Contents

Part 1: The pre-contracting phase: the importance of appraisal
1. Introduction
2. Background on project identification and preparation
3. Elements of project appraisal
4. Basic principles and concepts of project appraisal
5. Project financial analysis: a base for economic appraisal
6. Undertaking project economic analysis
7. Risks and uncertainty
8. Conclusion

Part 2: The Songo Songo Gas Development and Power Generation Project (Tanzania)

This report highlights the main elements of infrastructure appraisal. It commences with a background discussion of the elements associated with project identification and design, and how this fits into the planning process. Key concepts and measures used in project appraisal are then introduced. This is followed by an outline of the financial analysis and economic analysis that need to be undertaken, and a review of the risks and uncertainties encountered in project appraisal. The report closes with a case study of a large-scale infrastructure project in Tanzania.