Improving Transport Project Appraisals
In the Islamic Countries
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5.7 Results of project appraisal
Use of results
The results of project appraisal are used to provide justification for investing in a transport
project and is integrated in the process of project preparation aimed at establishing the
feasibility of a project. For government-based transport projects, the results of the appraisal are
used for the prioritisation of projects (e.g. by PMO and RAI). In case of PPP projects, if there is
more than one available investor, the appraisal results are instead used to select the best
alternative offer. In addition, appraisal results help identify which projects are most suitable to
be promoted as investing opportunities (e.g. by OIETAI).
Selection criteria
Criteria used to select projects for implementation include the internal rate of return (IRR) and
the net present value (NPV), as calculated through the CBA. However, as already mentioned85,
no formal thresholds for performance indicators are established a priori. As such, the panels of
experts conducting quality reviews for final approval of projects enjoy a high degree of
discretion. However, the fact that project appraisals are reviewed by qualified panels of experts
is a form of assurance towards the selection of good projects.
In some cases, for strategic political considerations (e.g. due to a contribution to the country’s
passive defence, as already mentioned) some exceptions may apply, and projects may be
implemented based on different or less strict criteria.
5.8 Follow-up and learning
Monitoring and ex-post evaluation
A monitoring of project implementation and operation is carried out for both government-based
and PPP projects, under responsibility of the MRUD and its affiliated organisations. A general
obligation to monitor projects’ construction and operation stems from PBO rules.
In the case of PMO, the CBA developed during project appraisal is later updated and used to
monitor projects during operation phase, mainly for financial aspects.
Beyond this, anyway, also the effects generated by the project and its overall performance are
reported to be generally monitored, for instance by measuring the achieved time savings and
the level of revenues collected, and comparing them with the values forecasted ex-ante.
According to CDTIC, such monitoring is carried out through the Primavera software86 and is
helped by work-breakdown structure (WBS), dividing projects into deliverable-oriented
components.
By contrast, ex-post evaluation is not compulsory, and the focus appears to be only on financial
audit. Ex-post evaluation is performed rarely: for example, it is carried out if there is a need to
85 See Paragraphs “Governance – Quality Review” and “Capacity and tools – Standards and guidelines”.
86 Primavera (originally developed by Primavera Systems Inc. in 1983) is a software used to manage a project portfolio. It
includes features designed for project and product management, collaboration and control.