Abstract

Economic and population growth in the north coast of east java especially Tuban, Lamongan
and Gresik region causing vehicle mobilization in the area increased. North coast of east java is a
region with many growing small up to big scale industries. Over time, volume of vehicle keep
increasing due economy activity as well as sosial community activity in the area. Capacity of road
that cannot accomodate traffic volume often to make congestion in national street, so government
planning to build Tuban – Gresik Highway to reduce the congestion. The purpose of this final
assignment is to know advisability of this Tuban – Gresik highway construction project from
economy, financial, and engineering aspect.

Economy and finacial adivisability analysis performed with calculating saturation degree of
existing road before and after project, travel cost saving, highway cost, Benefit Cost Ratio (BCR), Net
Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and sensitivity analysis because
of highway cost reduction. Engineering advisability analysis reviewed only horizontal alinyemen
control.

The study result of adivisability from economy aspect based on GRDP was obtained BCRe =
13.78; NPVe = Rp.1.171.014.928.443.130; and EIRR = 21.01%. While adivisability from financial
aspect based on 50% highway cost profit obtained BCRf = 2,66; NPVf = Rp. 152.433.000.846.062;
FIRR = 11,3%; and Payback Period during 15 years. Sensitivity analysis result is known that
construction of Tuban – gresik highway will remain feasible if highway cost discounted up to 30%
that is obatained BCRf = 1,87; NPVf = Rp. 80.165.999.197.959; FIRR = 8,31%; and Payback period
during 18 years. So the construction of Tuban – Grasik highway can be said to be feasible from
economy and finacial aspect. Engineering adivisability study in the form id horizontal alynemen
control that fulfill the requirement.

Keywords : Adivisability Study, Tuban – Gresil Highway, Economy Analysis, Financial Analyasis,
Engineering Analysis.