Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile
Governments worldwide face the difficult challenge of deciding which infrastructure projects to prioritize and select for implementation, given the limits of available funding and the need to attain their developmental goals. The key objective of t...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/959221538675961651/Prioritizing-Infrastructure-Investments-A-Comparative-Review-of-Applications-in-Chile http://hdl.handle.net/10986/30511 |
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okr-10986-305112022-03-13T01:39:29Z Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile Marcelo, Darwin House, Schuyler Raina, Aditi INFRASTRUCTURE INVESTMENT PRIORITIZATION PUBLIC INVESTMENT PRINCIPAL COMPONENT ANALYSIS MULTI-CRITERIA ANALYSIS TRANSPORT PUBLIC UTILITIES COST-BENEFIT ANALYSIS ROAD TRANSPORT WATER RESERVOIR WATER SUPPLY ENVIRONMENTAL IMPACT SOCIAL DEVELOPMENT PUBLIC-PRIVATE PARTNERSHIPS Governments worldwide face the difficult challenge of deciding which infrastructure projects to prioritize and select for implementation, given the limits of available funding and the need to attain their developmental goals. The key objective of this report is to conduct a comparative exercise between the World Bank's Infrastructure Prioritization Framework, a multicriteria analysis–based methodology to project prioritization, and a more complex cost-benefit analysis–based approach. The report focuses on Chile, which has a well-institutionalized evaluation process that uses cost-benefit analysis to assess projects on their quality and ability to generate value for money. The analysis compares the results of the Infrastructure Prioritization Framework alongside Chile's current cost-benefit analysis–based and multicriteria analysis approaches to the same subsets of projects in the road transport and water reservoir subsectors, respectively. The results show that the Infrastructure Prioritization Framework has application beyond its original proposition and can complement a traditional cost-benefit analysis by directly considering social and environmental policy goals that are otherwise difficult to quantify in a cost-benefit analysis. The analysis also finds that in Chile there is a discrepancy between the stated goals and objectives of the appraisal system and the actual implementation. In the case of transport sector projects, there is an evident deviation between cost-benefit analysis–based selection policy and actual decisions made for project implementation. In the case of water catchment selection, there is a bias toward projects with higher financial-economic performance as compared to social-environmental performance, despite policy intentions to afford consideration to environmental and social development goals. 2018-10-04T21:05:30Z 2018-10-04T21:05:30Z 2018-10 Working Paper http://documents.worldbank.org/curated/en/959221538675961651/Prioritizing-Infrastructure-Investments-A-Comparative-Review-of-Applications-in-Chile http://hdl.handle.net/10986/30511 English Policy Research Working Paper;No. 8602 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Chile |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFRASTRUCTURE INVESTMENT PRIORITIZATION PUBLIC INVESTMENT PRINCIPAL COMPONENT ANALYSIS MULTI-CRITERIA ANALYSIS TRANSPORT PUBLIC UTILITIES COST-BENEFIT ANALYSIS ROAD TRANSPORT WATER RESERVOIR WATER SUPPLY ENVIRONMENTAL IMPACT SOCIAL DEVELOPMENT PUBLIC-PRIVATE PARTNERSHIPS |
| spellingShingle |
INFRASTRUCTURE INVESTMENT PRIORITIZATION PUBLIC INVESTMENT PRINCIPAL COMPONENT ANALYSIS MULTI-CRITERIA ANALYSIS TRANSPORT PUBLIC UTILITIES COST-BENEFIT ANALYSIS ROAD TRANSPORT WATER RESERVOIR WATER SUPPLY ENVIRONMENTAL IMPACT SOCIAL DEVELOPMENT PUBLIC-PRIVATE PARTNERSHIPS Marcelo, Darwin House, Schuyler Raina, Aditi Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| geographic_facet |
Latin America & Caribbean Chile |
| relation |
Policy Research Working Paper;No. 8602 |
| description |
Governments worldwide face the difficult
challenge of deciding which infrastructure projects to
prioritize and select for implementation, given the limits
of available funding and the need to attain their
developmental goals. The key objective of this report is to
conduct a comparative exercise between the World Bank's
Infrastructure Prioritization Framework, a multicriteria
analysis–based methodology to project prioritization, and a
more complex cost-benefit analysis–based approach. The
report focuses on Chile, which has a well-institutionalized
evaluation process that uses cost-benefit analysis to assess
projects on their quality and ability to generate value for
money. The analysis compares the results of the
Infrastructure Prioritization Framework alongside
Chile's current cost-benefit analysis–based and
multicriteria analysis approaches to the same subsets of
projects in the road transport and water reservoir
subsectors, respectively. The results show that the
Infrastructure Prioritization Framework has application
beyond its original proposition and can complement a
traditional cost-benefit analysis by directly considering
social and environmental policy goals that are otherwise
difficult to quantify in a cost-benefit analysis. The
analysis also finds that in Chile there is a discrepancy
between the stated goals and objectives of the appraisal
system and the actual implementation. In the case of
transport sector projects, there is an evident deviation
between cost-benefit analysis–based selection policy and
actual decisions made for project implementation. In the
case of water catchment selection, there is a bias toward
projects with higher financial-economic performance as
compared to social-environmental performance, despite policy
intentions to afford consideration to environmental and
social development goals. |
| format |
Working Paper |
| author |
Marcelo, Darwin House, Schuyler Raina, Aditi |
| author_facet |
Marcelo, Darwin House, Schuyler Raina, Aditi |
| author_sort |
Marcelo, Darwin |
| title |
Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| title_short |
Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| title_full |
Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| title_fullStr |
Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| title_full_unstemmed |
Prioritizing Infrastructure Investments : A Comparative Review of Applications in Chile |
| title_sort |
prioritizing infrastructure investments : a comparative review of applications in chile |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/959221538675961651/Prioritizing-Infrastructure-Investments-A-Comparative-Review-of-Applications-in-Chile http://hdl.handle.net/10986/30511 |
| _version_ |
1764472299057053696 |