The general aim of the Financial Cost-Benefit Analysis (F-CBA) is to evaluate how and to what extent the incremental net financial benefit flows resulting from the project investment meet the investment costs and operating costs for the given period. The F-CBA evaluates the efficiency of the investment, comparing effective financial costs and benefits from the perspective of the investor.

In the case of LAPs, they can be evaluated from the perspective of central government, which involves focusing on the revenue and savings that the implementation of the LAP can generate through the greater efficiency of LAIs and/or the increase in revenue from payment for services.

The F-CBA of an LAP is a useful tool for evaluating how central government, as an investor in LAPs, can recover monetary resources invested in strengthening LAIs, which can be important for analysing the advantages of the LAP in relation to alternative uses. Furthermore, structured financial models for the F-CBA can serve as a basis for the construction of economic flow models for the economic cost-benefit analysis (E-CBA) discussed in this guide.

The F-CBA can be carried out for all the LAIs together and will consider all the incremental costs and revenue corresponding to the modernization of the cadastre, the register and the institute in charge of tenure regularization, or for each one separately.