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Evaluation of Low Volume Roads. Rodrigo Archondo-Callao Senior Highway Engineer, ETWTR January 10, 2008. The World Bank. World Bank Technical Paper No. 496. Road Transport. “Tracks”. “Roads”. “Highways”. Functional Classification. Primary Road Network. Roads with 2 or more lanes

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evaluation of low volume roads

Evaluation of Low Volume Roads

Rodrigo Archondo-CallaoSenior Highway Engineer, ETWTRJanuary 10, 2008

The World Bank

road transport
Road Transport

“Tracks”

“Roads”

“Highways”

primary road network
Primary Road Network
  • Roads with 2 or more lanes
  • Paved roads
  • Traffic greater than 500 AADT
  • Long distance traffic
  • Essentially serves an economic function
  • Focus is the reduction of transport costs

Cost Benefit Analysis (CBA) using the HDM-4 model

secondary road network
Secondary Road Network
  • Road with 1.5 to 2 lanes
  • Unpaved roads or paved roads
  • Traffic less than 500 AADT
  • Medium distance traffic
  • Economic and social function
  • Focus is the reduction of total transport costs, measuring also the social impact

Cost Benefit Analysis (CBA) using RED model or HDM-4 model

tertiary road network
Tertiary Road Network
  • Roads with 1 to 2 lanes
  • Unpaved roads and tracks
  • Traffic lower than 50 AADT difficult to measure
  • Short distance traffic
  • Essentially serves a social function
  • Focus is the social impact, measuring the efficiency of the investments and/or a multi-criteria index

Cost Efficiency Analysis (CEA) or Multi- Criteria Analysis (MCA)

analytical instruments
Analytical Instruments
  • Cost Benefit Analysis (CBA)
    • Net Present Value
  • Cost Efficiency Analysis (CEA)
    • Total Beneficiary Population per Investment
  • Multi Criteria Analysis (MCA)
    • Priority Index
cost benefit analysis cba
Cost Benefit Analysis (CBA)

Total Society Costs

Road User Costs

Government Costs

Improve Standard

CBA

comparison of alternatives with cba
Comparison of Alternatives with CBA
  • To compare project alternatives, the Net Present Value is used to select the optimal alternative (the one with higher NPV) and to eliminate project that are not economically feasible (NPV<0)
  • The Internal Rate of Return (IRR) or the Benefit/Cost and NPV/Investment ratios are not recommended to compare project alternatives

Alternatives NPV 0.03.76.75.5

Project

Optimal Alternative:Higher NPV

CBA

comparison of projects with cba
Comparison of Projects with CBA
  • To compare the economic priority of projects, it is recommend the use of the indicator NPV per Investment or a budget constraint optimization algorithm, such as EBM-32 contained on the HDM-4 and RED models.

PRIORITY

Selected Alternative OverlayReseal

Overlay

NPV / Investment 8.45.2

2.1

Projects

CBA

projects eligibility with cba
Projects Eligibility with CBA
  • To define if a project is eligible, it is recommended to utilize the NPV (NPV > 0) or the IRR (IRR > x%), at a given x% discount rate.

NPV IRR 42.2 25%25.4 17%

-5.5 9%

Projects

Eligible

Not Eligible

CBA

cost efficiency analysis cea
Cost Efficiency Analysis (CEA)
  • It compares the cost of interventions with its predicted impacts and it is used in the situations where the benefits cannot be measured in monetary terms, or where the measurement is difficult.
  • It includes provisions that (a) the objectives of the intervention are indicated and are clearly part of a ampler program of objectives (such as reduction of the poverty); and (b) the intervention represents the smaller cost alternative of obtaining the indicated objectives.
  • It produces efficiency indicators such as Total Beneficiary Population per Investment.

CEA

comparison of alternatives with cea
Comparison of Alternatives with CEA
  • To compare project alternatives, the investment cost is used to select the optimal alternative
  • The selected alternative will be the one with the lowest investment cost that will provide the road all-weather access

Alternatives Investment 2.03.71.75.5

Project

Optimal Alternative:Lower Investment

CEA

comparison of projects with cea
Comparison of Projects with CEA
  • To compare the economic priority of projects, it is recommended the use of the efficiency indicator Total Beneficiary Population per Investment

Alternative withLowest Cost ResurfaceGrading

Resurface

Total BeneficiaryPopulation / Investment 2014

5

PRIORITY

Projects

CEA

projects eligibility with cea
Projects Eligibility with CEA
  • To define if a project is eligible it is recommended to define a minimum acceptable efficiency indicator Total Beneficiary Population per Investment

Total Beneficiary Population per Investment 2014

5

Projects

Eligible

Not Eligible

CEA

cea indicators
CEA Indicators
  • Investment Cost per Total Beneficiary Population
      • 100 US$ per person
  • Total Beneficiary Population per Investment Cost
      • 0.01 persons per US$
  • Total Beneficiary Population per Investment Cost in thousands of dollars
      • 10 persons per 1,000 US$

CEA

multi criteria analysis mca
Multi Criteria Analysis (MCA)
  • It adopts criteria such as traffic, proximity to educative, health, and economic centers, which receive weights (points) concerning their perceived importance.
  • The added number of the points that each section receives is computed simply adding the points assigned for each criterion, or with the use of a more complex formula.

MCA

multi criteria analysis example
Multi Criteria Analysis Example
  • Inhabitants benefited per km
  • Percentage of extreme poverty
  • Productive area
  • Average traffic
  • Functional classification
  • Location in the optimal network
  • Number of health centers
  • Number of schools
  • Existence of public transport
  • Environmental feasibility

MCA

multi criteria analysis example21
Multi Criteria Analysis Example

MCA

Factor = Value / Maximum Value