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	Table of Contents
p. 7 of 14 BACK | NEXT 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

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Identify Economic Rationale

• Describe the market or institutional failure that needs to be addressed.
• Establish the rationale for public sector involvement. Justify what the government can do that the private sector cannot.
• Clarify and evaluate the strategic relevance of the proposed project-type operation, in the country or sector context.
• Justify the role and form of ADB’s possible involvement.

Back 3. Assess Demand	Next 5. Identify Project Alternatives