Improving Transport Project Appraisals
In the Islamic Countries
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The actual performance of project appraisals has been so far largely assigned to external
consultants, with public authorities tasked with overseeing the analyses and carrying out a
quality review. Practices of knowledge transfer from consultants to public officials are in place.
While a standardisation of methodologies has not yet been formalised, some developments in
this direction are expected in the future, as a result of a study currently planned by the PTA on
the subject of cost-benefit analysis, cost-risk analysis and wider economic benefits. However,
the contents and results of the study, as well as its actual use and enforcement within the
national appraisal system, are not yet known. While MCA is currently the dominant method in
the appraisal of road transport and public transport projects, the role of CBA could increase as
a result of the future guidelines.
The environmental impact assessment, despite issues affecting its regular implementation,
constitutes the most developed item in transport project appraisals. On the contrary, economic
and social aspects of transport infrastructures are not adequately taken into consideration.
The results of the appraisal process usually feed into the prioritisation of projects, but no
mandatory link has been established between the appraisal’s result and the final project
implementation.
Policy recommendations
In the light of the currently not stringent regulatory framework, clearer legal obligations on the
scope, the content and the methodologies of transport project appraisals should be envisaged.
In this regard, it is recommended to establish a set of rules at the central level (under the
responsibility of the Ministry of Transport) clearly stating how, for which type of projects and
when to perform project appraisals. Such legal framework, which would represent a
fundamental tool to implement the 2011 National Transportation Strategy, would avoid leaving
room for discretion to individual transport agencies and, increasing the comparability of
projects, it would increase transparency.
An in-depth review of the approaches currently adopted across different transport modes and of
the software in use could be carried out, serving the following needs: a) having a detailed
overview on current practices across transport sub-sectors; b) exchanging information on
appraisals and possible good practices across transport modes, with the identification of
potential areas of cooperation; c) preparing an operational roadmap (indicating milestones to
be achieved and responsibilities) for a comprehensive enhancement of transport project
appraisals in the country. The performance of this task could offer the chance to involve both
Saudi and international university institutes.
Reference parameters and unit values should be defined at the national (if not regional) level for
the analyses that require them (e.g. CBA). In addition, appropriate mechanisms should be
foreseen to ensure that sufficient resources are made available for a regular update of these
values. Ad-hoc trainings on the correct use of reference parameters and unit values, moreover,
could be arranged for staff from theMinistry of Transport, PTA and other relevant organisations,