Value for money
Efficient and cost-effective infrastructure is key to achieving many public policy objectives and supporting sustainable economic growth. Fiscal sustainability, affordability and value for money should be at the heart of the infrastructure decision-making process.
Why is this important?
Ensuring fiscal sustainability is an integral part of ensuring the success of infrastructure projects. This involves embedding evidence-based project appraisals, implementing an effective prioritisation process and ensuring affordability within public budgets. These methodologies are key to enshrining accountability, clarity and transparency in the decision-making process. They also ensure the overall value for money of infrastructure investments.
Use of a formal process to evaluate value for money in infrastructure projects in OECD countries, 2020
Methodologies used by OECD countries to assess infrastructure projects, 2020
Country case studies
- London’s congestion charge and its low emission zones
- Norway’s evolving incentives for zero-emission vehicles
- Germany’s sponge cities to tackle heat and flooding
- Austria’s “KlimaTicket” to promote low-carbon mobility
- Innovative mobility services in Finland
- U.S. International Development Finance Corporation
- Major Projects Review Group
- Multi-criteria analysis manual
- Public Spending Code
- Infrastructure Development Bank
- Canada Infrastructure Bank
- Fiscally sustainable wind farms (UNEP, 2021)
- Infrastructure Economic Account (GIH, 2021)
- Compact City Development (GIH, 2021)