Improving Transport Project Appraisals
In the Islamic Countries
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2 Appraisal of transport projects: international practices
This chapter presents the application of the conceptual framework to two non-OIC countries, i.e.
the Netherlands (Section 3.1) and the United Kingdom (Section 3.2). In addition, practices from
IFIs, notably the WB, the ADB and the EC, are included in Section 3.3.
2.1 The Netherlands
2.1.1 Legal basis
In the Netherlands, the framework for appraisal in transport projects is mainly based on the
CBA. The Netherlands has a long history of using CBA and MCA in the appraisal of transport
infrastructure and policy, but since the year 2000 has there been a commitment to use CBA for
all large infrastructure projects. In this year, also a set of guidelines was published for applying
CBA to transport projects in practice, which was meant to raise the general level of analysis and
promote uniformity in the appraisal methods used. This was the so called “OEI-guideline” (CPB
and NEI, 2000). As of the year 2004, more guidelines have been added. On the one hand, these
are guidelines that indicate how the Social Cost-Benefit Analysis (SCBA) methodology should be
applied at a particular point in the decision-making process or for a certain type of project. On
the other hand, these are guidelines that indicate how input studies should be used to estimate
effects in the SCBA.
The use of CBA is not limited to public projects and can be used as a decision-making tool by the
government, interest groups and companies. However, the CBA is mandatory for large projects
that have a large impact on the future of an area. For example, in the projects from the Multi-
year Infrastructure, Spatial Transport (MIRT) program. The Ministry of Infrastructure and
Water Management has been using SCBAs in decision-making for the MIRT-program since the
last decade. A working guide has been drawn up for this, which is periodically updated 21. The
execution of CBA for public projects is outsourced to private consultants such as Ecorys, Decisio,
etc.
In the Netherlands, the House of Representatives ordered that CBAs for all large national
projects are subject for reviews by second opinions. The rationale of the order was that the
review could contribute to a better quality of the research, which could lead into a better
political decision-making process. The information from a CBA is useful at almost every stage of
the policy preparation because decisions are constantlymade about the further details of project
alternatives. This argues for making a CBA at an early stage. On the other hand, for the
preparation of a complete CBA, so much information is needed that full implementation is only
possible at a late stage.
An EIA is drawn up for projects that may have significant adverse effects on the environment.
The government that has to take the decision can use the EIA in its assessments. In the
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