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FCR Funding Requested (in $): [ Insert requested funding amount here ]
Please read the "How to Guide" Worksheet for guidance on how to use the benefit cost analysis model. Do not proceed with using the model
WITHOUT reading the "How to Guide" first. It is recommended that the user print this worksheet for easy referencing.
Introduction:
TfNSW has developed a benefit cost analysis model to assist councils in calculating benefit-cost ratio's for Fixing Country Road projects. A benefit-cost
analysis (BCA) is an appraisal tool used to analyse the feasibility of infrastructure projects.
- A case study example section has also been prepared to assist users in understanding what is to be considered in calculating a benefit-cost ratio
across different project types.
2.2
Estimate the number of years of service expected from the asset. Road assets such as bridges, roads etc. have asset lives typically greater than 30 years.
2.3 As defined in 2.1, profiled by expenditure per financial year. The total should be equal to the total project cost in the full FCR submission.
3 Cost Assumptions
3.1 In this section, please input maintenance costs for the current and project scenario. The maintenance costs under the current scenario should consider the
maintenance costs of roads, bridges, culverts etc. currently being used by the trucks on existing routes. The maintenance costs under the project scenario
should consider the change of maintenance costs for the existing assets used under the current scenario plus the maintenance costs of any new assets
and/or roads being used. Note that the routes being used under the current and project scenario may differ. Proponents are to outline the rational for
change of the maintenance costs in the "Referencing & Assumptions Table" Worksheet.
Maintenance costs include Routine Maintenance and Major Periodic Maintenance. These costs may increase over time under the current scenario if the
current asset is becoming increasingly degraded. Please insert these forecast changes (in real FY17/18 dollars) into the Cashflow Worksheet manually.
4.0 Demand Inputs & Assumptions
4.1.1 Provide the requested data by commodity. This information is crucial to calculating a BCR for the project and all fields are mandatory. A definition of each
data-type is provided in the definitions section below.
4.1.2 State the average forecast growth in vehicle movements per year under the current scenario (no infrastructure upgrade) and project scenario. The forecast
growth under the infrastructure upgrade scenario may differ if the new infrastructure triggers or generates additional freight movements. Please state the
assumptions used to derive this figure in Referencing & Assumptions Table Worksheet.
4.2 Profile the type of trucks used to transport each commodity, expressed as a percentage of total trucks. The truck profile may change significantly between
the "current scenario" and "project scenario" for projects that improve accessibility for higher productivity vehicles. If the exact vehicle is not available in the
table, select the vehicle that best matches.
5.0 Enter the number of incidents (fatalities, injuries and property damage) that are related or caused by the problem/infrastructure constraint. The figure
entered should be an annual average figure e.g. 1 injury in the last 5 years would be entered as 0.2 (1 injury / 5 years ). Please indicate if this data is an
estimate or actually recorded. If estimated, please provide a description of the rationale or methodology.
5.4 State the period in which safety data was measured and collected.
5.5 "Other" refers to any other relevant safety data or metrics that may be known. Please provide a detailed description in the "Referencing & Assumptions
Table" Worksheet.
Definitions
Total project costs
Is the total project cost in real FY17/18 dollars. The figure is to include all costs as identified in the FCR Full Application Form e.g. contingency,
construction, overheads, planning/development works etc. The cost should include all costs e.g. private, local, state and federal funding.
Current Situation
Refers to what would be required to maintain the status quo or prescribed levels of service over the life of the project i.e. what would happen without any
capital funding. The data template worksheet identifies the data required to define the "current scenario".
Project Upgrade Situation
Refers to what would happen if the proposed project was implemented. The data template worksheet identifies the data required to define the "Project
Scenario".
Average Trip Distance
Is the average (weighted average) distance that a commodity is transported from its origin to its end destination (in kilometres).
Additional Demand
Additional demand, as requested in Section 4.1.1. under the Project Scenario, refers to any additional commodities triggered by the project being
implemented E.g. Industry has committed to moving 30 tonnes of grain if a particular network constraint was addressed. This data requires supporting
analysis / evidence.
Recurrent Costs
Recurrent costs refer to any on-going, non-maintenance costs such as wages, operating costs, inspections etc.
Benefit-Cost Ratio
The benefit-cost ratio (BCR) is a key economic parameter calculated through a benefit-cost analysis. Is the present value of benefits divided by the present
value of costs. It is automatically calculated in the model. A BCR value greater than 1 indicates that benefits exceeds costs.
The section below provides a description of how an economic analysis would determine project benefits for different project types. It also provides an
indication of the types of data required (critical data) to achieve this.
Important Notes:
- All data inputted into the model will require supporting analysis, calculations, notes, assumptions and methodologies used under the "Referencing &
Assumptions Table"; and
- All data will need to be inputted for the current scenario and project scenario. They will then be compared to calculate the change / difference and BCR.
A project targeted at upgrading a bridge to HML standard would improve freight productivity by enabling larger and heavier trucks to operate on the
network. This type of project would result in fewer truck movements to transport the same freight task. An economic analysis would capture these benefits
by comparing the economic transport costs under the base case (involving a higher number of freight movements) to the upgrade option (fewer number of
freight movements). The economic model will calculate the vehicle operating savings, environmental costs and X for both scenarios and produce a BCR by
comparing both scenarios.
Critical data for this type of project includes, but is not limited to:
- vehicle type changes between the two scenarios;
- estimating the total reduction in freight trips required to deliver the freight-task;
- estimating the number of diverted trucks and any potential reduction in trip distances e.g. upgrading a bridge may divert existing traffic toward using the
bridge (that don't currently use the bridge); and
- estimating any additional (induced) trips that is triggered as a result of the project (that would not occur if the project did not happen).
