Improving Transport Project Appraisals
In the Islamic Countries
110
Value of Statistical Life
The value of a road safety casualty is incorporated in project appraisal at a level of the insurance
money that would need to be paid. This value is relatively low and depends on a case by case
basis. No Value of Statistical Life calculations have been made. The fact that relatively low
monetary values are applied, results in relatively low road safety impact in monetary terms.
Project duration
Project duration is determined on a case by case basis. The examples reviewed, indicate a
normal pattern of project duration. For example, in the Amman-Zarqa BRT case, a 30 year project
duration has been applied. No prescribed standards are applied for similar type of projects.
Cases study: Amman-Zarqa Bus Rapid Transit (BRT).
This BRT project will be implemented as a PPP project, including a combination of:
 Public sector part: providing infrastructure and superstructure (two terminals and four
stations),
 Private sector part: provision of rolling stock and ITS system.
The estimated capital investment is 120 million EUR. The project is receiving financial support
through regional sources, including a GCC grant awarded through the Kuwaiti Development
Fund. In addition, a loan is provided by AFD for technical assistance on preparing the feasibility
study and supporting the tendering process for the private sector part. The project consists of
operating buses between Amman and Zarqa in order to reduce congestion on the highway
connecting the two cities and decrease the transport time for passengers (estimated from
around 40 minutes to 20-25 minutes). The Land Transport Regulatory Commission (LTRC) will
be responsible for regulating operations of the BRT lines once the project is completed.
For the provision of infrastructure and superstructure (the public sector part), the process is
managed by a dedicated Steering Committee, with decision-making authority, and a Technical
Committee, guiding the process and advising the Steering Committee. This process is supported
by a consortium of Systra, AEC and DarAl-Omran in preparing the feasibility study. The
feasibility study indicated positive results. As a subsequent step, the tendering process was
launched, in accordance with national procurement law, which has resulted in the award of four
contracts awarded, each for approximately 5 km of the total stretch of 20 km. A review of the
feasibility study indicates that all standard process steps have been applied, including demand
analysis, cost benefit analysis and risk analysis. The following input parameters were applied in
the CBA: a discount rate of 8%, a duration of 30 years, VoT of 2.16 JOT for the year 204792.
Regarding the five steps, as established in the PPP manual, the following can be recorded in
relation to the private sector part:
92 Based on a project duration of 30 years. The VoT applied could be a weighted average of the values presented in Table
1.5, corrected for growth of GDP per capita.