Division 1.3

A CBA shall comply with the following principles:

• CBA must be performed against predetermined policy objectives;

• CBA requires to define the relevant social context and perspective (local, regional, national, transboundary, global);

• CBA requires a common measurement unit (usually monetary);

• CBA requires a comparison of a scenario of the new investment with a scenario without the new investment (incremental analysis^f1);

• CBA requires to state a reference period relevant for the project;

• CBA requires consideration of residual values of investment;

• CBA requires a risk assessment to deal with uncertainty.