Assessment of Socio-Economic Benefits from the Construction of Bypasses of Transport Infrastructure

Jasmina Ćetković, Biljana Ivanović, Radoje Vujadinović, Miloš Žarković, Marija Grujić

Abstract


The aim of the study is to analyse the feasibility of the second phase of the construction of the Rožaje (Montenegro) bypass project. The objectives of the construction of this bypass are to eliminate or reduce existing problems by redirecting transit flows to the bypass. Based on the observed economic costs of construction and the expected economic benefits from the project in a 20-year period, by applying Cost-Benefit Analysis (CBA), the indicators of the project economic feasibility were determined. As part of the socio-economic analysis of the project feasibility, the expected benefits for transport users (savings in travel time and savings in the vehicle exploitation costs), as well as external impacts (impacts on safety and impacts on the environment) were assessed. The analysis showed the dominant savings are in travel time and vehicle exploitation costs. The economic net present value (ENPV) of this project is positive and amounts to EUR 55 054 502, the economic internal rate of return (EIRR) is 26.88% (with a discount rate of 5%), while the benefit-cost ratio (B/CR) is 4.96. All scenarios developed within the Project Sensitivity Analysis have confirmed that this project has satisfactory economic justification.

Keywords:

benefits for transport users; bypass; Cost-Benefit Analysis; external impact; socio-economic benefits; transport infrastructure

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References


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DOI: 10.7250/bjrbe.2023-18.621

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