The purpose of the course is to contribute to the understanding of the concepts, principles and methods of Project Appraisal and how these principles can be applied to the planning and management of private and public works and investments. The course focuses on the description and analysis of project development and investment objectives, the basic methods of financial analysis and project financing problems, analyzes the methodologies for evaluating private and public projects and investments. In addition, the course focuses on evaluating transport projects, while typical exercises and case studies are presented and discussed. It also includes a series of exercises and practical problems related to the application of the assessment methodologies presented in the theoretical part, with the aim of getting students acquainted with reality and to be able to evaluate and effectively plan projects and investments.
The main course content includes the following sections:
The Concept of Project and Investment Appraisal, Introduction to Mathematical Financing Theory, Basic Concepts Analysis, Project Financing
Financing analysis of co-financed projects, sources of financing and financial return on investment, financial viability.
Investment in construction companies, description of evaluation methods.
Net Present Value (NPV) Method, Internal Interest Rate (IRR) Method, Benefit / Cost Ratio.
Private-economic evaluation, economic and social evaluation.
Evaluation of transport projects, direct and indirect impacts.
Estimation of costs and benefits of transport projects cost of accidents, benefit of users and reduction of transport costs, environmental impacts, quantifiable and non-quantifiable impacts.
Break-even point analysis, linear and non-linear model, sensitivity analysis.
Specific Project Evaluation Topics, choosing between mutually exclusive projects and investments.
The probability distributions for critical variables, expected value, standard deviation, coefficient of variation, risk analysis of a project.
Assessment of projects and investments under uncertainty, Assessment of acceptable risk levels.
Risk analysis and decision making using the “decision tree”.
Preparation for exams.
Specified evaluation criteria
Determination of weight
Use of theories and methods
Applying theories and methodologies to problems solving
Πολύζος Σ. (2018) Διοίκηση και Διαχείριση των Έργων, Εκδόσεις Κριτική, Αθήνα
Πολύζος Σ. (2017) Προγραμματισμός και Οργάνωση των Έργων, Εκδόσεις Τζιόλα, Θεσσαλονίκη
Ευρωπαϊκή Επιτροπή, Γενική Διεύθυνση Περιφερειακής Πολιτικής (08/2006), έγγραφο εργασίας 4, κατευθυντήριες γραμμές σχετικά με την μεθοδολογία για την διενέργεια ανάλυσης κόστους-οφέλους
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Australian Transport Council, (2007), National Guidelines for Transport System Management in Australia, Volume 2: Project Appraisal
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Economic Development Institute, (1996), The economic evaluation of projects, World Bank, Washington D.C. European Commission, Directorate General Regional Policy (2008), Guide to Cost – Benefit Analysis of investment projects, Structural Funds, Cohesion Fund and Instrument for Pre-Accession, Final Report
EVALSED the resource for the evaluation of socio-economic development (2007), european Commission, Directorate General Regional Policy
Florio, M., (2007), Cost-Benefit Analysis and Incentives in Evaluation. The Structural Funds of the European Union, Edward Elgar, Cheltenham
Guide to cost-benefit analysis of investment project, structural funds, cohesion funds and instrument for pre-accession, (2008), European Commission, Directorate General Regional Policy.
Guide to cost-benefit analysis of investment project (1997), structural funds – ERDF, cohesion fund and ISPA, European Commission, Directorate General Regional Policy, evaluation unit
HEATCO, (2006) Conference on a Harmonised European Approach for Transport Costing and project assessment, sixth Framework Programme 2002-2006
Kirkpatrick, C., Weiss, J., (1996), Cost-Benefit Analysis and Project Appraisal in Developing Countries, Edward Elgar, Cheltenham
Nijkamp P. (1975) A multicriteria analysis for project evaluation: Economic-ecological evaluation of a land reclamation project, Papers in Regional Science Vol. 35(1) pp. 87-111.
Lundolm, M., (2005), Cost-benefit analysis and the marginal cost of public funds, Stockholm University, Stockholm
Mishan, E.J., Quah, E., (2007), Cost Benefit Analysis, 5th edition, Routledge, New York
Potts, D., (2002), Project planning and analysis for development, Lynne Rienner Publishers, London
Ray, A. 1984, Cost-benefit analysis. Issues and methodologies, The Johns Hopkins University Press, Baltimore, Maryland.
Shofield, J.A., (1989), Cost-benefit analysis in urban and regional planning, Allen & Unwin, London
Transport Economics, Policy and Roverty Thematic Group (2005), Notes on the Economic Evaluation of Transport Project. The World Bank, Washington D.C