Improving Transport Project Appraisals
In the Islamic Countries
115
Make use of the PPP Unit in matching supply and demand
 The PPP Unit, in its relatively short existence, has managed to bring a sizeable amount of
projects forward to the PPP Council, including three large transport projects. The PPP Unit
has the ability to connect supply, i.e. transport projects, with demand, i.e. private sector
funding. A continuous pipeline of potential transport projects, to be developed under a PPP
structure, should be considered.
 The PPP guidelines manual could be linked to a manual focused on how to carry out project
appraisal (see recommendation on transport project appraisal manual).
 Closer interaction could be established between the PPP Unit and the relevant ministries and
authorities in transport to jointly develop common approach on project appraisal and to link
this with the PPP process steps. Part of the mandate of the PPP Unit is to build capacity in the
sector, which can be used as leverage for such collaboration.
Creating a transport project appraisal manual
 It is recommended to develop a project appraisal manual, with standardised input
parameters, including amongst others discount rate, value of time, value of statistical life,
project duration. This to ensure that projects are assessed on a similar basis. Parameters can
off course differ per category of project, e.g. the lifetime of a road may differ from an ITS
solution. These parameters are to be defined in collaboration with relevant stakeholders,
such as Central Bank of Jordan for discount rate. Furthermore, the values should be updated
on a basis, for example once a year.
 Besides the above-mentioned parameters, it may be helpful to include standard process steps
to be included in the manual, for example as included in the PPP guidelines manual.
 It is recommended to annex these recommendations to the Terms of Reference of
consultant’s assignments for feasibility studies. The consultant needs to apply the standard
parameters and can only deviate from these standards if proper justification is provided.
 The project appraisal manual needs to be the standard for all transport project appraisal and
therefore needs to be shared with all stakeholders involved, including the PPP Unit.
Further build appraisal capacity in the transport sector
 It is recommended to further capacitate the relevant ministries and authorities in transport
project appraisal. Although basic knowledge and experience is certainly present, enhanced
capacity in this field would enable the ministries and authorities to be a stronger counterpart
to the private sector consultants, carrying out the feasibility studies, and be better equipped
to carry out quality control.
 The above-mentioned project appraisal manual could be instrumental in building capacity in
the transport sector