Improving Transport Project Appraisals
In the Islamic Countries
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high quality projects co-financed by the EC. Since its creation in 200532, JASPERS evolved in
terms of the types of services it undertakes. While initially it provided exclusively technical
advisory services in individual projects preparation, JASPERS currently also provides project
review and capacity building, networking and sharing of best practices.
The EC defines in secondary legislation the value of financial and social discount rates; it also
indicates the way key performance indicators (KPIs) must be calculated. It however leaves to
Member States the definition of national and regional unit values
As stated earlier, project appraisals within the WB have a rather different purpose than it does
in national administrations. This means that less attention is paid to the consistency of
evaluation conventions across WB projects. Nevertheless, in “ Investment Project Financing –
Preparing the Project Appraisal Document (PAD) ”, guidance is given for the content and structure
of a WB Project Appraisal. According to the guidelines, a project appraisal should contain: 1.
Strategic Context, 2. Project Development Objectives, 3. Project Description, 4. Implementation,
5. Key Risks and Mitigation Measures, 6. Appraisal Summary.
The ADB has developed guidelines on the economic analysis of projects. The guidelines provide
general principles for the conduct of project economic analysis. This includes the identification
of project benefits and costs, economic valuation of benefits and costs, investment decisions and
criteria, sensitivity and risk analysis and sustainability.
2.3.4 Content
The WB’s “Handbook on Economic Analysis of Investment Operations” describes the analytical
tools that can be used for the economic evaluation of various effects of transport projects.
The consideration of alternative options is recognized as an important step in project evaluation.
According to the Handbook, scenario analysis can be executed throughout the project cycle by
means of with-and-without comparisons. This type of examination attempts to quantify the
incremental benefits arising from the individual project, thereby enabling decision makers to
compare the effects of different options.
The Handbook also provides an extensive guideline for the monetization of different types of
time-savings. Distinctions are made between savings in working- and commuting-time, as well
time-savings in freight transportation and public transport. This can be seen i
32 The initiative was created in 2005 and officially launched in 2006 through a Memorandum of Understanding (MoU)
between the EC, the EIB and the European Bank for Reconstruction and Development (EBRD) and later the KfW.
Currently, the initiative is implemented by the EC and the EIB.