Improving Transport Project Appraisals
In the Islamic Countries
25
contractual relationship with the contractor) can have an incentive in quick funds absorption
and implementation.
Figure 1.5: Parties that carry out CBA
Source: CSIL processing OECD survey data
Chile’s National Public Investment System (SNI) is one of the most consistent frameworks for
public investment management, frequently singled out by relevant literature as a best practice.
Key to the project appraisal procedure in Chile is the institutional distinction between project
promoter and the Planning Ministry (Mideplan), which is the institution with the actual
ownership of the reviewing role. Although the independence of the reviewing institution is not
absolute, this institutional separation at least reduces the political and hierarchal pressures that
could otherwise affect the quality of evaluations (Gómez-Lobo, 2012) when a unique institution
in charge of promoting a project, assessing its appraisal and taking the funding decision.
Ad 2) Quality review
Regardless who promotes projects, carries out the appraisals and takes the decisions, an
independent quality review of project appraisals represents a powerful insurance mechanism. The
quality review can be performed by a department internal, but functionally independent, of the
administration in charge of project appraisal and selection, or by an external authoritative body
before the appraisal results are used for decision-making. In both cases, competence and
independence shall be guaranteed for a proper system of checks and balance.
provides an overview of institutions involved in quality assessment of CBA in the OCED
countries.
The appraisal review is a check along a set of criteria which form the basis for project selection.
Such criteria may refer to the degree of a) completeness of the dossier, i.e. the amount and level
of details of the information is sufficient to enable an informed decision, b) its technical quality,
0
1
2
3
4
5
6
7
8
9
10
It depends, there is no
specific permanent
arrangement
Other An evaluation unit at
the sectoral level-line
department
Private consultants
hired by the project
sponsor
A technical unit within
the relevant procuring
agency