Improving Transport Project Appraisals

In the Islamic Countries

i.e. the analysis is carried out correctly, according to the state-of-art and the assumptions and

results are credible. A system of quality check can ensure that only good results enter into the

decision-making process, avoiding unrealistic or weak evidence being used for project selection.

It is important however that the review goes beyond a formalistic compliance check and extends

to an assessment of the rationale and substance of the assumptions and results underpinned by

the analysis. A

system which systematically rewards good analysis and rejects or asks for revisions

of poor ones

, is a system enforcing a culture of evidence-based policy.

Figure 1.6: Parties involve in the quality of the CBA

Source: CSIL processing OECD survey data

An interesting example is the

Chilean

system which includes both supervisory and quality

control mechanisms, with clear separation between the project analyst and the official

responsible for determining the project’s rate. In the specific case of complex investment that

may be particularly difficult to evaluate from a methodological point of view, the central

administration establishes a review committee. Moreover, two or three times a year, the

coordination unit undertakes a review process of a random sample of recommended investment

initiatives. Another example of a formal review process is provided by the

European Commission

(EC)

, as embodied in the

EU cohesion policy

legislation for 2014-2020. See further on this in

section 3.3.2.

Usually,

the way in which the quality control system is designed reflects the institutional

safeguards

implemented to improve the effectiveness of the project evaluation. Among the

features of an effective quality control system there are: the separation between the institution

that reviews and approves the appraisal of projects from the bodies promoting projects; a strong

normative foundation that includes the development of methodological guidelines and

A special unit at

the central

government

level

It depends,

there is no

specific

permanent

arrangement

There is no

formal quality

review of the

CBA

Other

An evaluation

unit at the

sectoral level-

line department

A technical unit

within the

relevant

procuring

agency

Private

consultants

hired by the

project sponsor