Guidelines for the Economic Analysis of IDB-Funded Projects

The objective of this document is to provide guidance on the preparation of the Economic Analysis Annex that must be completed with Bank Proposals for Operational Development (PODs) and included as an electronic link to the POD. For the Economic Analysis, project teams have the option of conducting a cost benefit analysis (CBA) or a cost effectiveness analysis (CEA). The annex should use the Template for Economic Analysis — provided with the Guidelines for the Application of the DEM — as the basis for presenting the economic analysis following the CBA or CEA template as appropriate. If neither CBA nor CEA is done, the annex must include a justification for not employing either approach as well as a discussion of the alternatives that were considered in project preparation and the benefits and externalities of the project