Learning Objectives

Upon completion of the course, students will be able to:
1. Determine the importance of the Evaluation of a technical project, a transportation project and an investment in general, describe the concept of the Evaluation of a project, as well as the factors that influence it.
2. Know the basic concepts of project financing and solve corresponding problems using financial mathematics.
3. Know the evaluation methods, the differences between them and apply them to Private-economic and economic-social evaluation.
4. Calculate the direct and indirect impacts of transportation projects, proceed with their evaluation.
5. Know the "Break-even" Analysis, sensitivity analysis, evaluation of projects and investments under uncertainty.
6. Know the risk analysis of an investment decision using the decision tree.
1. Identify the importance of Evaluating a Technical Project, a Transport Project and an Investment in general, to describe the concept of Evaluating a Project, and the factors that influence it.
2. Know the basic concepts of project financing and solve related problems using mathematical

Course Purpose

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:
1. The Concept of Project and Investment Appraisal, Introduction to Mathematical Financing Theory, Basic Concepts Analysis, Project Financing
2. Financing analysis of co-financed projects, sources of financing and financial return on investment, financial viability.
3. Investment in construction companies, description of evaluation methods.
4. Net Present Value (NPV) Method, Internal Interest Rate (IRR) Method, Benefit / Cost Ratio.
5. Private-economic evaluation, economic and social evaluation.
6. Evaluation of transport projects, direct and indirect impacts.
7. 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.
8. Break-even point analysis, linear and non-linear model, sensitivity analysis.
9. Specific Project Evaluation Topics, choosing between mutually exclusive projects and investments.
10. The probability distributions for critical variables, expected value, standard deviation, coefficient of variation, risk analysis of a project.
11. Assessment of projects and investments under uncertainty, Assessment of acceptable risk levels.
12. Multi-criteria appraisal methods.
13. Risk analysis and decision making using the "decision tree".
14. Preparation for exams.

Suggested Bibliography:

• Polyzos S., (2018), Project Management, 3rd Edition, Kritiki Publications, Athens.
• Polyzos S., (2017), Project Planning and Organization, 2nd Edition, Tziola Publications, Thessaloniki.
• Theophanides S. (1985), Handbook of Investment Appraisal, Papazisis Publications, Athens
• Asian Development Bank, (2002), Handbook of integrating risk analysis in economic analysis of project, Manila.
• Australian Transport Council, (2007), National Guidelines for Transport System Management in Australia, Volume 2: Project Appraisal
• Belli, P., Anderson, J. R., Barnum, H.N, Dixon, J. A., Tan, J-P, (2001), Economic Analysis of Investment Operations, Analytical Tools and Practical Applications, WBI, World Bank, Washington D.C.
• Brown W. Brayan, (1972), Public investment criteria in cost-benefit analysis. A thesis in economics submitted to the Gratuate Faculty of Texas Tech University, AC 805, T3 1072, No 11, Cop. 2
• Chvanov K., Okladnikov G., Plakhuta D., Stanyakin P., (2009), Issues in Public Investment Evaluation, Public Policy Paper, St. Retersburg State University.
• Dixit, A.K., Pindyck, R.S., (1994), Investment under uncertainty, Princeton University Press, New Jersey.
• 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 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.

Scientific journals:

• Journal of Business Finance & Accounting,
• The Appraisal Journal,
• International Journal of Production Economics,
• Management Accounting,
• Journal of Business Finance & Accounting,
• International Journal of Project Management,
• Impact Assessment and Project Appraisal
• Project Appraisal
• Construction Management and Economics.
• Environment and Planning
• Journal of Environmental Planning and Management
• Journal of Environmental Policy & Planning
• Journal of Planning Literature
• Journal of Regional Science
• Topos
• Aeichoros