SECTOR AND PROJECT PLANNING IN TRANSPORTATION

In its function as an international lender using economic criteria, the Bank has been something of an operating pioneer in the cost-benefit analysis of road, rail, and port projects. Methods have evolved over time, and are still evolving. This paper provides a guideline for sector and project planning in transportation. It describes five steps for preparing a transport program. The first is to identify the basic goals which are being sought, such as promoting economic development in the country and creating employment opportunities. Second, it is necessary to prepare an inventory of the existing transport facilities, their condition and utilization. Third, a forecast of traffic must be made and the traffic then distributed to each mode of transport. Fourth, transport policies and operations must be examined to determine to what extent improvements can make it possible to carry future traffic at minimum cost. And finally, a detailed program must be prepared identifying new investments and their priorities. This article also discusses the economic evaluation of transport projects. The main emphasis is on the evaluation of highways because they usually present greater difficulties for economic evaluation and because in the future their expansion is likely to be more important in most developing countries than that of other modes of transport.