Intro
Preface to Third Edition
Contents
List of Figures
List of Tables
List of Boxes
Chapter 1: Introduction
Basic Ideas
The Project Planning Process
Changing Context for Project Analysis
Other Approaches
Outline of the Book
Chapter 2: Main Features of Projects, Resource Statements and Financial Statements
Project Viewpoints
Prices
Types of Projects
Conventions Used in Drawing Up Project Resource Statements
Investment Costs
Operating Costs
Working Capital
Benefits
Some Project Resource Flows

Resource Statements and Financial Statements
Use of Constant or Current Prices
Discounting
Discount Rate for Financial Analysis
Discount Rate for Economic Analysis
Conclusion
Further Reading
Bibliography
Chapter 3: Project Criteria
Project Criteria for Single Projects When Benefits Are Valued
Benefit-Cost Ratio (BCR)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Equivalence of Project Criteria
Different Points of View: Returns to Total Capital and to the Project Owner
Project Alternatives

Choosing Between Project Alternatives When Benefits Are Valued
A Further Approach to Choosing Between Project Alternatives
Decisions on Timing
Choosing Between Project Alternatives When Benefits Are Not Valued: Least Cost Analysis
Choosing Between Project Alternatives When Benefits Cannot Be Valued: Cost Effectiveness Analysis
Project Criteria and a Shortage of Investment Funds
Conclusion
Further Reading
Bibliography
Chapter 4: Theory Behind Economic Analysis of Projects
Background to Economic Pricing
Project Effects: Incremental and Non-incremental

Unit of Account and Numeraire
Application of Conversion Factors
Conflicts Between Economic and Financial Criteria
Conclusion
Further Reading
Bibliography
Chapter 5: The Domestic Price System of Economic Analysis
Traded and Non-traded Goods
Valuation of Traded Goods
Border Parity Pricing
Valuation of Non-traded Goods
Treatment of Labour Cost
Economic Value of Land
The Shadow Exchange Rate
Test for Trade Efficiency-Domestic Resource Cost Ratio
Conclusion
Further Reading

Appendix 1: Applications of Economic Analysis with Irrigation Project Illustration
The Project
Economic Analysis
Appendix 2: Irrigation Project and Domestic Cost Ratio
Bibliography
Chapter 6: The World Price System of Economic Analysis
Rationale for World Price Numeraire
Equivalence of the Two Systems
Traded Goods in a World Price System
Non-traded Goods in a World Price System
Labour in a World Price System
Land in a World Price System
World Price Units and Willingness to Pay (WTP)
Irrigation Illustration Using World Price Numeraire