Improving the Practice of Transport Project Appraisal (ITF Round Tables)

114 Pages·2011·3.59 MB·English

by  OECD

Improving the Practice of Transport
I
Project Appraisal m
p
r
o
v
Cost-benefit analysis (CBA) is indispensable for making good i
n
g
decisions on what transport projects to fund. It essentially aims to

t
h
figure out which projects offer the best value for money. However,
e

the practical relevance of CBA does not always live up to its appeal P
r
a
in principle. One problem is that there is sometimes disagreement
c
t
over what to include in CBA, both on the cost side and the benefit i
c
e
side of the analysis. As a result, value for money is not always fully
o
f
transparent. More politically, value for money is only a partial
T
r
criterion for decision-making, leading to disagreement about the a
n
relative importance of the results from CBA compared to other inputs s
p
to the decision-making process. o
r
t

P
This report examines the extent to which these shortcomings can be
r
o
addressed. In terms of what to include in CBA, discussion focuses on j
e
c
equity and distributional impacts, productivity effects, agglomeration t

A
benefits and external costs. The focus then turns to how best to
p
p
present guidance on project selection to decision makers. The report
r
a
includes papers on the way CBA is used in three countries – France, i
s
a
Mexico and the United Kingdom – and how it is evolving in response l
to changing policy priorities.
Improving the
149
Practice of Transport
Project Appraisal
R Roundtable Report
ou
www.oecd.org/publishing n
d
t
a
b
l
e
R
e
International Transport Forum 9:HSTCSC=VUVW^W: p
o
r
2 rue André Pascal t
•
75775 Paris Cedex 16 1
4
9
[email protected]
(74 2011 01 1 P1)
www.internationaltransportforum.org ISBN 978-92-821-0129-2
2011

Improving the
149
Practice of Transport
Project Appraisal
Roundtable Report
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.
Please cite this publication as:
OECD (2011), Improving the Practice of Transport Project Appraisal, ITF Round Tables, No. 149, OECD
Publishing.
http://dx.doi.org/10.1787/9789282103081-en
ISBN 978-92-821-0129-2 (print)(cid:3)
ISBN 978-92-821-0308-1 (PDF)(cid:3)
Series: ITF Round Tables(cid:3)
ISSN 2074-3378 (print)(cid:3)
ISSN 2074-336X (online)
Photo credits: Cover © Jamey Stillings, "Bridge at Hoover Dam".
Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda.
© OECD/ITF 2011
You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and
multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable
acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should
be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be
addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC)
[email protected].
INTERNATIONAL TRANSPORT FORUM
The International Transport Forum at the OECD is an intergovernmental organisation with 52
member countries. It acts as a strategic think tank with the objective of helping shape the transport policy
agenda on a global level and ensuring that it contributes to economic growth, environmental protection,
social inclusion and the preservation of human life and well-being. The International Transport Forum
organizes an annual summit of Ministers along with leading representatives from industry, civil society and
academia.
The International Transport Forum was created under a Declaration issued by the Council of
Ministers of the ECMT (European Conference of Ministers of Transport) at its Ministerial Session in May
2006 under the legal authority of the Protocol of the ECMT, signed in Brussels on 17 October 1953, and
legal instruments of the OECD.
The Members of the Forum are: Albania, Armenia, Australia, Austria, Azerbaijan, Belarus, Belgium,
Bosnia-Herzegovina, Bulgaria, Canada, Croatia, the Czech Republic, Denmark, Estonia, Finland, France,
FYROM, Georgia, Germany, Greece, Hungary, Iceland, India, Ireland, Italy, Japan, Korea, Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Moldova, Montenegro, Netherlands, New Zealand,
Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland,
Turkey, Ukraine, the United Kingdom and the United States.
The International Transport Forum’s Research Centre gathers statistics and conducts co-operative
research programmes addressing all modes of transport. Its findings are widely disseminated and support
policymaking in Member countries as well as contributing to the annual summit.
Further information about the International Transport Forum is available at
www.internationaltransportforum.org

5
TABLE OF CONTENTS –
TABLE OF CONTENTS
SUMMARY OF DISCUSSIONS .......................................................................................................... 7
The Practice of Cost-Benefit Analysis in Transport: The Case of France,
by Emile QUINET (France) ................................................................................................................ 25
1. Introduction ............................................................................................................................ 29
2. Origins of Changes in the Doctrine ........................................................................................ 30
3. Project Evaluation Guidance .................................................................................................. 32
4. Assessments of Recent Programmes and Projects ................................................................. 37
5. Overall Decision on Cost-Benefit Analysis vs. Multi-Criteria Analysis ................................ 43
6. Some Ideas for Improving Cost-Benefit Analysis ................................................................. 46
7. Conclusion ............................................................................................................................. 50
The Practice of Cost-Benefit Analysis in the Transport Sector: A Mexican Perspective,
byVladimir RAMÍREZ SOBERANIS (Mexico) .............................................................................. 55
1. Introduction ............................................................................................................................ 59
2. Institutional Framework (Stages of the Public Investment Process) ...................................... 60
3. The Role of Cost-Benefit Analysis in the Decisionmaking Process ...................................... 63
4. Key Elements of Cost-Benefit Analysis ................................................................................. 65
5. Potential Development of Project Assessment Procedures .................................................... 69
6. Conclusion ............................................................................................................................. 72
Cost-Benefit Analysis in Transport: A UK Perspective,
by Peter J. MACKIE (United Kingdom) ........................................................................................... 75
1. Introduction ............................................................................................................................ 79
2. The Role of Transport Appraisal ............................................................................................ 80
3. Transport CBA in the UK ...................................................................................................... 84
4. Critiques of UK Transport Appraisal ..................................................................................... 87
5. Transport and the Economy ................................................................................................... 92
6. Concluding Thoughts ............................................................................................................. 96
LIST OF PARTICIPANTS ............................................................................................................... 101
IMPROVING THE PRACTICE OF TRANSPORT PROJECT APPRAISAL – © OECD/ITF 2011

7
SUMMARY OF DISCUSSIONS –
SUMMARY OF DISCUSSIONS
IMPROVING THE PRACTICE OF TRANSPORT PROJECT APPRAISAL – © OECD/ITF 2011