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Proceedings of the 13

th

Meeting of the

Transport and Communications Working Group

12

It is recommended to:

Execute a transport project appraisals along the entire

project design cycle

. Project

appraisals can be conducted at a very early phase of the project preparation when project

alternatives are still to be selected or carried out at later stages when the appraisal becomes

a justification for choices which have already been taken rather than instrumental for policy

learning and future planning. It is recommended to have project appraisal going along the

entire project design and preparation cycle, such that it can better inform and assist the

entire decision-making process

Establish a legal requirement

for transport project appraisals. It is recommended to

establish a well-defined legal requirement and methodology for transport project appraisals.

A legal requirement stating the principles, procedures, andmethodologies for all the agencies

in charge of project planning and financing, will contribute tomore effective project appraisal

and selection practices.

In many Mozambican transport projects, a reference is made to the UK's WebTag guidelines

and the JICA guidelines. This indicates that there is a lack of national guidelines on transport

project appraisals. Therefore, it is recommended to create a

project appraisal manual,

with

standardized input parameters, including amongst others discount rate, the value of time,

project duration, etc.

Case study Nigeria

The Road Sector Development Team (RSDT), supported through a number of IFIs, functions as

a knowledge center in the road sector, providing a sound methodological basis for project

appraisal, including HDM-4, and contributing to building capacity in the sector in project

appraisal.

Also, the EGRP focus lab is developed to fast-track private sector investments in the transport

sector.

Some lessons we learned during the case study:

Broadening the scope

of transport project appraisals. It is recommended to apply project

appraisal for a broader set of transport projects. The rationale for this should be the ambition

to use public funds in such a way that it provides maximum benefit to the Nigerian society.

Further,

develop the capacity

in transport project appraisal. Capacity in project appraisal

needs to be further developed, also to facilitate the above-mentioned ambition related to the

wider application of project appraisal. The knowledge and experience, which has been

created through the project appraisals of internationally funded and larger domestically

funded projects, can be used for other projects.

Create standards and a harmonized approach

. Standardization can focus on the process

steps to follow in the appraisal process, or on how to carry out a feasibility study. In addition,

it is recommended to standardize input parameters. If for a similar type of projects, input

values, such as discount rates or evaluation periods, are similar, results of the appraisal