Improving Transport Project Appraisals
In the Islamic Countries
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Table 1.5: Elements of the governance and management aspect
Aspect Elements included
Content 1. Methodology: What types of analysis (CBA, CEA, MCA, qualitative analysis,
macroeconomic modelling etc.) are required/recommended as part of the
project appraisal development? Is there one specific suggested
methodology for project appraisal? Is it complemented by other
methodologies?
2. Items: What is the standard content of a project appraisal? Which are the
typical items included in an appraisal report? Which benefits/impacts are
considered? How are they calculated?
3. Risk assessment: How is the risk assessment incorporated in into the
project appraisal? Are forecasts expressed by a baseline figure or are
confidence intervals also provided? Is a quantitative and/or qualitative risk
analyses carried out?
Ad 1) Methodological approach
The choice of amethodology implies that different aspects are considered and different techniques
and tools are used for their assessment. One of the features of transport decisions is that they
typically impact on many parties such as transport operators, transport users, local residents
and businesses, taxpayers, land and property owners. Each of them would like to assess and
maximise the effects of a project from the perspective of his/her own interest. Therefore, the
perspective of transport appraisal needs to be the society as a whole (The World Bank, 2005).
This approach implies to take into account both positive and negative effects brought about by
the project whoever is affected. Different methodologies applied for transport project appraisals
are presented i