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Road Section Prioritization Program Analysis

This program aims to prioritize road sections annually within budget limits by analyzing maintenance options, budget periods, and maximizing NPV or road network condition. Methods include life cycle and budget period analysis.

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Road Section Prioritization Program Analysis

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  1. HDM-4Introduction to Program Analysis

  2. Objective • To Prioritize candidate road sections in each year within the budget constraints.

  3. Procedure • Select road sections • Determine maintenance / improvement options • Specify the budget limits and budget periods • Optimize using selected objective • Produce the final list of projects for the budget period

  4. Multi-year Program • Method: • Life cycle analysis • Budget period analysis • Objective function: • Maximize NPV • Maximize road network condition

  5. Budget allocation • Routine maintenance costs are based on road lengths. • Recurrent costs are based on pavement surface condition. • Periodic maintenance are based on economic indicators. • Improvement needs are based also on economic indicators.

  6. Budgeting Procedure • When sufficient budget is available: • Select all independent projects with NPV>0 • Select mutually exclusive project alternative with the highest NPV. • When there is budget constraints: • Select the independent project using the highest NPV/Cost ratio • Select mutually exclusive projects using the incremental NPV/Cost

  7. Prioritization Project Cost NPV NPV/Cost Rank A 150,000 35,000 0.233 2 B 150,000 45,000 0.300 1 C 200,000 40,000 0.200 3 D 250,000 37,000 0.150 6 E 500,000 70,000 0.140 7 F 500,000 77,000 0.154 5 G 500,000 78,000 0.156 4

  8. Incremental Analysis Project Cost NPV NPV/Cost Rank A 20,000 4,869 0.2435 2 B 30,000 240 0.0080 8 C 20,000 5,184 0.2592 1 D 20,000 210 0.0105 7 E 40,000 6,401 0.1600 4 F 35,000 4,497 0.1285 5 G 20,000 1,200 0.0600 6 H1 80,000 15,000 0.1875 3 H2 100,000 16,829 0.1683

  9. Definition • Program analysis is concerned with the preparation of single or multi-year work program for the road network by maximizing the economic return (INPV/Cost) subject to budgetary constraints.

  10. Thank You

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