IMPROVING THE PROJECT APPRAISAL SYSTEMS FOR ROAD INFRASTRUCTURE IN DEVELOPING COUNTRIES

This paper analyses the importance of project appraisal as a decision-making tool for projects that requires government interventions. Although the road infrastructure projects stimulate the economy of the country, most of the governments around the world face budget constraints and development challenges in implementing such projects. The project appraisal helps in the prioritization of projects for investment based on economic, social, and environmental importance in order to avoid wastage of limited public funds. However, in developing countries, the appraisal process acts as a means to justify investment decisions and not as a decision-making tool. In this study, we will review the appraisal practice from selected countries and recommend a solution to improve the appraisal process in developing countries in order to ensure that appraisal can act as decision-making tools for government spending.