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Project Appraisal

Swagat Kishore MishraDepartment of Economics and Finance

WILP: Project Appraisal

Lecture 5

Email: [email protected]

Tel. 0832-2580207 (O) 08879506995 (M)

1Course No. ETZC414 Project AppraisalAugust 30, 2014
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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Outline

Introduction to Technical Analysis

Significance: Case Study from Road Construction

Choice of Technology

Material Inputs & Utilities, Machineries &

Equipment, Alternatives for Concrete Project

Making


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For manufacturing a product more than one technology are

available.

Factors: plant capacity, principal units, investment outlay,

production cost, product mix etc.

Technical know-how

August 30, 2014 Course No. ETZC414 Project Appraisal25.07.13

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Introduction to Technical Analysis

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General Project Analysis

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Projects Technical Analysis

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An example: River Dam Project

Technical Analysis

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Significance: Case Study

Road Transport

With greater emphasis on ensuring equality and fairness and

addressing socio-economic inequalities, it is good practice to

consider the impacts of transport interventions on different

groups of people within society, both to enable negativeimpacts to be 'designed out' or mitigated and to develop

interventions that deliver more positive benefits for particular

groups.

These impacts should be addressed prior to formal appraisalin support of a funding approval; this should ensure that

potential impacts are properly addressed, with potential costs

of mitigation also being taken into account.

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People in communities suffering from the effects of high flows

of traffic are often not the people who are benefiting from high

levels of mobility. In some cases, these people might be living ina deprived community, who have low levels of access to a car,

and are suffering from the impacts of other people's mobility

but not experiencing higher levels of mobility themselves.

Most transport interventions are based on generating userbenefits, which are usually experienced by people located

beyond the immediate location of the transport intervention. It

is important to understand the distributional effects of user

benefits, by area and social group.

Impacts on in-work trips are experienced by businesses and

not individuals and are not applicable for SDI analysis.

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Social and Distributional Impacts (SDI)

http://www.dft.gov.uk/webtag/documents/pr

oject-manager/unit2.13.php#013

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The term 'Social and/or Distributional Impacts' (SDIs) was first

introduced within transport appraisal frameworks through theDepartment's Guidance for the Transport Innovation Fund,

which stipulated a requirement to assess SDIs within the full

appraisal of road pricing interventions.

August 30, 2014 Course No. ETZC414 Project Appraisal 10

Prior to undertaking the actual SDI

appraisal, there are a set of steps that

the SDI analyst should undertake,

which are:

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Step 0

Initial screening:

consideration of whetherthe nature of the proposal

will increase potential for

SDIs (positive or negative).

Identification of likely

impacts that will requirefurther SDI screening.

Justification required for

any decision not to pursue

individual impacts further.

Step 1 Confirm the areas impactedby intervention.

There is a need to selectspatial levels appropriate to

each impact.

Step 2

Identify social groups in

areas affected by the

intervention.

This will involve research to

build a detailed profile of

each area.

Step 3 Full screening.This will include a check on

the initial screening.

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'Social' impacts lend themselves to assessing the social

change processes invoked by the introduction of a transport

intervention.

These impacts include the effects on communities such as

cohesion, stability and services, people's way of life (how they

live, work and play), the environment such as the quality of the

air and landscape, health and well-being and personal fears

and sense of security. There are points of overlap between social, economic and

environmental impacts, because economic and environmental

impacts can have social consequences and vice versa. Social

research provides one of the toolkits, alongside economics andphysical science, which can be used to measure and explain

these impacts.

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'Distributional' impacts relate to the extent to which there are

differences in the impacts of interventions across different

groups in society.

For example, the noise impacts of an intervention will affectdifferent groups of households, with some experiencing increases

in noise, and others experiencing decreases. Impacts such as

noise and air quality arising from a transport intervention tend to

be geographically concentrated, for example affecting some

particular residential areas, and the impacts on households willtherefore depend on which households are present at the

affected geographical locations.

Households can be characterized in different ways, including

income levels, and the distribution of impacts can therefore be

assessed using alternative ways of characterizing the affectedgroups.

Other impacts may be less spatially concentrated and people

affected may come from a variety of groups.

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The evidence on the social and distributional impacts of

transport interventions is described in Assessing Social and

Distributional Impacts in Transport Appraisal

High levels of noise are experienced adjacent

to busy transport corridors.Similarly, poor air qualityis also experienced in

areas adjacent to busy and congested roadcorridors, which often pass through deprived

urban areas.

Children and older people are at particular risk

from accidents on the road network (as

pedestrians), whilst young male drivers andmotorcyclists are also high risk groups.

The affordability of transport

(both in terms of public transportfares and the costs of running a

car) is often a problem for young

people and low-income

households, particularly for travel

to employment and education.

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Choice of Technology

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Material Inputs & Utilities

Raw materials

Processed industrial material

Auxiliary material

Factory supplies

utilities

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Requirement of machinery and equipment is dependent upon

plant capacity and production technology.

Alternatives for transforming an idea into a concrete project:

nature of the project, production process, quality of products,

scale of operation and time phasing and location.


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Key Words

Technical analysis

Social and distributional impacts

Choice of technology Material inputs

Utilities


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THANKYOU


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Documents

ET ZC414-5