6.33 Infrastructure interventions should be appraised and valued in the same way as all other interventions. Infrastructure is a broad term relating to the assets, networks and systems that support the operation of a modern society and economy. In the UK, the term economic infrastructure refers to businesses and their assets that are concerned with transportation, water and sewage, waste management, energy, communications, and flood and coastal erosion. Economic infrastructure has particular characteristics that need to be recognised and taken into account.
6.34 Economic infrastructure can be geographically extensive and involve significant investment in physical assets. Many of these assets have grown organically over time and are often highly interdependent. Because of their size, and in certain cases complexity, some decisions may have effects on future flexibility of an organisation or industry affected and other infrastructure service providers. Productivity benefits should be considered as part of appraisal, including agglomeration effects or changes in the structure of the economy that may result from infrastructure investment.
6.35 Infrastructure, long term planning and high interdependence levels need to be taken into account at the long-listing stage and when selecting the optimum short-list (Chapter 4). It is vital that this is supported by sufficient good quality research and evidence, for example on previous similar interventions.