INSTITUTE OF TECHNOLOGY

DEPARTMENT OF CONSTRUCTION TECHNOLOGY AND MANAGEMENT

ENGINEERING ECONOMICS AND FINANCE CASE STUDY PROJECT

COST AND BENEFIT ANALYSIS OF RIGID AND FLEXIBLE PAVEMENT: A CASE

STUDY AT DIRE DAWA - LEGA ODA ROAD PROJECT

NAME: EDRIS ABDELLA

SUBMITTED TO: Dr. WORKU K. (PhD)

FEBRUARY 16, 2022, DIRE DAWA, ETHIOPIA

INDUSTRIAL AND WASTE WATER ENGINEERING Page i

 EXECUTIVE SUMMARY
Road construction projects have been implemented all over Ethiopia as part of the national development
plan. Since the cost comprises of a large portion of government investment, a careful evaluation of the
alternatives is utmost importance to make the right choice for a particular project. In the history of
Ethiopia road development program, almost all of the road pavements are flexible, and it demands high
foreign currency for asphalt material importing from abroad. In addition, flexible pavement needs to be
maintained and rehabilitated within a few years after its initial construction. In view of the emerging
cement factories and the availability of cement in Ethiopia, it is practical to consider rigid pavement as
one of the alternatives. The study was conducted with the main objective of identifying the cost and
benefit of rigid and flexible pavements at dire dawa to lega oda road project. The case study work had
been focused on the specific objectives to determine and compare the life cycle costs of rigid and
flexible pavements and to investigate all other qualitative merits of rigid and flexible pavement. To
achieve these objectives, a review of related literatures, design and specifications, observations and
investigations of the actual pavement construction projects, evaluation of life cycle costs, future value of
money and present worth calculation were undertaken with an analysis period of 40 years. While the
data considered was gathered through investigation at the actual rigid and flexible pavement projects,
examination of specifications, drawings and pavement design, Ethiopian Road Authority manuals,
rehabilitation and maintenance strategy. In this regard, the cost parameters investigated are initial
construction cost, maintenance cost, rehabilitation cost, user’s cost and salvage value, in addition to
other qualitative and quantitative data. Based on the results of the case study project, it revealed that the
initial cost of rigid pavement was almost twice of the flexible pavement, but in the long run, the cost of
flexible pavement per kilometer was found out to have 7.9 Million ETB more than the rigid pavement
because of the incurring costs of maintenance through its design life. Therefore, it is suggested that
Portland Cement Concrete Pavement (PCCP) shall be used in pavement construction to cater local
material requirements.

Key words: Cost and Benefit Analysis, Initial Construction, Flexible and Rigid Pavement, Life Cycle
Cost, Roads, Maintenance and Rehabilitation, Pavement Alternative

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ABBREVIATIONS/ACRONYMS

ERA Ethiopian Roads Authority

PCCP Portland Cement Concrete Pavement

RSDP Road Sector Development program

LLP Long-life Pavements

LCCA Life cycle cost analysis

NPW Net Present Worth

KM Kilometer

IC Initial Cost

MC Maintenance Cost

RC Rehabilitation Cost

UC User Cost

SV Salvage Value

Dr Discount rate

Fc Future cost

PV Present Value

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 LIST OF FIGURES

Figure 1 Map of the Project Area and satellite image...............................................................................2

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 LIST OF TABLE

Table 1 Summary of Initial Cost for Flexible and Rigid Pavement...........................................................6

Table 2 Agency Cost of Flexible pavement and Rigid pavement respectively...........................................7

Table 3 Present Worth (PW) of Pavements (ETB/Km)..............................................................................8

Table 4 Time Required for the Execution of 1km Pavements....................................................................9

Table 5 Materials required for the Execution of 1kmfor Flexible and Rigid Pavement respectively........9

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TABLE OF CONTENT
EXECUTIVE SUMMARY..........................................................................................................................i

LIST OF FIGURES....................................................................................................................................iii

LIST OF TABLE........................................................................................................................................iv

