Improving Transport Project Appraisals
In the Islamic Countries
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Appraisal
aspect
Description
Selection criteria
: Is it possible to select project with a negative economic
result? How is alignment with strategies ensured? How are qualitative and
quantitative evidence combined in the final assessment?
Follow-up
and learning
Monitoring:
Is basic completion review performed? Do rules exist regarding
obligations and requirements of completion reviews to identify forecasting
errors or managerial problems? Is project appraisal constantly updated as
monitoring and management tool to improve project resilience?
Ex-post evaluation:
Is ex-post evaluation of project carried out? If yes, when
it is usually carried out? Do rules exist on how many years after the project
completion the ex-post evaluation should be carried out or is this left to
occasional initiatives? Is ex-post evaluation carried out periodically on a
sample of investments or rather on a selective basis? If ex-post project
appraisal is performed, how are they used as a learning mechanism?
Source: CSIL
10.1.2
Appraisal transport project in OIC countries
This section includes conclusions on how transport project appraisal is implemented in the OIC
member countries, based on the results of the case studies and the survey.
Legal basis
In most OIC member countries, no legislation is in place that stipulates transport project
appraisal to be carried out. A notable exception is Iran, where a legal requirement to carry out
project appraisal stems from the rules set by the Plan and Budget Organisation (PBO) and is
applied to all public investments, not only in the transport sector. The need to carry out project
appraisal is also prescribed in Jordan, by the Ministry of Planning and International
Cooperation
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.
Although in many cases there may not be a specific law which requires project appraisal to be
carried out, often some kind of legislation is in place that (indirectly) calls for project appraisal
to be implemented as a pre-condition for funding. This can be in the form of a
procurement law
,
which stipulates a number of steps to be carried out before a project can be tendered, including
feasibility studies as one of the mandatory steps, as seen in Nigeria. Furthermore, a
PPP law
may
be in place, requiring, feasibility study and CBA to be carried out, as a mandatory step before a
project can be considered for PPP, as in the case of Jordan and Iran
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. It should be noted that
the scope of PPP related appraisal often focuses on
bankability and financial evaluation
of
projects and places less emphasis on socio-economic evaluation. This is also the case of all
projects that funded with the
support of development partners or IFIs
, as this is firmly embedded
in procedures of these organisation and as such a pre-condition for providing funding.
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Which is considering a Public Investment Management unit to further support this process.
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Although in Iran CBA is not specifically required.