Improving Transport Project Appraisals
In the Islamic Countries
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8.8 Follow-up and learning
Monitoring and ex-post evaluation
Monitoring of progress of implementation is standard procedure, again as indicated i
As elsewhere in the world, cost overruns and delays in implementation can be recorded. In
the consultation with stakeholders, it appeared that ex-post evaluation is not carried out, at least
not on a structural basis.
8.9 Conclusions and recommendations
Conclusions
Project appraisal in the transport sector in Nigeria is carried out for all projects that include
international funding and for most large infrastructure projects that are funded through
domestic sources. Project appraisal is not a hard legal requirement, but it is a pre-condition for
a project to receive a “no objection status” for procurement. As such, the Procurement Act
provides a legal basis for appraisal of all projects that are procured, which includes most
transport projects. The Procurement Act does not describe how projects are to be appraised.
Consequently, there is room for interpretation, which may lead to different ways at which
projects are appraised. For some projects, notably at state or local level, limited or no appraisal
is taking place.
The capacity to carry out project appraisal varies per governance level. At federal level, the
capacity is higher than at state and local level. In the road sector, a set of manuals provides
guidance on project appraisal, as captured in the so-called preparation phase, as part of a defined
project cycle. This phase includes feasibility studies (technical, social and environmental, safety,
economic and financial). The MoPWH and MoT are leading the appraisal process at federal level
for roads and other modes of transport respectively. This approach is mirrored at state and local
level through the respective public agencies.
Feasibility studies and relevant input may be done in-house or may be outsourced to the private
sector. The responsibility for the quality remains with the above-mentioned public bodies. In
the road sector, the RSDT plays an important role in providing knowledge and expertise in
project appraisal, acting as an expertise centre. Relatively limited effort is placed on developing
capacity in project appraisal, e.g. though training programmes. Some capacity building has taken
place, for example through secondments to the RSDT and as part of IFI funded larger transport
projects.
Standardisation in the use of input parameters (discount rate, evaluation period) is facilitated
through the use of support tools. An example is the use of HDM-4, a model for the road sub-
sector, which is calibrated for the Nigerian situation and often uses standard input values, i.e.
12% discount rate and 20 year evaluation period. Having said so, feasibility studies with other
values, e.g. 30% discount rate, have also been noticed.