Abstract

Six projects from six countries were selected as the cases for detailed analysis in this study. They are from Argentina, Botswana, India, Kenya, Lao PDR and Paraguay, representing a wide range of geographical distribution. Also, the extent of the effect of economic downturn which these countries experienced ranges a wide variety. In an economic downturn, uncertainties increase with many inputs of road projects Cost Benefit Analysis (CBA), including fuel prices, levels of demand, investment costs and maintenance availability. Also, important parameters of project evaluation such as discount rate and value of time need to be more carefully scrutinized. Therefore, it is very important for the developing countries to have good understanding about the effects of the variability of these inputs/parameters on project viability and the ranking of road investments. It is a role of the developing agencies to conduct a systematic analysis of these effects and disseminate the findings and knowledge obtained. The objective of the study is to obtain insights regarding the effects of varying inputs and parameters on the viability of road projects through case studies using Highway Development and Management Model (HDM-4), thereby to facilitate the formulation and implementation of road projects that increase the welfare of the society under the environment of increased uncertainty in an economic downturn. The results of the study will be summarized in a transport note as a discrete knowledge product and disseminated among various stakeholders including developing agencies staff, government officials and donor communities. To assess the effects of increased uncertainty with inputs of cost benefit analysis on the economic viability of road projects, this study first investigated the range of variability of the inputs for the six selected projects/countries. It was found that the variability ranges differ by country reflecting the degree of decrease in transport demand and relative change in factor prices due to economic downturn. Document type: Book

Abstract

This study was conceived on the basis of a request by Ukraine’s Ministry of Agricultural Policies and Food (MoAPF). In 2013, the MoAPF explored the World Bank’s interest for investing in grain hoppers, following a deficit of hoppers and concerns about related difficulties for grain transport. In response, the World Bank secured resources from the Multi Donor Trust Fund for Trade and Development (TF016693) to carry out a review of grain logistics in Ukraine in order to better understand the challenges facing the sector. The objectives of this report are to assess the functioning of the grain logistics system, identify bottlenecks and put forward practical recommendations for investments and reform. Research points to five key drivers of current high logistics costs: (i) lack of regulatory clarity and sub-optimal management of public assets that create barriers to private investments; (ii) underutilization of river transport, (iii) underinvestment in rail transport; (iv) inefficiencies in storage management, and (v) excessive use of road transport. However, there are two important limitations of the report that should be taken into account. First, the ongoing crisis remains a source of uncertainty. It has so far had limited impact on grain production and logistics, yet access to finance has become more difficult and other impacts might arise in the future. Second, there are two areas that the report does not address: customs and ports. Both are important elements of logistics costs and deserve a comprehensive analysis in the future.