Proceedings of the 13th Meeting of the
Transport and Communications Working Group
8
Conclusions
The following aspects are highlighted by the conceptual framework as a possible ‘ideal type’ of
transport project appraisal system:
 a legal requirement to evaluate all investment initiatives;
 a system of “checks and balances” defining clear and separate roles;
 multistage evaluations with various filters and supervisory and quality control
mechanisms;
 a system of norms, procedures and methodological support including the centralized
definition of accounting prices;
 ex-post evaluation to identify forecasting errors or managerial problems.
Questions and Answers
Question: Interplay among the different stakeholders is a relevant aspect in project appraisal
systems, what is the exact meaning of the incentive perspective in this context?
Answer: The consultant highlighted that the incentive arguments relate to the need of the
institutional framework in place to provide the right and strong motivation to individual players
(i.e. public decision-makers, project promoters, independent consultants, and funding agencies)
not to strategically misrepresent the project and adopt opportunistic behaviors. The promotion
of good quality project appraisal report and the actual use in the decision-making process is a
matter of norms and checks conducive to virtuous behaviors.
Question: How can we ensure that the perspective of the private investor is sufficiently
reflected in the project appraisal of PPP schemes?
Answer: In a PPP scheme due consideration shall be given to the incentive of the private
operator to invest in the project without ensuring an undue profit which results in a waste of
public resources. This can be done by the complementary use of financial and economic analysis
ensuring that the project is good for the society and, at the same time, appropriate financial
resources are provided to make it sustainable. Different discount rates can be suggested for the
financial and economic analysis to reflect the different opportunity costs of the private investor
and the society.
Question: How can we ensure that good project appraisal are actually used by the decision
makers and not only political considerations are reflected in the project selection?
Answer: Technical experts have the duty to appraise the decision-makers and show the
advantages of adopting forward-looking perspective and evidence-based decision-making in
selecting and implementing transport projects. Although technical and objective arguments may
be more complex and difficult to manage in the public debate, educating the power and citizens