than EUR 14 billion is available to the Republic of Croatia in the 2021-2027 period.
At Maneo, we have been preparing cost-benefit analyses for private companies, government institutions and public enterprises since 2010. Our team of 15 permanently employed specialists - economists, lawyers, auditors and accountants - ensures comprehensive project processing according to European Commission methodology, providing clients with realistic insight into the feasibility and social justification of their projects.
Do you need a CBA analysis for EU funds, an infrastructure project or a public investment? Request a free consultation →
What Is Cost-Benefit Analysis (CBA)?
Cost-benefit analysis (CBA), also known as analysis of costs and benefits, is a financial instrument used to quantify all costs and all benefits of a project - including those that cannot be directly expressed in monetary terms.
Unlike classic financial analysis, which observes a project solely from the investor's perspective, CBA analysis views the project from the perspective of society as a whole.
What does that mean in practical terms? When a public hospital, school or transport infrastructure does not generate direct profit, classic financial analysis would classify the project as unprofitable.
However, CBA analysis also takes social benefits into account - improved healthcare, shorter travel times, reduced pollution, new employment - and quantifies them in monetary values. This is precisely why CBA analysis is a fundamental tool of the European Union's Cohesion Policy.
Key results of CBA analysis include:
- FNPV (financial net present value) - shows the financial feasibility of the project
- FRR (financial rate of return) - internal rate of return from the financial perspective
- ENPV (economic net present value) - shows the social justification of the project
- ERR (economic rate of return) - rate of return from the perspective of society
- B/C ratio (benefit-cost ratio) - if it is greater than 1, benefits exceed costs
CBA Analysis vs. Feasibility Study vs. Investment Study - What Is the Difference?
These three documents are often confused, and understanding their relationship is key to choosing the right approach.
CBA analysis is a specific analytical tool - a methodological component that quantifies project costs and benefits from both a financial and economic (social) perspective. On its own, it is not complete documentation for a tender application.
A feasibility study is a comprehensive document that includes the technical, legal, organisational and economic analysis of a project. CBA analysis is an integral part of the feasibility study - its final and most important segment, providing the final feasibility assessment.
An investment study focuses on the financial justification of a project from the investor's perspective (NPV, IRR, payback period), but it does not include a broader economic analysis of social benefits. It is used for commercial banks or HBOR, while CBA is required for EU funds and public projects.
In short: CBA analysis is a tool within a feasibility study, not a substitute for it. If you need complete documentation for an EU call, you need a feasibility study that contains a CBA analysis. For smaller projects with commercial financing, a business plan or investment study is often sufficient.
Not sure what you need? Contact us - we will assess it free of charge.
When Do You Need a Cost-Benefit Analysis?
CBA analysis for EU funds
For projects applying to calls for grants from EU structural and cohesion funds, a CBA analysis is a mandatory part of project documentation - especially for major infrastructure projects in transport, environment, energy, water supply and education. The methodology must follow the European Commission Guide to Cost-Benefit Analysis of Investment Projects, which requires specific knowledge and experience in applying EU standards.
CBA analysis for the public sector
Municipalities, cities, counties and public enterprises use CBA analysis to make decisions on investments from public funds. When a project does not generate a direct financial return (a school, sports hall or municipal infrastructure), CBA analysis is the only way to quantify the social justification of the investment and justify the use of public money.
CBA analysis for public-private partnerships (PPP)
Projects involving cooperation between the public and private sectors require a CBA analysis that presents benefits for both sides - financial feasibility for the private partner and social value for the public sector.
CBA analysis for major private investments
Private investors also increasingly use CBA analysis for complex projects with a long-term horizon - energy facilities, production plants or tourist resorts - because it provides a more comprehensive insight than classic financial indicators such as NPV and IRR. CBA helps identify hidden risks and benefits that standard financial analysis does not capture.
What Does a Professional CBA Analysis Contain?
According to European Commission methodology, every CBA analysis must contain the following elements:
1. Context description and project identification. Definition of the problem, project objectives, analysis of the socio-economic environment (demographic trends, economic indicators, institutional framework).
2. Options analysis (alternatives). Comparison of scenarios: "without project" (business as usual), minimum intervention and full implementation. This step proves that the selected option is optimal.
3. Financial analysis. Projection of investment costs, operating costs and revenues throughout the entire project reference period (typically 15-30 years for infrastructure). Calculation of financial indicators: FNPV, FRR and financial sustainability.
4. Economic analysis. Conversion of market prices into economic prices (fiscal corrections, corrections for externalities), quantification of social benefits (time savings, pollution reduction, health improvement) and calculation of economic indicators: ENPV, ERR and B/C ratio.
