Improving Transport Project Appraisals
In the Islamic Countries
124
Feasibility Brief description
with stakeholder groups and costs relating to the mitigation of these identified
impacts should also be estimated.
Safety A road safety audit should be done focused on the following aspects: (i)
identifying potential safety problems; (ii) considering the design and
operating speeds; (iii) and assessing the relative safety performance of
various alternatives for the roads project.
Economic and
financial
Using the costs determined for the project and traffic estimates, high level
economic feasibility studies should be undertaken to indicate investment
needs and likely return on investments. Financial analysis will determine the
overall budgets, as well las the timing of the investments that are required for
the project. Funding for these projects must then be identified and allocated.
Source: Code of Procedures, Highway Manual
As can be seen, guidance is provided at a general level, leaving open room for detail at individual
project level. There is no legal basis prescribing on how to carry out a feasibility study or what
kind of input parameters are to be used.
The process described above for road infrastructure is representative for the other modes of
transport (air, rail, maritime), where the Procurement Act also demands relevant project
appraisal to be carried out in the preparation phase. This requirement (of having to carry out
transport project appraisal) is confirmed by representatives from the Ministry of
Transportation97 ,
Although there is a legal obligation for project appraisal and carrying out (economic and
financial) feasibility studies, as established above, stakeholders remark that economic and
financial feasibility studies are not carried out on a structural basis. Feasibility studies are
prepared for all projects that are carried out in collaboration with IFIs and for most major
infrastructure projects funded though national resources or sovereign funds. For other projects,
(economic and financial) feasibility studies are sometimes missing or done at a shallow level
only. The absence of detailed requirements on how to implement the feasibility studies
facilitates the varying level of detail of the (economic and financial) feasibility studies.
8.3 Governance
Nigeria’s institutional structure comprises three levels: federal, state, and local. At the federal
level, the Ministry of Transportation (MoT) sets the national transport policy and is responsible
for managing transport infrastructure, other than road infrastructure, in collaboration with the
relevant authorities, as outlined below. The Ministry of Power, Works and Housing (MoPWH) is
responsible for managing the federal road network. The state and local authorities are
responsible for the management of the infrastructure networks at respectively the state and
local level.
97 The Ministry of Transportation is responsible for all modes, other than roads.