Economic Analysis of Projects: A Tool for Informed Financing Decisions

Project economic analysis (PEA) aims to evaluate ex-ante the various impacts of a project on all stakeholders, beyond its mere financial profitability. Long used by donors, it has come in for a lot of criticism (complexity, cost, technocracy). And, as aid practices have evolved, it has gradually given way to other approaches. Yet, in the current context, EAF remains a valuable tool for informing decisions, structuring debates, comparing options and integrating social, economic and environmental issues. This article outlines a number of avenues and recommendations for revitalizing PEA, with the aim of making public investment more profitable, inclusive and sustainable.