TABLE OF CONTENT............................................................................................................................v

1 INTRODUCTION................................................................................................................................1

1.1 Background...................................................................................................................................1

1.1.1 Location of Study Area...................................................................................................................1

1.2 Statement of the Problem...................................................................................................................2

1.3 General Objective.........................................................................................................................3

1.4 Specific Objective.........................................................................................................................3

1.5 Significance(Outcome).................................................................................................................3

2 METHODOLOGY...............................................................................................................................4

2.1 Research design.............................................................................................................................4

2.2 Data source and collection............................................................................................................5

2.3 Data processing and NPW analysis..............................................................................................5

3 ANALYSIS, RESULTS AND DISCUSION.......................................................................................6

3.1 Analysis Period.............................................................................................................................6

3.2 Determination of Agency Costs....................................................................................................6

3.3 Maintenance Cost of Pavements...................................................................................................7

3.4 Salvage Value...............................................................................................................................7

3.5 Present worth Calculations............................................................................................................8

3.6 Time and Material requirement.....................................................................................................9

4 CONCLUSION AND RECOMMENDATION.................................................................................10

4.1 Conclusion..................................................................................................................................10

4.2 Recommendation........................................................................................................................10

REFERENCE............................................................................................................................................11

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 1 INTRODUCTION
In many countries with developed road networks, new road construction typically accounts of more or
less 50% of the road budget. While the remainder of national road budgets is spent on maintenance and
rehabilitation of existing roads. Long-life Pavements (LLP) project is approved if the costs of future
maintenance, rehabilitation and the resulting road user delay costs are economically justified [1]. There
has been historically difference of opinion as to whether Hot Mix Asphalt (flexible) pavements are more
economical or less economical over time, than Portland Cement Concrete (rigid) pavements. Even
experienced state highway agencies and highway engineers disagree on the subject [2]. Aware of the
road infrastructure development as the backbone and the blood artery for all economic, social progress,
due emphasis has been given to the implementation of the Road Sector Development program (RSDP)
since 1997. To execute such a very crucial project, large amount of budget will be allocated for the
surfacing of pavements. Hence, it is important to go for careful evaluation of the alternatives in order to
make the right choice before implementation of such projects.

In Ethiopia very few and short kilometer lengths of road projects are constructed with rigid pavement
were in Oromia (Chancho-Derba-Bocho and Beseka road), Addis Ababa (Rehabilitation projects) and
Tigray (Michew –Adigudem), of which Beseka and Addis Ababa rehabilitation projects were completed
[3], if it is accepted and started this dire dawa to lega oda will be also. Even though there are, newly
emerging cement and reinforcement production factories in Ethiopia that can avoid foreign currency to
buy materials for flexible pavement, only few and small-scale concrete pavement projects have been
undertaken in the country. Among these projects, Beseka Road, a one-kilometer long that was
considered the first cement concrete pavement in the history of the Ethiopian road construction project.

Over the past 17 years, 41.2% of the total Ethiopian Road, Sector Development Program (RSDP)
expenditures was allocated for the rehabilitation and upgrading roads, 28.8% for construction of link
roads, 5.7% for maintenance of Federal roads, 8% of Regional road and 11.7% of Woreda roads, 2.8%
of Institutional support projects, and other activities at the Federal level [4].

1.1 Background

1.1.1 Location of Study Area

This case study report paper describes and presents the overall report part of the project that conducted
from ERA and dire dawa administration. It is concerned about Laga Oda road project the project site is

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located around 38km far from dire dawa city administration and 515km far away from capital city of
Ethiopia, Addis Ababa. The road is an existing gravel road which starts from dire dawa to harar road and
terminates at national cement factory area with an additional 2.5 km drive road from Dire dawa passing
through mercury village, kenchera, hulul, wahel village (Wahel cluster is located at about 18km
southwest of the City Administration which will increasing to small town. Due to rapid economic
growth of the country, there is a high demand for cement and the existing on the gravel road from the
Dire Dawa to Wahel, to Laga Oda road is a potential corridor for cement production, agricultural
production. There are existing cement factories which are under operation. Among this, the national
cement is the biggest cement factory in Ethiopia, which will produce 4500 Tons of cement per day (from
company profile). In order to satisfy the demand of the emerging economy for huge transport of cement
and other productions, it is therefore required to upgrade the existing road to a higher standard.

