New Approach to Appraisal
Encyclopedia
The New Approach to Appraisal (also NATA) was the name given to a multi-criteria decision framework
used to appraise transport projects and proposals in the United Kingdom
. NATA was built on the well established cost-benefit analysis
and environmental impact assessment
techniques (such as those contained in the Highways Agency
's Design Manual for Roads and Bridges
(DMRB)) for assessing transport projects and proposals.
In April 2011 the Coalition Government decided that the term NATA would no longer be used. However, the principles and key elements of the NATA framework remain in the Department for Transport
's Webtag
Transport Analysis Guidance.
Accompanying documents to that review list the ASTs for 68 trunk road schemes and provided initial guidance on how NATA was to be applied to transport projects.
A subsequent published study by academics at the Institute of Transport Studies, University of Leeds
found that the decisions made by Ministers in respect of the road schemes were statistically significant in terms of how they related to the information about the schemes included on the ASTs. This demonstrated that Ministers were taking account of the information provided on the ASTs in a consistent way.
On 30 October 2007, the DfT published a consultation document - The NATA Refresh: Reviewing the New Approach to Appraisal - alongside, and as part of, its new transport strategy document 'Towards a sustainable transport system: Supporting economic growth in a low carbon economy'. The aim of the NATA Refresh consultation document is to seek views on how NATA should be developed.
practice in the UK for many years. NATA was designed to build on that good practice by bringing together the mass of detailed appraisal information about the impacts of a transport proposal, some of which are expressed in monetary terms, some using quantitative measures or some just in qualitative terms. A key aspect of NATA is the use of standard worksheets to collate the large amount of cost-benefit analysis
and environmental impact assessment
data and then present it in a more concise, consistent and balanced way.
Within the NATA framework, the impacts of transport projects are categorised in terms of five high level criteria (economy, safety, environment, accessibility and integration), reflecting the Government’s objectives for transport. Each of these criteria is divided into a number of sub-criteria and it is against each of these sub-criteria that the impacts of a proposal are assessed and presented in a 1 page Appraisal Summary Table (AST).
The division of the five criteria is shown below:
projects and local authority road schemes and to other modes of transport, including the major programme of Multi-Modal Studies, initiated by the Government, that were carried out between 1999 and 2003, Local Transport Plan
major public transport schemes, as well as rail proposals. In 2003, a web based set of Transport Analysis Guidance (commonly referred to as WebTAG
) based on NATA principles, was launched by the Department for Transport
(DfT).
A further development of NATA has been its use of an approach that disaggregates impacts between all those who are affected by a proposal, rather than the traditional cost-benefit approach of simply assessing the net impacts on society. While the two approaches are equivalent at the aggregate level, the NATA approach allows a more detailed analysis to be made of those who gain and those who lose as a result of a proposal. However the NATA approach raises issues regarding the precise definition of the impacts that are included in the numerator and denominator of the Benefit-Cost Ratio
.
As well as setting out methods for appraising transport proposals, WebTAG contains values that should be used to assess different types of impacts, including the value of time
and vehicle operating costs.
A UK Government Multi-Criteria Analysis (MCA) manual, originally produced by the former Department for Transport, Local Government and the Regions and now overseen by the Department for Communities and Local Government
, highlights NATA as an example of MCA being applied in practice to a major area of UK Government policy.
, Welsh Assembly Government
and Northern Ireland Assembly
, the NATA principles have been adopted by the relevant transport authorities in those countries.Transport Scotland
has issued its own transport appraisal guidance, 'Scot-TAG' (Scottish Transport Appraisal Guidance), which draws heavily on NATA. In Summer 2006 the Welsh Assembly Government consulted on the development of its NATA-based transport appraisal guidance, WelTAG, and published its guidance in June 2008.http://new.wales.gov.uk/topics/transport/publications/weltag?lang=en The appraisal procedure used by the Roads Service in Northern Ireland
's Department for Regional Development
is based on the five NATA criteria.
and a series of Economic Evaluation Notes prepared for Bank staff in 2005 drew heavily on many elements within the NATA framework.
Multi-Criteria Decision Analysis
Multiple-criteria decision-making or multiple-criteria decision analysis is a sub-discipline of operations research that explicitly considers multiple criteria in decision-making environments. Whether in our daily lives or in professional settings, there are typically multiple conflicting criteria...
used to appraise transport projects and proposals in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. NATA was built on the well established cost-benefit analysis
Cost-benefit analysis
Cost–benefit analysis , sometimes called benefit–cost analysis , is a systematic process for calculating and comparing benefits and costs of a project for two purposes: to determine if it is a sound investment , to see how it compares with alternate projects...
and environmental impact assessment
Environmental impact assessment
An environmental impact assessment is an assessment of the possible positive or negative impact that a proposed project may have on the environment, together consisting of the natural, social and economic aspects....
techniques (such as those contained in the Highways Agency
Highways Agency
The Highways Agency is an executive agency, part of the Department for Transport in England. It has responsibility for managing the core road network in England...
