Improving Transport Project Appraisals
In the Islamic Countries
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Developing software or IT tools, such as templates and spreadsheets to support routine calculation
is another way to enhance standardisation. Lithuania for example has developed a standardised
spreadsheet as computational tool provided by the central planning agency to all line ministries
and procurement agencies developing capital investment projects. The spreadsheet enables the
automatic calculation of key indicators and other aspects (e.g. the treatment of VAT). Observed
benefits of this system are a reduction in mistakes and inaccuracies as well as easier and shorted
evaluation processes. An additional reported benefit is also that less specific knowledge is
needed, however this risks also to be a weakness of the system if it ends in a too mechanical
exercise without thorough technical 12ownership of the key assumptions and features of the
project appraisal.
In example of a transport-specific comprehensive set of tools and guidelines is WebTAG (Web-
based Transport Analysis Guidance) developed by the UK government (see further in section
3.1.4). Instead, the Highway Development and Management (HDM-4) model is an example of a
commercial software package, which serves as a tool for the analysis, planning, management
and appraisal of roadmaintenance, improvements and investment decisions. HDM-4 is regularly
used as the WB’s model for appraising road investment proposals in developing countries.
Finally, standardizing project presentation formats can be a powerful means to communicate
appraisal assumptions and results, thereby aiding the comparison of different projects
appraisal. The fact that assumptions are clearly identifiable allowing for replicability of the
analysis is a key feature of an appraisal report which requires to be carefully assessed as a part
of the content requirements. This is the system adopted by INEA an EU executive agency in
charge of implementing the Connecting Europe Facility13. The agency requires applicants in calls
for proposals to adhere to the EC CBA Guide, but leaves flexibility in the way the CBA are
performed. Nonetheless, regardless the specific model adopted, it requires to present the CBA
results according to a defined Cash Flow Template, organised in such a way as to make easier
the access and understanding of data and results by the appraisers14 .
1.2.4 Content
As regards the technical dimension, the analysis focuses on how transport project appraisal is
carried out. In particular, three main elements are to be firstly examined when assessing project
appraisal practices: a) Methodology; b) Items; c) Risk assessment.
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proposals