A new version of the "Guide to Cost-Benefit Analysis of Investment Projects" has been published by the DG Regional Policy. The guide has been prepared by the Commission and it is particularly addressed to people working on cost-benefit analysis of "major projects" co-financed by EU funds in the framework of Cohesion Policy. It provides useful methodological guidance to project promoters in the Member States and candidate countries. At the same time, it serves as a reference to Commission officials involved in the appraisal of "major projects".

The Guide to Cost-Benefit Analysis of Investment Projects updates and expands the previous edition (2002), which in turn was the follow up of a first brief document (1997) and of a subsequent substantially revised and augmented text (1999). The new edition builds on the considerable experience gained through the dissemination of the previous versions and particularly after the new investment challenges posed by the enlargement process.

The objective of the Guide reflects a specific requirement for the EC to offer guidance on project appraisals, as embodied in the regulations of the Structural Funds, the Cohesion Fund, and Instrument for Pre-Accession Assistance (IPA). This Guide, however, should be seen primarily as a contribution to a shared European-wide evaluation culture in the field of project appraisal.

The first chapter presents the scope and objectives of cost-benefit analysis, together with the legal framework applicable to the appraisal of "major projects". Chapter two proposes an agenda for the project examiner and illustrates the six steps for a good appraisal. The third chapter outlines the application of cost-benefit analysis to specific fields of intervention (e.g., transport, environment). Chapter four presents five case studies (road, rail, waste, water and industrial investments). In addition, the new guide includes annexes discussing technical issues (e.g., the choice of the discount rate, risk assessment), a glossary and a bibliography.

The guide has been submitted by TRT Trasporti e Territorio and CSIL Centre for Industrial Studies and it has been written by a team selected by the Evaluation Unit, DG Regional Policy, European Commission, through a call for tenders by restricted procedure following a call for expressions of interest n. 2007.CE.16.0.AT.024.