The use of cost-benefit analysis in public investment project complex appraisal

Abstract

The article deals with the problems of evaluating the efficiency of investment project implemented in public sector. Standard appraisal methods based on projected profit and expenditure are not applicable due to intangible nature of public project generated benefit. The article reviews foreign experience and examines the possibilities of using the cost-benefit analysis for public investment project evaluation. The first part presents the basic principles of analysis. The second part provides the interpretation of the results generated by the application of costbenefit analysis on investment project implemented in the public health sector. The article aims to reveal the usefulness and limitations of cost-benefit analysis in public investment project appraisal.