Improving Transport Project Appraisals
In the Islamic Countries
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CBA is the instrument most applied to establish economic and financial feasibility of a project,
with inputs in the form of capital (investment) costs and benefits mostly in time savings and
vehicle operating costs (in the case of road projects), as well as a range of other potential benefits
(safety, environment, social). The latter benefits are mostly not quantified and are incorporated
in the appraisal in a qualitative way. Demand analysis is carried out as part of the appraisal
process, as (future) transport flows are a key driver of the benefits.
The results of the appraisal process is used for justification of the investment of a transport
project. As indicated above, the project appraisal and its feasible result is a part of the process
of receiving a “no objection” from the BPP in order for a project to be tendered.
Policy recommendations
Based on the above-described conclusions a number of policy recommendations can be defined,
as presented below.
Broadening the scope of transport project appraisals
 It is recommended to apply project appraisal for a broader set of transport projects. The
rationale for this should be the ambition to use public funds in such a way that it provides
maximum benefit to the Nigerian society.
 As such, project appraisal is integrated in a process of justification of use of (public) funds,
based on sound socio-economic principles. Consequently, project appraisal is not to be
regarded as a pre-condition from an IFI, or other institution, but instead be embedded in
decision-making, with full political support.
 A simplified approach should be considered for smaller projects, lowering the threshold to
carry out feasibility studies. This could be achieved by creating standards and clear guidance
for such projects, as also mentioned below.
An effort must be made to further create capacity in transport appraisal
 Capacity in project appraisal needs to be further developed, also to facilitate the above-
mentioned ambition related to wider application of project appraisal. The knowledge and
experience, which has been created through the project appraisals of internationally funded
and larger domestically funded projects, can be used for other projects.
 It is recommended to develop and implement training programmes, possibly funded through
development partners,
 Furthermore, it is recommended to consolidate and concentrate the knowledge and
experience, fro example by establishing expertise centres. In the road sector, it is
recommended to at least sustain and preferably extend the role of RSDT as expertise centre,
capable of dealing with HDM-4. In other sectors, an equivalent for such expertise centre
should be considered. Bundling knowledge and expertise will enhance the opportunity to
further mainstream project appraisal in (investment) decision-making process.
 Providing project appraisal manual(s),, as presented below, will facilitate the capacity
building process.