Improving Transport Project Appraisals
In the Islamic Countries
42
Table 1.8: Elements of the results aspect
Aspect
Elements included
Results of
project
appraisal (i.e.
project
selection)
1.
Use of results
: How are the results of the project appraisals used? Is project
appraisal used to provide a justification for individual project
selection/decision in the feasibility phase or does it enable a prioritisation
of projects?
2.
Selection criteria
: Is it possible to select project with a negative economic
result? How is alignment with strategies ensured? How are qualitative and
quantitative evidence combined in the final assessment?
Ad 1) Use of results
Once project appraisals are produced by the appointed body, it
shall enter into the decision-
maki
ng
process in order to have some influence
on it. The objectives of appraisal (e.g. project
prioritisation, choosing among alternatives, justification for individual project selection) may
differ and influenced the role it has in the decision-making process. There are in fact different
types of decisions that can be supported by transport appraisal: prioritising projects within a
programme, choosing, between alternative solutions, deciding whether or not particular
projects represent good social value for money, and choosing the timing of investment (Bristow
and Nellthorp, 2000).
The OECD survey distinguishes among different roles that project appraisal can have in the
decision-making process, although deviations frequently exist between the declared role and
the practice. The purpose, scope and nature of appraisal can differ according to the role it has in
the decision-making process, as presented i
n Figure 1.13 .Figure 1.13: The role of CBA in the feasibility study stage
Source: CSIL processing OECD survey data
0
2
4
6
8
10
12
14
16
It is one among several
other decision making
tools (e.g. Environment
Impact Assessment,
etc.)
It is different
depending on sectors,
procuring agencies and
departments
It is increasing in role
and importance
It is the key decision
making tool in
allocating funding to
the procuring agencies
It does not play any
decisive role in the
decision making
process