Adequate infrastructure is essential to economic growth. Investments in transportation and infrastructure systems such as roads, ports, railways, waterways and utilities, provide the foundation for economic development. But the capital available to provide that infrastructure is always limited, and subject to many competing demands. Regardless of whether funds are provided by the public or the private sector, careful analysis and evaluation of infrastructure projects is essential if that scarce capital is to be wisely allocated.

There are two main perspectives from which this analysis and evaluation may be undertaken:

• An economic perspective, in which the focus is on the overall impact on the material well-being of the society as a whole
• A financial perspective, in which the focus is on the monetary return to the proponent of the project.

Although there is considerable common ground in the techniques that are applied in undertaking these two forms of analysis, they are distinctly different.

It is also important to distinguish between economic evaluation and economic impact analysis. Economic evaluation is normative: it is designed to assess whether or not a project will, on balance, improve economic welfare. Economic impact analysis is descriptive: it is intended to describe the effect that a project will have on certain measures of economic activity, but provides no direct guidance on whether or not a project is worthwhile.

Benefits of Using Meyrick

Meyrick and Associates economists and financial analysts have many years of experience in evaluating projects in the transport and utilities sectors. We understand both the power and the limitations of each form of analysis, and our thorough familiarity with financial analysis, economic evaluation and impact analysis techniques allows us to discriminate clearly between them.

Using the sound training and extensive practical experience of our consulting staff, we work closely with our clients to ensure that projects are appropriately defined, benefits and costs are clearly identified, forecasts are realistic and appropriate sensitivity testing is undertaken.

Some of our Projects

Fremantle Port Authority: Economic and financial evaluation of Outer Harbour container terminal

Office of the Maritime Promotion Commission, Thailand: Economic and financial study of option to transfer steel coil transport from road to rail

WA Department of Infrastructure: Evaluation of the economic benefits of substitution of coastal shipping services for certain road movements

Asian Development Bank: Financial evaluation of domestic shipping in Marshall Islands and Fiji

World Bank, Cambodia: Review of public expenditure in road sector

ADB, People's Republic of China: Economic and financial evaluation of tolled expressway and related local roads development program

WA Department of Transport: Economic Evaluation of a new port at Oakajee.

 Download a brochure on Financial and Economic Evaluation of Infrastructure Services