's Design Manual for Roads and Bridges
Design Manual for Roads and Bridges
The Design Manual for Roads and Bridges is a series of 15 volumes that provide official standards, advice notes and other documents relating to the design, assessment and operation of trunk roads, including motorways in the United Kingdom, and, with some amendments, the Republic of Ireland .They...
(DMRB)) for assessing transport projects and proposals.
In April 2011 the Coalition Government decided that the term NATA would no longer be used. However, the principles and key elements of the NATA framework remain in the Department for Transport
Department for Transport
In the United Kingdom, the Department for Transport is the government department responsible for the English transport network and a limited number of transport matters in Scotland, Wales and Northern Ireland which are not devolved...
's Webtag
Webtag
WebTAG refers to the UK Department for Transport's web-based multimodal guidance on appraising transport projects and proposals.WebTAG reflects the New Approach to Appraisal that was developed in 1998 and initially applied to decisions on trunk road schemes and a series of major multimodal studies....
Transport Analysis Guidance.
History
NATA was introduced by the then Department for Transport, Environment and the Regions as part of the 1998 Integrated Transport White Paper and first used in the 1998 review of trunk road schemes. Its development reflected the new Labour Government's aim of providing a more balanced approach to transport appraisals, in terms of both:- private transport versus public transport; and
- the economic impacts compared to environmental impacts.
Accompanying documents to that review list the ASTs for 68 trunk road schemes and provided initial guidance on how NATA was to be applied to transport projects.
A subsequent published study by academics at the Institute of Transport Studies, University of Leeds
University of Leeds
The University of Leeds is a British Redbrick university located in the city of Leeds, West Yorkshire, England...
found that the decisions made by Ministers in respect of the road schemes were statistically significant in terms of how they related to the information about the schemes included on the ASTs. This demonstrated that Ministers were taking account of the information provided on the ASTs in a consistent way.
On 30 October 2007, the DfT published a consultation document - The NATA Refresh: Reviewing the New Approach to Appraisal - alongside, and as part of, its new transport strategy document 'Towards a sustainable transport system: Supporting economic growth in a low carbon economy'. The aim of the NATA Refresh consultation document is to seek views on how NATA should be developed.
Aims
The methods for assessing the value for money of transport projects have been at the forefront of project appraisalProject appraisal
Project appraisal is a generic term that refers to the process of assessing, in a structured way, the case for proceeding with a project or proposal. In short, project appraisal is the effort of calculating a project's viability...
practice in the UK for many years. NATA was designed to build on that good practice by bringing together the mass of detailed appraisal information about the impacts of a transport proposal, some of which are expressed in monetary terms, some using quantitative measures or some just in qualitative terms. A key aspect of NATA is the use of standard worksheets to collate the large amount of cost-benefit analysis
Cost-benefit analysis
Cost–benefit analysis , sometimes called benefit–cost analysis , is a systematic process for calculating and comparing benefits and costs of a project for two purposes: to determine if it is a sound investment , to see how it compares with alternate projects...
and environmental impact assessment
Environmental impact assessment
An environmental impact assessment is an assessment of the possible positive or negative impact that a proposed project may have on the environment, together consisting of the natural, social and economic aspects....
data and then present it in a more concise, consistent and balanced way.
Within the NATA framework, the impacts of transport projects are categorised in terms of five high level criteria (economy, safety, environment, accessibility and integration), reflecting the Government’s objectives for transport. Each of these criteria is divided into a number of sub-criteria and it is against each of these sub-criteria that the impacts of a proposal are assessed and presented in a 1 page Appraisal Summary Table (AST).
