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Table of Contents
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Introduction
Part I: Scope of Project Economic Analysis
Part II: The 10 Areas of Analysis
1. Assess Macroeconomic Context
2. Assess Sector Context
>> 3. Assess Demand
4. Identify Economic Rationale
5. Identify Project Alternatives
6. Identify and Compare Benefits and Costs
7. Assess Financial and Institutional Sustainability
8. Undertake Distribution Analysis
9. Undertake Sensitivity and Risk Analysis
10. Establish a Project Performance Monitoring System (PPMS)
Part III: Areas of Analysis in ADB's Project Processing Cycle
Key Areas of Economic Analysis of Projects : Part II: The 10 Areas of Analysis

Assess Demand

  • Assess demand for goods and services produced/provided by the sector, and the size of the market in terms of the demand to be met by a possible project.
  • Identify and distinguish demand shifting and changing factors including income, demography and substitutable and complementary goods and services.
  • Assess consumer/client’s degree of satisfaction with the existing quantity and quality of goods and services produced/provided
  • Identify potential and options for beneficiaries’ willingness-to-pay for project goods and services.
  • Assess how demand will be affected by price and user charges.


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2. Assess Sector Context
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4. Identify Economic Rationale