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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