The policies and decision criteria for investments and approval of infrastructure sectors and in productive sectors are normally different. Governments and financial institutions continue to use traditional economic and financial analysis for irrigation projects as rate of return, discount rates, the exclusion or inclusion of indirect costs for primary decision criteria. Since the 1970s Cost Benefit Analysis (CBA) has become the dominant decision support system for project appraisal and the economic internal rate of return (or net present value) is the decision criteria most widely applied by government agencies today. This perspective, however, greatly exaggerates the grip of CBA on decisionmaking regarding approval of project. There are great amount of disparities among regions and countries, leading to differences in crucial aspects of project appraisal. During present study, efforts have been made for review of the criteria for appraisal of irrigation project.