UNIDO

Understanding UNIDO's method of project appraisal

UNIDO's method of project appraisal involves five

OVERVIEW stages:

1. Calculation of the financial profitability of the

UNIDO approach was first articulated in the Guidelines project measured at market prices.
for Project Evaluation which provides a comprehensive
framework for SCBA in developing countries. 2. Obtaining the net benefit of the project
• Measures cost and benefits in terms of domestic measured in terms of economic (efficiency)
rupees. prices.
• Measures cost and benefits in terms of
Models

consumption. 3. Adjustment for the impact of the project on

• Focuses on efficiency, savings and redistribution savings and investment.
aspects in different stages.
4. Adjustment for the impact of the project on
income and distribution.

5. Adjustment for the impact of the project on

merit goods and demerit goods whose social
values differ from their economic values.