Notes on the Economic Evaluation of Transport Projects

Experience has shown that money
compensation payments to individual citizens are ineffective
when used alone as a means to achieve the Bank's aims
and World Bank for evidence on the Bank's experience].
Instead, the Bank's advice is that compensation
payments should be a part of a wider, coordinated package of
development assistance. It is not the purpose of this Note
to describe how such a package should be developed, or
indeed how the package as a whole should be evaluated.
Rather, the question addressed in this Note is the narrower
one: How should money compensation payments be evaluated?
Section 2 begins by asking what costs the payments are
intended to compensate for, and on what basis the value of
compensation should be estimated. Section 3 continues to
consider how institutional arrangements affect the way
compensation payments are designed and channeled in
practice. Section 4 turns to the benefits of resettlement
compensation and Section 5 brings these strands together to
consider how compensation payments should be evaluated
within the economic evaluation of World Bank transport projects.