Figure 1 Map of the Project Area and satellite image

1.2 Statement of the Problem

Roads are the arteries through which the economy pulses. By linking producers to markets, workers to
jobs, students to school, and the sick to hospitals, roads are vital to any development agenda (World
Bank, 2015). Heavy rains in the upcountry especially here in dire dawa districts in mercury village, Lega
Oda gunufeta, mirga, wahel, cut off roads and washed away bridges. All this required emergency
interventions. Furthermore, the urban and city dwellers whose food basket is in the rural villages do not
receive fresh foodstuffs due to delays in transportation. This retards the rate of economic growth and
may affect negatively on the achievement of the national vision.

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1.3 General Objective
 To implement a ten year Road Sector Development Program (RSDP) with the objective of
improving the efficiency and capacity of the road transport system to support its Agricultural
Development Led Industrialization Strategy and social economic development in general.

1.4 Specific Objective

 To improve accessibility and mobility of the rural population to markets, social and economic
services/facilities.
 To promote market integration between rural and urban areas in support of the poverty reduction
program.
 to determine and compare the life cycle costs of rigid and flexible pavements and to investigate
all other qualitative merits of rigid and flexible pavement.
 To increase sustainable tourism development to the areas.

1.5 Significance(Outcome)
 The proportion of farms in the four small town weredas that are more than half a day’s walk
from nearest all-weather/earth, mountain, gravel road would be reduced.
 There is high potential mining in laga Oda cave, and construction of these road create a great
opportunity for mining industry to transport it easily.
 Increasing trends of sustainable rock art tourism development
 Savings in journey time and this create a great opportunity for dire dawa people to get high fresh
agricultural goods.
 The project is expected to contribute to improved access, reduction in transport costs, increased
agricultural production; give rise to other socio-economic benefits, and have a significant impact
on poverty reduction in the adminstration of Ethiopia.

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 2 METHODOLOGY

2.1 Research design

This project is a case study type that was conducted on the selected road projects. The methods used in
order to achieve the objective are:

 Literature review
 A case study on dire dawa to lega Oda road project through site investigation, field observation,
data collection and review of drawing and design documents
 Evaluating initial construction cost for one kilometer of both flexible and rigid pavement,
 Estimating of future maintenance, rehabilitation, fuel cost and time saving costs of secondary
data,
 Life cycle cost analysis (LCCA) for both pavements by present worth method for 40-year
analysis period.

2.1.1 Steps in determining Life Cycle Cost

i. Determine the initial construction cost

 For asphalt pavement and concrete pavement, (both pavement segments have been undertaken
for the study).
 Quantity Take-off prepared, Cost break down, and Initial cost was estimated for 1km 2 lane road
for both pavement types as per the typical road section of the project (dire dawa to Laga Oda)
ii. Determining schedule (frequency) of activities
 Analysis period
 Maintenance schedule and frequency in years
 Rehabilitation schedule and frequency in years
iii. Estimate agency costs and User costs
 Exclude elements that are same for all alternatives
 Agency costs – construction costs
 User costs –vehicle time savings and fuel costs
iv. Compute life cycle costs (Present Worth) Present worth of Costs
 Computations using formula( future value of money)

 Discounts all future costs and benefits to the present value

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 2.2 Data source and collection
During data collection, data were collected from the following sources

 Road maintenance & rehabilitation data from Ethiopian Road Authority (ERA), Ethiopian Road
Construction Corporation (ERCC) and ERA manuals.
 Field inspection of another and for the case road project design and specifications.
 Informal Interviews to road project consultants and contractors(by calling phone)
 Primary and secondary data were also collected from literatures, pre road feasibility studies,
internets and websites
 Discount Rate (%) 10%
 Inflation Rate (percentage) (35%), January 2022 data(Source Ethiopian Inflation Statics Agency)
 Interest rate (percentage) (5%),Commercial Bank Of Ethiopia
 Number of Alternatives (2),Concrete(JRCP) and Asphalt (HMA)

2.3 Data processing and NPW analysis

After cost determination of pavement initial, maintenance, rehabilitation, salvage value and users’ costs
for one kilometer, the present worth of rigid and flexible pavements is calculated.

