A Quantitative Analysis of the Performance of Transportation Projects in Developing Countries

Abstract

This paper presents the results of a detailed quantitative analysis of performance metrics of a sample consisting of 89 transportation projects sponsored by the World Bank. The sample and a subset consisting of 65 projects were evaluated using the performance metrics of project cost, schedule and scope. The effect of project size (dollar value) and project duration on performance metrics was investigated. Also, the achievement of project goals and potential improvement in planning and estimating over time (the learning effect) was studied. It was found that, in general, in transportation projects sponsored by the World Bank, costs are overestimated and schedules are optimistic. The outcome with respect to cost seems counter‐intuitive because previous work by other researchers had shown a systematic underestimation of project costs. There is significant evidence that there are no efficient controls in place to predict or prevent schedule delays. The study also showed that during the past 15 years, no improvement (learning effect) was evident in project cost and duration estimation as the level of accuracy has not changed significantly. Further, it is observed that project duration did not affect the performance with respect to cost and delay.