Improving Transport Project Appraisals
In the Islamic Countries
118
Figure 7.1: Main menu of HDM model
Source: World Bank
Guidelines
No specific guidelines on the content of the appraisal report and no clear standards are
documented. For the Transport Master Plan for Greater Maputo, the assistance of Japan was
sought by the Government of Mozambique. Hence, the guidelines used for this master plan were
those of the Japan International Cooperation Agency (JICA). In these guidelines
recommendations are stated on the content of an appraisal report, such as the environmental
impact assessment.
7.5 Content
Methodology
The methodology for economic analysis is based on CBA by comparing the “with the project
case” and “without the project case“ scenarios over a period of (usually) 20 years. The indicators
of viability used are the EIRR and NPV. Generally, a discount rate of 12% is used.
Usually, environmental and social impacts are also assessed. Projects may be analysed with
respect to climate change. The government has provided national policies and strategies that
have substantial elements of climate change adaptation. For example, the National Adaptation
Plan of Action (NAPA) has been prepared to identify priority activities that respond to their
urgent and immediate needs to adapt to climate change.