The division of the five criteria is shown below:
- Economy (Public Accounts, Transport Economic Efficiency: Business Users & Transport Providers, Transport Economic Efficiency: Consumers, Reliability, Wider Economic Impacts)
- Safety (Accidents, Security)
- Environment (Noise, Local Air Quality, Greenhouse Gases, Landscape, Townscape, Heritage of Historic Resources, Biodiversity, Water Environment, Physical Fitness, Journey Ambience)
- Accessibility (Option values, Severance, Access to the Transport System)
- Integration (Transport Interchange, Land-Use Policy, Other Government Policies)
United Kingdom
The NATA framework is now a cornerstone of UK transport appraisal practice. It has been applied to other types of road proposals, including small Highways AgencyHighways Agency
The Highways Agency is an executive agency, part of the Department for Transport in England. It has responsibility for managing the core road network in England...
projects and local authority road schemes and to other modes of transport, including the major programme of Multi-Modal Studies, initiated by the Government, that were carried out between 1999 and 2003, Local Transport Plan
Local Transport Plan
Local transport plans, divided into full local transport plans and local implementation plans for transport are an important part of transport planning in England...
major public transport schemes, as well as rail proposals. In 2003, a web based set of Transport Analysis Guidance (commonly referred to as WebTAG
Webtag
WebTAG refers to the UK Department for Transport's web-based multimodal guidance on appraising transport projects and proposals.WebTAG reflects the New Approach to Appraisal that was developed in 1998 and initially applied to decisions on trunk road schemes and a series of major multimodal studies....
) based on NATA principles, was launched by the Department for Transport
Department for Transport
In the United Kingdom, the Department for Transport is the government department responsible for the English transport network and a limited number of transport matters in Scotland, Wales and Northern Ireland which are not devolved...
(DfT).
A further development of NATA has been its use of an approach that disaggregates impacts between all those who are affected by a proposal, rather than the traditional cost-benefit approach of simply assessing the net impacts on society. While the two approaches are equivalent at the aggregate level, the NATA approach allows a more detailed analysis to be made of those who gain and those who lose as a result of a proposal. However the NATA approach raises issues regarding the precise definition of the impacts that are included in the numerator and denominator of the Benefit-Cost Ratio
Benefit-cost ratio
A benefit-cost ratio is an indicator, used in the formal discipline of cost-benefit analysis, that attempts to summarize the overall value for money of a project or proposal. A BCR is the ratio of the benefits of a project or proposal, expressed in monetary terms, relative to its costs, also...
.
As well as setting out methods for appraising transport proposals, WebTAG contains values that should be used to assess different types of impacts, including the value of time
Value of time
In transport economics, the value of time is the opportunity cost of the time that a traveller spends on his/her journey. In essence, this makes it the amount that a traveller would be willing to pay in order to save time, or the amount they would accept as compensation for lost time.One of the...
and vehicle operating costs.
A UK Government Multi-Criteria Analysis (MCA) manual, originally produced by the former Department for Transport, Local Government and the Regions and now overseen by the Department for Communities and Local Government
Department for Communities and Local Government
The Department for Communities and Local Government is the UK Government department for communities and local government in England. It was established in May 2006 and is the successor to the Office of the Deputy Prime Minister, established in 2001...
, highlights NATA as an example of MCA being applied in practice to a major area of UK Government policy.
Scotland, Wales and Northern Ireland
For those transport matters that are the responsibilities of the Scottish ExecutiveScottish Executive
The Scottish Government is the executive arm of the devolved government of Scotland. It was established in 1999 as the Scottish Executive, from the extant Scottish Office, and the term Scottish Executive remains its legal name under the Scotland Act 1998...
, Welsh Assembly Government
Welsh Assembly Government
The Welsh Government is the devolved government of Wales. It is accountable to the National Assembly for Wales, the legislature which represents the interests of the people of Wales and makes laws for Wales...
and Northern Ireland Assembly
Northern Ireland Assembly
The Northern Ireland Assembly is the devolved legislature of Northern Ireland. It has power to legislate in a wide range of areas that are not explicitly reserved to the Parliament of the United Kingdom, and to appoint the Northern Ireland Executive...
, the NATA principles have been adopted by the relevant transport authorities in those countries.Transport Scotland
Transport Scotland
Transport Scotland was created on 1 January 2006 as the national transport agency of Scotland. It is an Executive Agency of the Scottish Government's Enterprise, Transport and Lifelong Learning Department and accountable to Scottish Ministers...
has issued its own transport appraisal guidance, 'Scot-TAG' (Scottish Transport Appraisal Guidance), which draws heavily on NATA. In Summer 2006 the Welsh Assembly Government consulted on the development of its NATA-based transport appraisal guidance, WelTAG, and published its guidance in June 2008.http://new.wales.gov.uk/topics/transport/publications/weltag?lang=en The appraisal procedure used by the Roads Service in Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
's Department for Regional Development
Department for Regional Development
The Department for Regional Development is a devolved Northern Ireland government department in the Northern Ireland Executive...
is based on the five NATA criteria.
World Bank
A transport project evaluation toolkit prepared in 2003 for the World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and a series of Economic Evaluation Notes prepared for Bank staff in 2005 drew heavily on many elements within the NATA framework.