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Improving Transport Project Appraisals

In the Islamic Countries

79

Road Asset Management System

A Road Asset Management System (RAMS) is a tool which can be employed to optimally allocate

resources for the operation and maintenance of road infrastructure. Given the limited

availability of both human- and financial-resources in Afghanistan, this methodology is essential

in facilitating the necessary allocation of such resources to meet the public’s demands

. Figure 4.1

illustrates the steps in the execution of a RAMS.

Figure 4.1: Steps in a RAMS

Source: Afghanistan Transport Sector Master Plan Update (2017-2036)

4.5

Content

Methodology

Two types of appraisal methods are applied in Afghanistan:

Cost-benefit analysis

in accordance with the requirements and partnership agreements of

IFIs, such as the WB and ADB.

Multi-criteria analysis

in the process of identifying and prioritising transport projects in the

context of the ATSMPU.

Cost-Benefit Analysis

Afghanistan closely collaborates with development partners and IFIs on investment projects

and the reconstruction of its transport infrastructure. Institutions, such as the WB and ADB,

require project appraisal, mostly in the form of CBA, to be carried out in compliance with the

partnership agreements. This requirement ensures that granted funds or loans meet financial

and socio-economic objectives. No information has been found regarding the specific elements

of this analysis, such as economic costs and benefits or social impacts. It is unknown if project

appraisal is a mandatory step of projects funded though domestic funds.