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081_080910 2 CBA Workshop Final

081_080910 2 CBA Workshop Final

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Published by Rasha Daim

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Published by: Rasha Daim on Dec 19, 2012
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07/07/2013

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Practical use of cost-benefit analysis incontext of EU assistance
10-11 September2008, Tallinn
Marko KristlMichel Gaspard
 
2
INTRODUCTION
CBA is based in economic theory and it developed asthe economic theory was progressing; most intensivein transport.
First application of CBA in US Flood Control Act 1936:a project is accepted if “…the benefits to whomsoever may accrue, are in excess to the estimated cost…”.
However: not an exact discipline, but applied socialscience, based on approximations, workinghypotheses, affected by lacking data, resources anduncertainty.
This workshop: CBA in the context of EU assistancewho is managing development assistance under themandate of EU MS. Principles are the same as for thenational public or private projects.
 
3
Contents
 A.Requirements regarding inputs to the CBA:
Objective definition 
Technical description 
Option selection 
Demand analysis 
B.Financial analysis:
Definition, objective, structure 
Revenue/non revenue-generating projects 
Definition of “Without the projectoptio
Assumptions 
Checking the consistency 

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