Improving Transport Project Appraisals
In the Islamic Countries
19
Figure 1.2: Legal requirement to perform CBA for feasibility studies 4
Source: CSIL processing OECD survey data 5
The mere existence of a formal general requirement is not enough to ensure discipline in the
way the requirement of performing a project appraisal is applied in practice and the level of
enforcement. In other terms, the legal obligations or recommendations can address and specify to
a different extent the appraisal objectives, its features and the methodolog y to be used. In other
cases, the legal basis only recommends to carry out a project appraisal but it does not precisely
define the way this appraisal should be made. The degree of specification within the legal basis
critically influences the way the appraisal is carried out.
The objective of the appraisal is another important element of the overall system and it is linked
to the actual use of its results (discussed in section on results of project appraisal). While in the
majority of cases project appraisal is used to justify the financing decision, other relevant
objectives are accountability and strategic planning. presents an overview of
objectives related to CBA in place in the OECD countries.
4 Number of responses presented on the Y-axis. This also applies to the following tables, presenting results from the OECD
benchmark study.
5 Data are drawn from a survey carried out in 2014 by the OECD on 20 countries. The use of Cost-Benefit Analysis for
appraising public capital investment was the focus of the survey but results are relevant for project appraisal more in
general. A structured questionnaire for data collection was prepared and sent to country representatives of ministries of
finance or equivalent departments with central budgetary and/or public investment roles (liaising with line departments
and other key governmental stakeholders when relevant). Policy documents, guidelines, and regulatory reference
documents complemented the information base and were analysed when available. Additional information and raw data
are available here:
0
1
2
3
4
5
6
7
8
9
Mandatory nationwide
by legislation for all
capital investment
projects above a certain
financial threshold
No nationwide
legislation, but there is a
legislation at
state/regional/local
government level
No legal requirement,
but it is recommended
by government and
used anyway
Legal requirement
nationwide, but only for
specific category of
projects
No