Guidelines for the Economic Analysis of Projects

Institutional Document | February 1997

Provides guidelines for ADB staff, consultants, and officials of developing member countries in assessing project proposals for economic viability and financial sustainability. It includes sections on environmental costs and benefits, the distribution of net benefits, and sensitivity and risk analysis.

Contents 

  • Introduction
  • Background
  • The Economic Rationale of a Project
  • Macroeconomic and Sectoral Context
  • An Integrated Approach To Economic Analysis
  • Identification and Quantification of Costs and Benefits
  • Valuation of Economic Costs and Benefits
  • Large Projects, Linkages, and National Affordability
  • Least-Cost and Cost-Effective Analysis
  • Investment Criteria: Economic Viability
  • Discount Rate
  • Uncertainty: Sensitivity and Risk Analysis
  • Sustainability of Project Effects
  • Distribution of Project Effects
  • Projects and Policies
  • Appendixes