Improving Transport Project Appraisals
In the Islamic Countries
95
For instance, PMO performs CBA for infrastructures, based on a benchmarking of international
practices. Its CBA, however, is largely focused on the project’s financial aspects more than on
economic evaluation of socio-economic benefits.
While RAI adopts CBA for infrastructures as well, at times it resorts to other types of analyses
for other investments which are not infrastructural. According to interviewed stakeholders, in
particular multi-criteria analysis (MCA) has been used in such cases. MCA is also often used
specifically for the environmental assessments. As an example, for the Qazvin-Rasht-Anzali
Railway Project and the Charmshahr-Bumehen Freeway Project (promoted by the CDTIC), the
Cost-Benefit analysis was used for the technical and economic studies, while the Multi-Criteria
analysis was used for the environmental assessments.
In the case of CDTIC, instead, a framework developed internally is used for transport project
appraisal by the organisation’s technical bureaus (in charge of freeways, highways, and
railways). Such model is reportedly based on the extensive experience of CDTIC in the field of
construction76.
On a different note, regulations on environmental impact assessments (EIAs) are set by the
Environmental Protection Organisation, which additionally reviews the submitted reports.
While the methodology is clear and systematically applied, some sources (IBR, 2018) have
highlighted several difficulties in relation to the actual performance of EIAs, among which the
use of outdated or inaccurate data77.
Items
The abovementioned Art. 5 of the By-Law on Implementing the PPP Act lists the studies and
assessments that are required for approving PPP projects (and which in principle can be
prepared either by the Ministry or the private contractor; de facto, by the private party).
According to interviewed stakeholders, a very similar list of items applies for government-based
projects as well.
Overall, following items can be identified as typical contents of a transport project appraisal in
Iran for government-based and PPP projects: Project identification, Demand analysis , Technical
design, Management- and time plan, Financial analysis , Economic analysis, Environmental
analysis, Risk analysis on financial aspects. The following table illustrates the precise
correspondence between these broader categories and the specific studies required by Art. 5 of
the By-Law on Implementing the PPP Act.
76 Whether this methodology overlaps with internationally acknowledged approaches could not be ascertained in the
framework of this study.
77 IBR, 2018. Environmental and Social Impact Assessments and Responsible Business in Iran.