Proceedings of the 13th Meeting of the
Transport and Communications Working Group
15
Content
 Cost-benefit analysis (CBA) is mentioned in most of the cases as the reference methodology
for project appraisal, although other types of analyses, such as multi-criteria analysis (MCA)
and cost-effectiveness analysis (CEA) are also applied.
 Variation is shown on the methodology and approach per project since a clear
methodological framework is often lacking.
 The costs and benefits included in project appraisal are mostly clearly structured.
Demand analysis
 The assessment of future traffic flows is part of the project appraisals reviewed. This
assessment is in many cases outsourced to a private sector consultant, often as part of a
broader support package, including the feasibility study.
 Transport models are more often run in the frame of masterplan or strategy development to
select among different options rather than for individual projects.
Results of the appraisal
 Project appraisal is in the vast majority of cases used for justification of a transport
infrastructure project
 Results are expressed in Net Present Value (NPV) or Internal Rate of Return (IRR) when a
CBA is a methodology
 MCA is used to prioritize projects and to develop an action plan.
Follow-up and learning
 Monitoring of project implementation is taking place in most cases.
 However, ex-post evaluation is often not carried out. Half of the respondents to the survey
indicated that the ex-post evaluation of projects is not carried out.
 In most cases, there is no clear project cycle approach, which links subsequent steps
(identification, selection, appraisal, design, tendering and contracting, implementation,
monitoring, and evaluation).
Next, Mr. SMIT presented the general recommendations of the study, also in line with the seven
defined aspects of the conceptual framework, building on the conclusions, as presented above.
Legal basis:
 Develop a clear framework for project appraisal, indicating for what type of projects
appraisal is needed and when the appraisal is needed.
 The legal framework should refer also to general guidance on how project appraisal is to be
carried out, the main principles and methodological references.