The Guide to Economic Evaluation of Transport Projects – Principles of Cost-Benefit Analysis provides a structured framework for assessing whether transport investments deliver net benefits to society. Developed by the Asian Development Bank, the guide outlines best practice methods for conducting economic appraisal of road, rail, port, and urban transport projects.
It explains the theoretical foundations of cost-benefit analysis (CBA), including opportunity cost, willingness to pay, shadow pricing, and the treatment of externalities. The guide distinguishes between financial and economic analysis, emphasizing the use of economic prices to reflect real resource costs. Key benefits assessed include travel time savings, vehicle operating cost reductions, accident cost savings, environmental impacts, and reliability improvements.
Core indicators such as Economic Net Present Value (ENPV), Economic Internal Rate of Return (EIRR), and Benefit-Cost Ratio (BCR) support investment decisions, alongside sensitivity and risk analysis to address uncertainty.
