Improving Transport Project Appraisals
In the Islamic Countries
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2.2 United Kingdom
2.2.1 Legal basis
In the United Kingdom, there is a nationwide obligation to carry out CBA for all or most capital
investment projects supported by the role of a central budget unit with ultimate responsibility
on funds management. However, this obligation does not stem from a legislative prescription,
but by firm recommendations from the central authority bearing the ultimate responsibility on
capital expenditures decision to ground the request for funding on clear and objective evidence
supporting their social convenience.
An appraisal can be conducted during different stages of the project cycle. The scope of the
appraisal differs at each stage in the development of the project. It can be a high level scoping
based on existing information to the detailed appraisal derived from a transport model for
estimating the impacts of the selected options. Furthermore, appraisal is iterative and involves
checks and reworking of steps in the analysis and planning stages of an intervention. In the UK,
the appraisal system is focused on the assessment at project level, without the aim of making
comparison among projects (Mackie, 2011). Moreover, appraisal is used already at a good stage
of design. Sometimes projects are already defined even before the appraisal is carried out.
2.2.2 Governance
The Treasury has an overarching coordinating role. In order to ensure an independent and
objective approach, appraisals should be performed by individuals or teams who have had no
responsibility for or involvement in the management or implementation of the proposal under
consideration. However, they must have the co-operation of those who have been involved and
possess the necessary information.
2.2.3 Capacity and tools
In the English system, the Green Book22 gives guidance on how to appraise policies, programmes
and projects. This means that the Green Book is not a mechanical decision making device.
Rather, it provides guidance, methods, and recommended tools for developing options.
Individual departments of state might develop specific methods and evidence for evaluating
projects and policies within their remits but the generic features of appraisal should be common.
Many of the generic characteristics of the CBA Framework as it applies to transport are set out
in the Green Book. Reference parameters such as project life, discount rate, unit of account etc.,
are provided as a general advice and it has fallen to individual project analysts to work out how
to implement the advice.
Apart from the guidelines described in the Green Book, a transport-specific toolbox is also
developed by the UK government. This toolbox, namedWebTAG23, consists of software tools and
guidance on transport modelling and appraisal methods that are applicable for highways and
public transport interventions. Development of analysis using WebTAG guidance is a
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