The paper discusses the economic evaluation of road projects in developing countries as currently practiced in World Bank-supported projects. Evaluation of road decisions is necessary whenever there is a budget constraint. A basic principle of equity--but not the only one--is that those who receive the benefit also pay for it, thus designating the budget constraint. This is illustrated with two examples. It is also argued that a well-organized road sector, good road management, customer input, and private sector participation in finance and service delivery affect benefits and costs, and can increase the efficiency and level of service to customers.
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