Road Projects Cost Benefit Analysis

Six projects from six countries were selected as the cases for detailed analysis in this study. They are from Argentina, Botswana, India, Kenya, Lao PDR and Paraguay, representing a wide range of geographical distribution. Also, the extent of the effect of economic downturn which these countries experienced ranges a wide variety. In an economic downturn, uncertainties increase with many inputs of road projects Cost Benefit Analysis (CBA), including fuel prices, levels of demand, investment costs and maintenance availability. Also, important parameters of project evaluation such as discount rate and value of time need to be more carefully scrutinized. Therefore, it is very important for the developing countries to have good understanding about the effects of the variability of these inputs/parameters on project viability and the ranking of road investments. It is a role of the developing agencies to conduct a systematic analysis of these effects and disseminate the findings and knowledge obtained. The objective of the study is to obtain insights regarding the effects of varying inputs and parameters on the viability of road projects through case studies using Highway Development and Management Model (HDM-4), thereby to facilitate the formulation and implementation of road projects that increase the welfare of the society under the environment of increased uncertainty in an economic downturn. The results of the study will be summarized in a transport note as a discrete knowledge product and disseminated among various stakeholders including developing agencies staff, government officials and donor communities. To assess the effects of increased uncertainty with inputs of cost benefit analysis on the economic viability of road projects, this study first investigated the range of variability of the inputs for the six selected projects/countries. It was found that the variability ranges differ by country reflecting the degree of decrease in transport demand and relative change in factor prices due to economic downturn.

Bibliographic Details

Main Author:	Tsunokawa, Koji
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2010
Subjects:	ABBREVIATIONS, ACCIDENT, ACCIDENT COSTS, ANALYSIS PERIOD, ASPHALT, ASPHALT PAVEMENT, AVERAGE SPEEDS, AVERAGE TRAFFIC GROWTH, BYPASSES, CARGO, CARRIAGEWAY, CIVIL WORKS, CLASSIFICATION, CONCRETE, CONCRETE PAVEMENT, CONCRETE PAVEMENTS, CONTENTS, CORRIDOR, CORRIDOR TRANSPORT, CORRIDOR TRANSPORT IMPROVEMENT, CORRIDOR TRANSPORT IMPROVEMENT PROJECT, COST BENEFIT ANALYSIS, CRACKING, DESCRIPTION, DIESEL, DOCUMENTS, FLEXIBLE PAVEMENTS, FOG, FRAMEWORK, FUEL, FUEL PRICE, FUEL PRICES, GENERATED TRAFFIC, GOAL, GRADING, GRAVEL, GRAVEL RESURFACING, HEADING, HIGHWAY, HIGHWAY IMPROVEMENT, HIGHWAY IMPROVEMENT PROJECT, INDICES, INTERNAL RATE OF RETURN, INTERNATIONAL ROUGHNESS INDEX, LANE ROAD, LANES, LENGTH OF ROAD, LOADING, MAINTENANCE LABOR, NET PRESENT VALUE, NORMAL TRAFFIC, OVERLAY, PASSENGER, PASSENGER WORKING TIME, PASSENGERS, PAVED ROADS, PAVEMENT CONDITION, PAVEMENT CONSTRUCTION, PAVEMENT WIDTH, PERIODIC MAINTENANCE, POTHOLES, RANGE, REDUCTION IN TRAFFIC, REPAIR, ROAD, ROAD CONDITIONS, ROAD DETERIORATION, ROAD INFRASTRUCTURE, ROAD INVESTMENT, ROAD INVESTMENTS, ROAD MAINTENANCE, ROAD MANAGEMENT, ROAD NETWORK, ROAD PROJECTS, ROAD REHABILITATION, ROAD SECTOR, ROAD USER, ROAD USER COSTS, ROADS, ROADWAY, ROUGHNESS, ROUTINE MAINTENANCE, SIGNS, SPEED, STATE HIGHWAY, STATE HIGHWAY IMPROVEMENT, STRENGTH, TRAFFIC, TRAFFIC DEMAND, TRAFFIC GROWTH, TRAFFIC REDUCTION, TRAFFIC VOLUME, TRAFFIC VOLUMES, TRANSPORT, TRANSPORT IMPROVEMENT, TRANSPORT RESEARCH, TRANSPORT SECTOR, TRAVEL TIME, TRUE, UNPAVED ROADS, VALUE OF TIME, VEHICLE, VEHICLE FLEET, VEHICLE OPERATING, VEHICLE OPERATING COST, VEHICLE OPERATION, VEHICLE PRICE, VEHICLE SPEEDS, VEHICLE TYPES, VEHICLES, WORKING VALUE,
Online Access:	http://documents.worldbank.org/curated/en/259161468327409408/Road-projects-cost-benefit-analysis-scenario-analysis-of-the-effect-of-varying-inputs https://hdl.handle.net/10986/27814
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