Improving Transport Project Appraisals
In the Islamic Countries
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10.2.2 Specific recommendations
In addition to the above-mentioned general recommendations, this section presents specific
recommendations.
Develop a systematic framework to transport project appraisal
 Project appraisal should not be regarded as a pre-condition from an external party, such as a
development partner, but instead be embedded into a wider framework for decision-making,
with full political support.
 The recommended transport project appraisal framework must indicate:
- For what types of project appraisal is carried out and when;
- Which is the objective of the appraisal and how the appraisal is expected to inform the
decision-making process , for example which is the relation among the different types of
analyses required;
- What type of analysis is applied (CBA, MCA, CEA) and which are the specific references for
them;
- What detail level is used. One can for example distinguish between a simple analysis,
based on benchmark figures, or an extensive, tailor-made analysis. Different
methodologies or different depth can be accepted depending on the type of projects
 One of the main aims of project appraisal should be to demonstrate the social desirability of
the project, i.e. does the project provide maximum benefit to society?. This should be
regarded against viable alternatives . CBA (economic evaluation) is the best available tool for
this purpose and is considered the preferred methodology, especially for large projects.
 The economic evaluation is particularly useful in case of PPP funding, where it can
complement the more common financial and bankability evaluation in order to clearly spell
out andmake explicit the benefits for the private investors and those for the local population.
Create capacity in transport appraisal
 Capacity in project appraisal needs to be further strengthened in order to contribute to the
above-mentioned objective and the framework for decision-making.
 It is recommended to build capacity in transport project appraisal by:
- Develop and implement training programmes, seminars, conferences and workshops for
public officials. In case of financial constraints, funded through development partners can
be considered.
- Consolidate project appraisal knowledge and experience in expertise centres. Bundling
knowledge and expertise will enhance the ability to mainstream project appraisal in the
investment decision-making process.
- Encouraging the exchange of good practices among the agencies and bodies involved in
transport project appraisal.
- A system of official certification of competences , both for public officials and external
experts, is a good practice to be encouraged.
 Specific attention must be paid to develop capacity for demand analysis .
- Standards and procedures on how to carry out demand analysis must be promoted.