Improving Transport Project Appraisals
In the Islamic Countries
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If guidelines are available, which important parameters do they prescribe then? The response
to this question has been summarised in the table below. It can be observed that the pricing
method is prescribed in most cases, and the discount rate is only prescribed in few cases.
Table 3.1: Parameters included in guidelines
Parameter Yes No
Discount rates 25% 75%
Time Horizon 50% 50%
Pricing Method 75% 25%
Quantifying economic benefits/costs 50% 50%
Source: survey
Different types of analysis can be part of the transport project appraisal. From the responses to
the survey, it was found that CBA, MCA, qualitative analysis and macroeconomic modelling are
all used in transport project appraisals. None of the respondents indicated to use CEA in
transport project appraisals.
3.2.4 Content
In the questionnaire, some questions regarding the content of transport project appraisals were
also asked. It was found that applied discount rates varied from 4% to 10% and that the applied
appraisal period varied from smaller than 25 years to larger than 60 years. The response to the
question which of the benefits and costs are included in case of a CBA, is summarised in the table
below.
Table 3.2: Costs and benefits included in project appraisal
Yes No
Construction costs 67% 33%
Disruption from costs 50% 50%
Maintenance costs 67% 33%
Travel time savings 100% 0%
Reduced congestion 100% 0%
Improved reliability 100% 0%
User charges and revenues 100% 0%
Benefits to goods traffic 100% 0%
Safety 100% 0%
Environmental impacts 100% 0%
Social impacts 100% 0%
Source: survey
Regarding the environmental and social impacts, the result are provided in the tables below.
Waste management is the only impact that is not taken into account when assessing the
environmental impacts. Furthermore, territorial cohesion is also not taken into account when
assessing the social impacts.