This study focuses on the economic feasibility of ODA projects using benefit-cost analysis. Within a short period, the surge in the number and scale of ODA projects has presented difficulty in the project management and the evaluation of the performance. Therefore, it is time to require the tool that enhances accountability by rigorously analyzing economic efficiency.
In addition, previous studies on the benefit-cost analysis of ODA projects are very rare. The purpose of this study is to present how to apply a benefit-cost analysis to ODA projects. As the procedures for the analysis are devised to reflect both the perspective of the recipient and donor countries to the extent possible, the application of the procedures enables ODA projects to be executed efficiently.
This study argues that the benefit-cost analysis of ODA projects should be more aggressively utilized. For example, the benefit-cost analysis can be applied to a preliminary investigation and/or a pre-feasibility study to verify the efficient enforcement of ODA projects before a feasibility study is performed. At the same time, we have to note both the uniqueness of ODA projects in distinction from other domestic public projects and the constraints that can occur when applying a benefit-cost analysis. For this purpose, the present study deals with the procedures and evaluation criteria of benefit-cost analysis, benefit and cost items, and existing practices.