5. Sensitivity analysis. Testing the project's resilience to changes in key variables - what happens if costs increase by 20%? If revenues fall by 15%? If implementation is delayed?
6. Risk assessment. Qualitative and quantitative assessment of project risks, identification of critical variables and preparation of a risk-management action plan.
Each of these steps requires specific knowledge of economics, financial modelling and EU methodology. Incorrect assumptions or incorrectly applied methodology are the most common reasons for a negative project assessment.
What Does the CBA Analysis Preparation Process Look Like at Maneo?
Step 1 - Free introductory consultation. We analyse your project, determine the type of documentation needed (CBA as part of a feasibility study, CBA for internal assessment or CBA for a specific call) and assess complexity.
Step 2 - Data collection. Together with you, we collect technical documentation, cost estimates, location data, demographic and socio-economic data, and existing studies or analyses.
Step 3 - Options analysis. We develop the "without project" scenario and project scenarios, analyse alternatives and select the optimal option with a reasoned explanation.
Step 4 - Financial model. We prepare a detailed financial model with projections for the entire reference period. We calculate FNPV, FRR and the project's financial sustainability.
Step 5 - Economic analysis and quantification of social benefits. We convert market prices into economic prices, quantify externalities and social benefits, and calculate ENPV, ERR and B/C ratio. This is the most demanding part of the process - this is where experience makes the difference.
Step 6 - Sensitivity analysis, risk assessment and delivery. We test the model's resilience to changes in key variables, prepare a risk-management plan and deliver final documentation ready to be attached to the application.
Average duration: 3-6 weeks, depending on project complexity and whether the CBA is prepared as a separate analysis or as part of a broader feasibility study.
Are you ready to launch your project? Schedule an introductory consultation →
Why Choose Maneo for Cost-Benefit Analysis Preparation?
Experience in the public and private sectors. We have prepared CBA analyses for private companies, government institutions and public enterprises - we understand the specifics of each sector and the requirements of different evaluation bodies. See our references →
Compliance with EU methodology. Our analyses are prepared strictly according to the European Commission CBA Guide. We understand sector specifics (transport, environment, energy, water supply) and apply the correct discount rates, conversion factors and valuation methods.
Multidisciplinary team. 15 permanently employed specialists ensure that the financial, economic, technical and legal aspects of the project are aligned. A CBA analysis does not exist in a vacuum - it must be consistent with the rest of the project documentation.
Comprehensive service under one roof. Alongside CBA analysis, we also offer preparation of complete feasibility studies, investment studies, business plans and full financial advisory. You do not need to coordinate multiple advisers.
AAA Certificate of Creditworthiness Excellence. Maneo is among the top 5% of companies in Croatia - proof of financial stability recognised by clients and institutions. What do our clients say about us? →
Frequently Asked Questions (FAQ)
The price depends on project complexity, sector, the number of analysed options and whether the CBA is prepared as a separate analysis or as part of a broader feasibility study. Contact us for a free assessment.
Financial analysis views a project solely from the investor's perspective - how much it costs and how much it earns. CBA analysis goes broader and quantifies social benefits and costs (environmental impact, health, employment, pollution reduction), providing a comprehensive view of the project's justification for public financing.
Yes, and that is a completely legitimate result. A negative ENPV means that project costs exceed social benefits - it is better to know this at the analysis stage than after investing. In that case, we propose adjusting the scope of the project, an alternative model or reconsidering the concept.
Not for every call. CBA analysis is mandatory for major infrastructure projects and for calls that explicitly require it. For smaller projects, a business plan or investment study is usually sufficient. Check the conditions of the specific call or contact us for a free assessment.
The reference period is the time horizon for which cost and benefit projections are prepared. According to EU methodology, it varies by sector: 30 years for railways, 25-30 years for road infrastructure, 30 years for water supply and 10-15 years for industry.
Absolutely. Although it was primarily developed for public projects, CBA analysis is increasingly used in the private sector as well - for complex investments with a long-term horizon, projects with an environmental component or investments that affect the wider community. It provides broader insight than classic financial indicators.
Secure a Positive Assessment of Your Project
In competition for EU funds and public financing, the quality of the CBA analysis often decides the fate of the project. Incorrect methodology, unrealistic assumptions or insufficient quantification of social benefits are the most common reasons for a negative assessment - and all of this can be avoided with a professional approach.
Contact us today for a free consultation. We will assess your project, determine which type of documentation you need and provide a clear offer.