ALTERNATE METHODOLOGY FOR CONDUCTING ECONOMIC FEASIBILITY STUDIES OF NEW ROAD PROJECTS

This work established an alternate methodology to conduct economic feasibility studies of new road projects. The existing methodology is complex and involves extensive time and document production. Economic feasibility studies of 6 road projects were conducted using the existing and proposed methodologies. The study roads were presumed to be feeder/collector roads connecting rural areas with existing primary roads. The alternate methodology focused on weighted averages of production factors rather than on each resource component. Resource production and value added were calculated using both methodologies. Regression models were also developed for different production components. Statistical tests and analyses were carried out, with the alternate methodology producing results that were very close to the conventional one.