Analysis of the System of Transport Appraisal Implemented in France and some Methodological Innovations

This paper summarises the development of the evaluation of transport infrastructure projects in France. It highlights the 1982 “LOTI” law, which analysed whether investments delivered the wider economic benefits expected. It discusses the 1985 change from a project ranking rule based on Internal Rate of Return to one based on a particular value for money metric (Net Present value/subsidy) and draws lessons from the LOTI reports for motorway investments and for high-speed rail lines. It also considers the role of permanent observatories in evaluation. Finally, it addresses the inclusion of spatial equity issues in evaluations and the ex-post evaluation of the ranking of a set of projects in a multi-year program.