The Net Present Worth formula, which was used, is shown below:

[ ][ ] [ ][ ] [∑ ][ ] [ ]
N N N
1
NPW =Ic+ ∑ Mc n
+ ∑ Rc 1 n + Pc
1
n
−Sv
1
n
n ( 1+dr ) n ( 1+ dr ) n ( 1+ dr ) ( 1+dr )

Where: Ic = initial construction cost, Mc =maintenance cost, Rc=Rehabilitation cost

Pc = User cost (professional and overhead cost, TS), Sv = salvage value, n = number of years.

N= analysis period in years (40), Dr = discount rate (10%);

Since all the costs other than initial construction will occur in the future analysis years, future value of
money should be determined by considering the inflation rate.

n
Fc=PV ( 1+if )

Where: Fc=Future cost at time of n years, PV= Present Value of Money in Birr, if= inflation adjusted
interest rate.

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 3 ANALYSIS, RESULTS AND DISCUSION

3.1 Analysis Period

The Life Cycle Cost Analysis (LCCA) analysis period should have to be sufficiently long to reflect
long-term cost differences associated with reasonable design strategies. Generally, the analysis period
should always be longer than the pavement design period, except in the case of extremely long-lived
pavements. As a rule of thumb, the analysis period should be long enough to incorporate at least one
rehabilitation activity. The FHWA’s September 1996 Final LCCA Policy statement recommends an
analysis period of at least 35 years for all pavement projects, including new or total reconstruction
projects as well as rehabilitation, restoration, and resurfacing projects [5].

As per the above recommendation period of 40 years, it was considered for the analysis to include one
rehabilitation time for the rigid pavement (JRCPCCP). The design periods, 40 years and 15 years for the
respective pavements were taken from the design documents of dire dawa -Lega Oda road project and
other projects.

3.2 Determination of Agency Costs

Initial construction Cost of pavements

The cost was calculated after determining the quantity and cost breakdown for 1km and 7meter road
width based on the typical road section of both pavement types particularly to dire dawa - Lega Oda
Road project.

Table 1 Summary of Initial Cost for Flexible and Rigid Pavement

No Description for Flexible Total Cost (ETB) No Description of Rigid pavement Total Cost (ETB)

1 Sub base, Road Base 959,630.00 1 Sub Base materials 842,590.00

2 Bituminous Surfacing 5,342,008.47 2 Concrete Pavement 10,066,914.20
Cost per km 6,301,638.47 3 Texturing and Curing 510,400.00
4 Joints 35,165.52
5 Reinforcement Bars 3,332,671.15
6 Separation Membrane 350,787.50
Cost per km 15,138,607.72

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 3.3 Maintenance Cost of Pavements
3.3.1 Routine Maintenance of Flexible

Flexible Pavement Routine Maintenance Schedule must be according to ERA code. The Periodic
Maintenance is to be conducted once a year before the rain comes as per the experience of the Ethiopian
Road Construction Corporation (ERCC) and Ethiopian Road Authority (ERA)

Rehabilitation of Flexible Pavement Considering two (2) times rehabilitation of the flexible pavement in
40 years of the analysis period, the cost was calculated for full replacement asphalt bitumen after
scarifying the pavement [6] Since routine Maintenance was scheduled two times and periodic once a
year, Hot Mix Asphalt (HMA) Overlay is enough and feasible without scarifying the layers below the
base course. For one (1) kilometer road stretch, rehabilitation activity is scheduled in table 3.5. On the
other hand, the total cost of rehabilitation for 15 and 30 years would become 2,558,500.84 ETB per
kilometer of the road. This cost is about 35% of the initial construction cost in the respective year.

