Improving Transport Project Appraisals
In the Islamic Countries
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Coordination of mode-specific plans through an all-encompassing strategic planning process
was thus described as necessary. Moreover, the need for a strengthened role of economic
reasoning and feasibility considerations was suggested, potentially through a standardised
methodology, with the aim of assessing the economic viability of projects and allowing a
prioritisation based on their economic ranking.
In Saudi Arabia, a strong emphasis has been attached to urban transport in recent years, and
several innovative initiatives are being taken in this field in relation to project appraisals as well.
For different reasons, the development of public transport can be specifically singled out as a
key challenge for Saudi Arabia: first, for the relevance of cities in the country’s socio-economic
structure (84% of the total population lives in urban areas108 ); second, for the evolving role of
oil, which will impact on the popularity of road transport in the long term; third, for growing
environmental concerns. Accordingly, this review of project appraisal practices in Saudi Arabia,
while offering an overview of different transport modes, will particularly focus on information
concerning urban transport.
9.2 Legal basis
No legal requirement to carry out project appraisals in the transport sector is in place in Saudi
Arabia. Nevertheless, strategic documents and initiatives taken in recent years appear to suggest
a willingness to develop an appraisal system in the future.
The National Transportation Strategy, issued by Council of Ministers' decree No. 4 in 2011,
established a National Transport Infrastructure Plan, which all mode-specific planning
procedures should merge into. This new Plan, featuring a time horizon of 15 years, would
complement already existing planning procedures for roads, railways, ports and airports, and
aims to contribute to the achievement of an improved multi-modal connectivity.
In the absence of a well-defined legal obligation to carry out transport project appraisals
(formally defining the appraisals’ scope, objectives, timing and features) the decision to perform
them currently still depends on public authorities in charge of planning infrastructures for
specific transport modes. Thus, the institutional framework supporting project appraisal
appears to be fragile.
In the field of urban transport, Council of Ministers' decree No. 373 in 2011 created the Public
Transport Authority and included among its tasks the preparation of comprehensive
masterplans for public transport for mid-size cities (therefore excluding the five most populous
urban areas109). These plans should involve: an estimation and determination of current and
future demand for public transport services; the identification of alternative solutions to
develop urban transport; an evaluation of the different options; the designation of the best
option and a discussion of its possible development. Nevertheless, it needs to be underlined that
no legal requirement for a fully-fledged project appraisal is in place for public transport either.
108 Source: United Nations - Department of Economic and Social Affairs, 2018. World Urbanization Prospects: The 2018
Revision.
109 Riyadh, Mecca, Medina, Jeddah and Dammam.