France.

This report presents the principles common to all types of investment appraisal, and then describes how they are applied in France to road, rail and inland waterways projects, and especially to urban transport. In France, the appraisal of transport infrastructure projects follows a standard methodology, based on the economic theory of surpluses, and adapted to the specific features and situation of each mode. In this adaptation of the theory, account must be taken of: (1) time savings; (2) improvements in safety; (3) environmental impact; (4) local development; (5) conditions prevailing in the industrialised countries since the economic downturn. The French methodology for appraising road infrastructure was stated clearly in a government circular entitled: Instruction sur l'evaluation des projets routiers en rase campagne (see IRRD 119003) first published in 1963 and updated several times since then; the latest edition was issued in 1986. Special methods are used for estimating the social and financial returns on tolled motorways and rail investment. For tolled motorways, but for only some rail investment, there is a difference between the social and financial returns. Inland waterways are managed, using principles similar to those for roads. However, the methodology for appraising urban projects is quite different from that used for non-urban projects, mainly because decisions on urban projects are taken at a local level.