3.4 Salvage Value

CC∗ERL
SalvageValue= Where, LC = Last construction or rehabilitation project costs
TEL

ERL = Expected remaining life of the last construction or rehabilitation project

TEL = Total expected life of the last construction or rehabilitation project
Table 2 Agency Cost of Flexible pavement and Rigid pavement respectively

No Description for Flexible
1 Construction Cost
2 Routine Maintenance Cost
3 Periodic Maintenance Cost
4 Rehabilitation Cost
5 Salvage Value
Cost (ETB) Remarks Description for Rigid Cost in ETB
6,301,638.47 Initial construction 13,398,607.72
673,176.26 every 2 year Routine Maintenance 300,000.00
681,856.38 three year Periodic
cost Maintenance 119,000.00
2,558,500.84 At 15th & 30th Rehabilitation
cost cost 1,191,000.00
1,705,667.23 After
yr. 40th years Salvage value 794,000.00

3.4.1 Maintenance and Rehabilitation of Rigid Pavement

The major routine maintenance activities were scheduled to be conducted at every 8 years and periodic
activities at 12 years. At 40 years after construction, rehabilitation has to be scheduled for the particular
project has to be done as per standard of ERA code.

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 3.5 Present worth Calculations
Table 3 Present Worth (PW) of Pavements (ETB/Km)

Description Rigid(ETB) Flexible(ETB) Difference(ETB)

Initial Construction Cost (ETB) 13,398,607.72 6,159,851.60 7,238,756.12
Routine Maintenance Cost (ETB) 262,688.40 4,751,072.46 4,488,384.06
Periodic Maintenance Cost (ETB) 56,849.86 2,095,019.25 2,038,169.39
Rehabilitation Cost (ETB) 30,505.96 806,517.58 776,011.62
Salvage Value -20,337.31 -43,688.51 -23,351.20
Time Savings( benefit) -8,826,941.34 -276,903.81 -8,550,037.53
Cost for professional Service 803,916.4632 369,591.096 4343,325.367
10% over head(additional cost) 1339860.772 615985.16 723875.612
Total, Cost in 40 Years (ETB) 7,045,150.53 14,477,444.83 7,432,294.30

[ ][ ][ ][ ][ ][
40 40 40
1 1 1
NPWfor rigid=13,398,607.72+ ∑ 319538.26 40
+ ∑ 30505.96 40
+ ∑ 803916.4632
1 ( 1+0.1 ) 1 ( 1+0.1 ) 1 ( 1+ 0.

N=40

[ ][ ][ ][ ][ ][
N N N
1 1 1
NPWflexible=6159851.60+ ∑ 6846091.71 40
+ ∑ 806517.58 40
+ ∑ 369591.096 4
n ( 1+0.1 ) n ( 1+0.1 ) n ( 1+0.1 )

In financial theory, if there is a choice between two mutually exclusive alternatives, the one yielding the
higher NPV should be selected(Dr. Worku k. lecture material) so we have select the rigid pavement that
have higher net present worth.

3.6 Time and Material requirement

6.8.1 Time requirement

To execute one (1) kilometer pavement stretch, the major time required for critical activities was
determined based on the performance output of Standard Crew and the actual output for Dire dawa –
Lega Oda road project.

Table 4 Time Required for the Execution of 1km Pavements

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Type Unit Quantity of Required Calendar
work day
Flexibl Dense Bitumen Macadam Cu.M 1,015 3 345m3/day
Asphalt surfacing Cu.M 350 2 173m3/day
e
Total calendar days for Flexible 5
Placing of Rebar Kg 6,677.44 7 1179kg /day
Casting of C-35 Concrete Cu.M 2,400 21 119m3/day
Curing of concrete(14min curing days)SQ.M 7,000 14 700m2/day
Total calendar days 42

1.5.2 Material requirement

To execute one (1) kilometer pavement stretch, major material required for critical activities was
determined based on the performance output of standard crew and actual output for DD to Lega Oda
road project. The aggregate requirement for flexible pavement is more than twice that of rigid pavement.
In addition, it requires more material for sub base and base course than rigid pavement.

