IDG helps governments around the world introduce modern cost-benefit analysis techniques for large-scale infrastructure projects, within the context of helping countries establish a sound medium-term expenditure planning framework. IDG offers technical assistance and training to government agencies to help them improve their processes for capital budgeting and project appraisal.
Project Experience
Haiti Increasing Efficiency of Public Investment: IDG, in partnership with Cambridge Resources International (CRI), assisted with strengthening Haiti's public investment system through expanding government capacity and promoting transparency in making investment decisions. IDG provided training in project design, cost benefit analysis, and monitoring and evaluation to improve the analytic capacity of the government to design public investment projects.The high-quality training program contributed to an increase in the net benefits of public investment and involved analyzing projects in conjunction with the Government of Haiti from idea, inception, design, pre-feasibility, and full feasibility. Specific training topics included analysis of public-private partnerships and how they benefit infrastructure investment, as well as appraisals of projects under current regulatory regimes to determine if they increase national welfare. The complex and multifaceted nature of the project required a team of experts with a diverse range of skills in areas including cost benefit analysis, project finance, public-private partnerships, regulation of monopolies, M&E, public investment, financial modeling, and economic analysis. The team consistently exceled in rapid mobilization, adaptability, and coordination between international personnel, local staff, and the home office.
Kenya Fiscal Transparency Innovation Fund (FTIF) Investment Appraisal and Risk Analysis Project: IDG carried out this project to help develop the capacity of Government of Kenya (GOK) officials to institutionalize the use of rigorous criteria for economic efficiency in project evaluation. Building GOK capacity to reduce inefficiencies in public spending supported the FTIF's longer-term goal of improving transparency in the decision-making process overall. To achieve these objectives, IDG provided structured cost benefit analysis, investment appraisal, and risk analysis trainings to build the capacity of key institutions in the GOK. The project team carried out a thorough analysis of the existing public investment management procedures within the country to identify potential areas for reform and establish internal policy directives that would meet technical standards and procedures for project appraisal and evaluation.
Azerbaijan Competitiveness and Trade (ACT) Project: Under this project, IDG organized and conducted a four-week training on public investment appraisal in conjunction with the Institute for Economic Reform (IER) under the Ministry of Economic Development, for around 30 government officials. The training was organized in collaboration with partner CRI, directed by Glenn Jenkins, a leading authority on cost-benefit analysis and project appraisal. The course covered the following topics: components of an integrated project appraisal; alternative investment criteria; the use of debt; cash flow analysis; financial modeling from alternative points of view; inflation, interest rates, and exchange rates; financial and economic valuation; cost-effectiveness analysis; risk analysis; contracting issues; microeconomics of cost-benefit analysis; opportunity cost of foreign exchange; measuring economic prices of tradable and non-tradable goods; measuring costs and benefits; the economic cost of capital; assessing environmental impact; evaluating willingness to pay; assessing non-competitive markets; and stakeholder analysis. The course considered case studies in many sectors: electricity, water, transportation, telecommunications, education, health, roads, ports, and energy. The content of the program was equivalent to two graduate level courses in applied economics and finance. Participants were from the Ministry of Economic Development, the Ministry of Finance, the Ministry of Transportation, the Ministry of Agriculture, the Ministry of Youth and Sport, the Ministry of Health, the Ministry of Emergency Situations, AzerEnergy Joint Stock Company, AzerSu Joint Stock Company, the State Committee on Urban Planning and Architecture, the Azerbaijan State Institute of Water Management Units Design, the Azerbaijan Scientific Production Association for Hydrotechnical Facilities and Land Development, and the State Oil Fund of Azerbaijan.
Synthesis Report for Cost-Benefit Analysis: IDG synthesized the findings from previously completed ex-ante and ex-post CBAs on agricultural value chain projects in eleven countries including Bangladesh, Ghana, Guatemala, Ethiopia, Liberia, Malawi, Mali, Rwanda, Senegal, Uganda, and Zambia. The IDG-CRI Team standardized data across countries, identified trends and findings that may inform future projects, and provided recommendations to streamline and increase efficiency in the CBA process.
Including Gender Considerations in Cost-Benefit Analysis: IDG developed guidelines to improve the assessment abilities regarding gender and the effects of gender-based violence (GBV) when undertaking CBA programs. The Gender CBA Team carried out comprehensive research and analysis of previous CBAs and recalculating their results, taking into consideration gender-related factors, in order to increase the quality and usability of the data. IDG also created a practical guide to serve as a stand-alone document on incorporating gender and GBV into future CBA work and CBA training.
Ex-ante and Ex-post CBAs of Agricultural Value Chains in Senegal, Rwanda, Liberia, Mali, and Malawi: IDG carried out CBAs for projects focused on agricultural value chain development. For each country, the team collected data in the field, developed a CBA model, and conducted financial and economic analysis including stakeholder analysis (financial cash flows for relevant points of view) and sensitivity analysis. The team produced final reports identifying the costs and benefits of the interventions and provided recommendations for interventions and the portfolio generally.