Improving Transport Project Appraisals
In the Islamic Countries
14
Establish a clear appraisal approach facilitating the development of PPP projects
 PPP projects will require a sound financial analysis, including a financial feasibility study and
CBA. Whereas the scope of the financial analysis (maximum benefit to investor) and the
economic analysis (maximum benefit to society) may differ, both analyses need to be well-
established to serve public and private sector decision-making.
 As such, creating capacity in project appraisal and a sound PPP framework (legal,
institutional) are important pre-conditions to attract private funding to the transport sector.
Use of appraisal and applying project appraisal as part of a full project cycle
 The appraisal process is now mostly used as an ex-ante evaluation of a project, mostly for
justifying an investment decision. It could be considered to broaden the use of the appraisal
process, not only for justifying an investment decision, but also to prioritise those projects
that yield best results, as mentioned above.
 Appraisals need good data. In order to improve the quality of the appraisals, project data
should be collected (with a life-cycle approach) and made available for monitoring purposes
and next project generation (benchmark studies).
 Furthermore, it is recommended to monitor the implementation and operation of a project,
as well as carry out systematic in itinere and ex-post evaluation of a project in order to
compare planning and implementation. This in order to allow for benchmarking and
establish lessons learned for next project appraisals.