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Cost-benefit analysis of EU projects

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COWI carries out cost-benefit analyses of investment projects for the EU Commission, documenting the financial and economic sustainability of the project.

The methodology we use for financial and economic analysis of investment projects is state-of-the art, while we adhere strictly to the EU Commission guidelines for cost-benefit analyses (CBA).

COWI carries out the analyses of EU investment projects for a large number of customers in most sectors. For the EU Commission, we also perform quick appraisals of investment projects for EU financing.

Financial analysis

In the financial analysis, project incremental cash flow forecasts are used to calculate required net return indicators. We also assess the financial sustainability of the project.

The result of the financial analysis is also used to calculate the EU grant rate.

Economic analysis

The economic analysis determines whether the project’s contribution to future improvements in social and economic welfare of the community is of greater value than the costs incurred by the national economy.

The economic analysis is based on the cash flow of the financial analysis. We identify, quantify and monetise external effects such as environmental, health, noise, congestion, social and economic impact.

Balanced opinion
The financial analysis sees the project from the point of view of the owner of the projects, while the economic analysis reviews the project from society's point of view.

The two analyses together provide a vital component for further social and economic development and determine whether the benefits of financing the project are satisfactory.

LAST UPDATED: 15.02.2017