Improving Transport Project Appraisals
In the Islamic Countries
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the POPE schemes are designed to assist the Highways Agency to determine the extent to which
individual projects are cost-effective, the levels of accuracy of projected and outturn costs and
benefits, and identification of the main factors that may affect the forecast accuracy (Highways
Agency, 2011). There is, therefore, an explicit social learning component built into the
evaluation scheme that is intended to improve the performance of the entire Highways Agency.
Just like in the Netherlands, the CBA forms an essential part of transport project appraisals in
the UK. Therefore, it has the same drawbacks as mentioned in the section on appraisal practices
in the Netherlands. Following the analysis presented in this section, the impression is given that
England has gone further than other countries in systematic codification through WebTAG.
Other countries have their own practices and evidence base but UK work is frequently referred
to. The Green Book and the different units of WebTAG are an international reference point
regarding project appraisal practice.
2.3 International Organisations
2.3.1 Legal basis
The WB has the obligation to engage in activities which are designed to serve the best long term
interests of all its members, and not just to engage in projects that might represent the most
profitable use of resources available. The WB has to direct its resources to assisting member
governments to achieve their national objectives, primarily by making the best use of their own
national resources to which WB’s lending is a supplement. For that reason, much emphasis is
placed on the institutional and regulatory environment into which the bank is lending.
The process starts with the identification of a “Country Assistance Strategy” (CAS). This is a
document that analyses the borrowing capacity of the country, in both fiscal and administrative
senses. The areas of high priority where the WB is able to contribute best, is also analysed. In a
later stage, this is reflected by a requirement to demonstrate what value is added particularly
by the Bank’s involvement in project finance.
The EC has a strong legal basis, including primary and secondary legislation, applying to the
appraisal of major investment projects (defined as those with a total cost exceeding 50 Million
Euro, which becomes 75 Million Euro for transport projects). It not only indicates when and to
which type of projects this has to be performed, but is also suggests the precise methodology
and analytical steps to be followed. The current system is such that project appraisal is not only
a legal requirement for the funding decision, but it is also the key tool for determining the
amount of the grant. Before the enforcement of this system, an ex-ante appraisal was still carried
out, but this was done according to different practices and methodologies, with high variability
across sectors and countries. This avoided a consistent approach and comparability of even very
similar projects.