Improving Transport Project Appraisals
In the Islamic Countries
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Table 3.3: Elements included in the EIA
Environmental Impacts Yes No
Noise pollution 100% 0%
Air pollution 100% 0%
Waste management 0% 100%
Use of raw material and natural resources 100% 0%
Source: survey
Table 3.4: Elements included in the social impact assessment
Social Impacts Yes No
Territorial cohesion 0% 100%
Re-distributive effects 100% 0%
Access to goods and services 100% 0%
Health impacts 100% 0%
Source: survey
Usually the market price method is used for the calculation of benefits and costs in the appraisal
period. The shadow price or willingness-to-pay methods are not used. The capital budgeting
techniques used in the appraisal process are the NPV method and the IRR.
3.2.5 Demand Analysis
The respondents stated that several forecasting methods are used to perform the demand
analysis, such as historical trend analysis. In a historical trend analysis model, parameters such
as land use, socio-economic and demographic data are used to predict the demand. A classis
traffic estimation model that takes into account the model split, trip generation, trip distribution
is also used.
Limitations encountered during demand analysis are:
 Unreliable data
 Lack of data
 Lack of expert personnel
 Lack of information sharing between institutions
3.2.6 Results of project appraisal
From the results of the survey, it was found that the internal use of project appraisals is both to
provide a justification for project selection and to enable a prioritisation of projects. In 75% of
the responses, it is also assessed whether projects are in line with strategies and policies defined
by the national government.