Cost-Benefit Analysis (CBA) Workplan Tool

Introduction

The Kosrae State Government (KSG) is undertaking a reform program to improve the effectiveness, efficiency and resilience of its overseas development assistance (ODA). This work has lead to the development of a Co-ordination of ODA Policy (Policy No.35) and related Procedure for Requesting and Receiving ODA (Procedure No. AD103).

To support the operation of the Co-ordination of ODA Policy and related Procedure for Requesting and Receiving ODA (hereafter referred to as the ‘ODA policy and ODA procedure’), an ODA Handbook has been developed along with a series of supporting guidance notes and tools.

This document is the workplan tool to supporting conduct of cost-benefit analysis (CBA) studies. Cost-benefit analysis (CBA) is a policy analysis methodology that can be employed to help develop a good quality, evidence-based proposal. More specifically, a CBA study can inform and help demonstrate:
i. which option(s) is the best one to address a given policy problem – and thus should be included in a given policy proposal. [refer section II (D) of the Overseas Development Assistance (ODA) Request Format]
ii. how policy design should best deal with certain risk factors? For example, which policy option (or policy design modification) most efficiently manages climate change and disaster risks. [refer section II (E) of the Overseas Development Assistance (ODA) Request Format]
iii. whether the proposed policy option(s) represents a worthwhile use of resources (relative to other competing uses) – and Governments’ should invest in the policy.
[refer section II (F) of the Overseas Development Assistance (ODA) Request Format]

The purpose of this CBA WORKPLAN TOOL is to help Kosrae State Government (KSG) officials who are responsible for preparing a policy proposal to organise a CBA study. It essentially maps out the types of information and data that needs to be collected; where this information will be collected from; who is responsible for doing related activities; and the timeline for doing all of this.