HC Deb 20 November 1991 vol 199 c204W
Mr. Campbell-Savours

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the project appraisal guidelines which have replaced the minimum test of development soundness to which he referred in his answer to the hon. Members for Esher (Mr. Taylor) and for Edmonton (Dr. Twinn) on 15 October 1991,Official Report, columns 126–27.

Mrs. Chalker

Aid and trade provision projects are now assessed to ensure that they represent sound investments which are financially viable and technically sound and are likely to bring economic benefits to the recipient country. This assessment includes the following factors.

  • the market for the output;
  • the best way of supplying the output;
  • the rate of return on the project;
  • the customer's capability for implementing the project including subsequent operation and maintenance;
  • the recipient Government's policies in relevant sectors of the economy;
  • the cost burden of the project on the recipient country; and the environmental impact.