Table 5 Materials required for the Execution of 1kmfor Flexible and Rigid Pavement respectively
no Description for Flexible Unit Qty Remark
number Description Rigid Unit Qty Remark
1 Bitumen 80/100 (for Asphalt and Kg 175,490 156kg/m3
1 Portland Cement Ton 9,596 4qnt/m3
Macadam)
2 Aggregate(gravel) for Asphalt Cu.M 805 2.3/m3 Aggregate (gravel) Cu.M
2 360 0.15/m3
3 Aggregate for Base course Cu.M 1,750 3 River sand Cu.M 960 0.40/m3
4 Sub base Material Cu.M 1,400 4 Sub base Material Cu.M 3,045

4 CONCLUSION AND RECOMMENDATION

4.1 Conclusion
Based on the results of the case study, it was found out that the rigid pavement has longer service life
(more than twice) than the flexible pavement. For one (1km) kilometer road length, the life cycle cost of
the rigid pavement is lower by a value of 7.9 Million ETB than the flexible pavement in forty (40) year
analysis period. A routine and periodic maintenance cost for the period of 40 years are 1.1 times greater
than the initial construction cost of the same one-kilometer stretch for flexible pavement and requires 7.3
million Birr higher for maintenance and rehabilitation as compared to rigid pavement. In addition, it
showed that the rigid pavement has lower maintenance and rehabilitation cost when compared with the
flexible pavement. On the other hand, the rigid pavement, which is wholly, constructed with local

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materials, such as cement and aggregates without the requirements of importing construction materials
from abroad.

4.2 Recommendation
The most important aspect of ensuring effective rural road project is to develop sense of ownership
among the road users by involving them in all aspects such as planning, designing, upgrading,
rehabilitation and maintenance. A close and continuous follow up Among the issues that should be given
maximum attention are:

 It is recommended that the proposed plan should be strictly and properly implemented by the
contractor and all parties.
 The study reveals that seasonal possibility of labor based road maintenance should be
encouraged.
 ERA should appoint senior environmentalist to supervise environmental monitoring and
management activities of the road, and to ensure that contractors utilize methods that protect the
environment, increase productivity of rural program, since the place have, high productivity in
terms of it is nature.
 Implementation of erosion control measures by designing and constructing appropriate
physical/engineering structures, and by implementing biological (re-vegetation) measures, as
well as by instituting follow up procedures to repair defects.
 Application of good practices during the road construction and collection and hauling of water
and selected materials to minimize unwanted impacts on the environment.
 Maximum care must be taken for sections protected forest and steep slopes that involve cut-and-
fill, Effective storm water management systems.
 The Highway Development and Management model (HDM) have are used during design and
after.

All in all the case study result that propose the best alternative of rigid pavement should have to be
implemented.

REFERENCE
[1] Development, O.F .E. C. (2005) Economic Evaluation of Long -Life pavements-Phase I.

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[2] Pavement Life-Cycle Cost Studies Using Actual Cost Data. 2005. p. four.

[3] Opinion, Evaluation on flexible and rigid pavement 2014.

[4] Authority, E.R., 17 Years Performance Assessment 2014, Ethiopian Road Authority, Road sector
Development, Addis Ababa, Ethiopia. p. 3-32.

[5] Smith, J.W.I.a.M.R., Life-Cycle Cost Analysis in Pavement Design 1998. p. 9.

[6] Anne Holt, Applied Research Associates, and Life Cycle Cost Analysis of Municipal
Pavement.

[7] (AASHTO) User Benefit Analysis for Highways. 2003.

[8] Engineering Design Report Chancho-Derba.2012, ERA: Addis Ababa, Ethiopia

(World Bank, 2015 report , Pavement Design Manual Volume II Rigid Pavements – 2013 and our
instructor reading material of Dr. Worku K. (as a cross reference)

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