Improving Transport Project Appraisals
In the Islamic Countries
20
Figure 1.3: The general objective of CBA6
Source: CSIL processing OECD survey data
Depending on the objective of the appraisal, the specific scope and timing can vary.
Ad 2) Scope of application
Provided that there is some requirement to carry out a systematic project appraisal, the issue
becomes the scope of application of such requirement. While a good practice would suggest
having some sort of scrutiny for all expenditure decisions, given that any appraisal is expensive
in terms of both time and resources there is clearly a trade-off between the benefit of the
appraisal and its cost.
Different practices are in use. For instance, in Malta CBA is mandatory for all projects exceeding
5 million Euro, in Lithuania a CBA is applied for all projects above 300,000 Euro while in Chile
there is a legal requirement for all public sector investment projects and programs to be
evaluated including infrastructure concessions funded by the private sector.
A general proportionality principle7 applies in this case, with some modularity in the
requirements for different types of projects (for example according to financial scale, nature,
degree of risks). A rule of thumb is for example to calibrate the depth and effort of the study
according to the phase and cost of the investment (se .
6 Number or responses, more than one answer was possible.
7 The concept of proportionality is usually applied to law and justice as a method assisting in discerning the correct balance
between the restriction imposed by a corrective measure and the severity of the nature of the prohibited act. The same
applies to legislative measures for which the expected benefits deriving from their enforcement should be proportionate
to the costs required to fulfilling them.
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Needed to provide a
justification for project
selection/decision and
financing
Accountability/transparency
tool
Strategic planningtool for
prioritising investment at the
central level
Technical assessment
supportingproject design in
the feasibility phase
Useful tool for project
monitoring
Tool for policy learning