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p. 8 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 Project Alternatives

• Identify without- and with-project situations. Develop the basis for counterfactual analysis.
• Identify possible project alternatives in terms of location, scale, timing of investments, as well as policy changes.
• Identify inputs and outputs as traded/nontraded, and incremental/nonincremental.
• Describe and assess each alternative’s benefits and costs, including possible environmental impacts and identify the least-cost alternative for the project.
• Choose the preferred alternative and explain the basis for choosing it.

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