The book presenst the main elements, the scope and the use of cost-benefit analysis (CBA) and is focused on the application of the CBA in the Republic of Croatia in the context of cohesion policy. It is coherent with Guide to cost-benefit analysis of investment projects of the European Commission for the period 2014-2020, the Commission’s Implementing Regulation 2015/207, the instructions of the European Investment Bank for the economic evaluation and takes into account the specific aims of Croatian operational programs.
The first part of the book shows the development and application of cost-benefit analysis with a focus on its role in project preparation and submission of documents necessary to receive co-financing form the EU funds. The content of cost-benefit analysis is also briefly presented.
The second part of the book explains the necessary elements of the CBA: (i) presentation of the context;(ii) Definition of objectives; (iii) Identification of the project; (iv) Results of feasibility studies with demand and option analysis;(v) Financial analysis; (vi) Economic analysis; (vii) Risk assessment.
All the chapters in the second part of the book have the same structure: first the rules are presented and explained, this is followed by short instructions and an example (Peljesac Bridge). Comments point to the possibilities and limitations of cost-benefit analysis and common mistakes.
The book should help in mastering methodology and distinguishing the quality of the study from the quality of the projects and thus contribute to better preparation and selection of investment projects.
The reviewers of the book are prof. PhD Tarzan Legović – Institute Ruđer Bošković, Zagreb, PhD Sanja Tišma, IRMO and prof. PhD Edita Stojić Karanović – Institute for internatioanl politics and econmy.