A project involving a bypass may improve connectivity / accessibility for freight movements. This type of project would result in a decrease in the number of
kilometres travelled. An economic analysis would capture these benefits by comparing the economic transport costs of the base case (involving higher
tonne-km's) to the upgrade option (involving fewer tonne-km's). The economic model will calculate vehicle operating savings, environment cost savings,
safety benefits and environment benefits by quantifying and comparing the data provided in the data template worksheet for the current situation and
upgrade option scenario.
Critical data for this type of project includes but is not limited to:
- estimating the change in trip distance and travel time for freight movements impacted by the problem / project. Note, the distances will need to be
calculated for both the current and project scenario and compared to calculate the change / difference.
A project involving pavement re-sealing may provide maintenance, safety and freight productivity benefits. This type of project may increase freight
productivity by reducing the number of trucks required to deliver the freight-task (if the project increases the roads load bearing capacity). It may also
reduce the number of accidents through improved pavement quality as well as reduce the relative maintenance costs of the road (if the road was
becoming increasingly costly to maintain under the current situation). The economic model will calculate vehicle operating savings, environmental cost
savings, safety benefits, maintenance savings and freight productivity savings by comparing the data provided for the current and upgrade option
scenarios in the data template worksheet.
Critical data for this type of project includes but is not limited to:
- estimating the maintenance profile for the current and project upgrade option scenario - this will need to consider the change in maintenance costs for the
existing route and any additional maintenance under the project scenario;
- estimating the reduction in the number of accidents (if any);
- estimated change in vehicle composition due to increased pavement weight bearing capacity (if any).
*Note - If unit rates are not known/available, applicant may insert lump sum, by choosing lump sum in Unit column and input quantity as 1.
In this case unit rate, would be a total item value.
Item no. Description Unit Quantity Unit Rate ($) Amount ($)
1.00 Preliminaries
1.01 Design & investigation [insert lump sum if unit rates are not known/available]
1.02 Site establishment [insert lump sum if unit rates are not known/available]
1.03 Site facilities [insert lump sum if unit rates are not known/available]
1.04 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
1.05 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
2.00 Earthworks
2.01 Earthworks shaping [insert lump sum if unit rates are not known/available]
2.02 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
2.03 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
2.04 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
2.05 [insert additional cost item if required] [insert lump sum if unit rates are not known/available]
3.00 Drainage
3.01 Installation [insert lump sum if unit rates are not known/available]
3.02 Materials [insert lump sum if unit rates are not known/available]
3.03 [insert cost item] [insert lump sum if unit rates are not known/available]
3.04 [insert cost item] [insert lump sum if unit rates are not known/available]
3.05 [insert cost item] [insert lump sum if unit rates are not known/available]
5.00 Surfacing
5.01 Materials [insert lump sum if unit rates are not known/available]
5.02 Surfacing works [insert lump sum if unit rates are not known/available]
5.03 [insert cost item] [insert lump sum if unit rates are not known/available]
5.04 [insert cost item] [insert lump sum if unit rates are not known/available]
5.05 [insert cost item] [insert lump sum if unit rates are not known/available]
13.00 Contingency
13.01 [insert cost item] [insert lump sum if unit rates are not known/available]
13.02 [insert cost item] [insert lump sum if unit rates are not known/available]
13.03 [insert cost item] [insert lump sum if unit rates are not known/available]
13.04 [insert cost item] [insert lump sum if unit rates are not known/available]
13.05 [insert cost item] [insert lump sum if unit rates are not known/available]
Total excluding contingency & project management -
including contingency & project management -
FIXING COUNTRY ROADS: Funding Round 3
Benefit Cost Analysis Model
Data is required for all blue fields and is compulsory to generate a valid benefit cost analysis.
Please enter data in green fields if they apply to your project
1 Project Name
1.1 Council Proponent [ Insert Local Government Area here ]
1.2 Project Name [ Insert project name here ]
1.3 FCR Application ID 0
4 Demand Inputs
4.1 Summary of traffic and commodity movements
Data inputted in this section will be multiplied by standardised economic parameters to quantify the economic cost of the current scenario. All fields marked as blue are mandatory, for rows with an identified commodity. Project proponents are
to provide supporting analysis / reports to justify the validity of the data in the "Reference" Worksheet. Missing data in this section will produce an invalid BCR.
4.2.1 Vehicle profile breakdown (%) Commodity 1 Commodity 2 Commodity 3 Commodity 4 Commodity 5 Commodity 6
Light Commercial %
Rigid Trucks (2-axle, 6 tyre) %
Rigid Trucks (3-axle) %
4-axle Rigid (or semi) %
Semi Trailer (5-axle) %
Semi-Trailer (6-axle) %
Truck & Dog (7-axle) %
B-Doubles %
B-Triples/Road Trains %
Total 0% 0% 0% 0% 0% 0%
5 Safety
Please provide any specific relevant safety data in this section below.
Project Scenario
- Maintenance - existing road network maintenance after project
Data in this section will be multiplied by standardised economic parameters to quantify the economic cost of the project scenario. All fields marked as blue are mandatory, for rows with an identified commodity. Project proponents
are to provide supporting analysis / reports to justify the validity of the data - please refer to the "Sourcing" Worksheet. Missing data will produce an invalid BCR. Cells marked as green are only relevant to some projects. Please
refer to the definitions page for further information.
Projects that improve access for HPV's may trigger a change the types of vehicles used. Please input the "new" vehicle profile as percentages below and provide supporting analysis / reports in the "Sourcing" worksheet to justify
the data inputted.
Vehicle profile breakdown (%) Commodity 1 Commodity 2 Commodity 3 Commodity 4 Commodity 5 Commodity 6
Light Commercial %
Rigid Trucks (2-axle, 6 tyre) %
Rigid Trucks (3-axle) %
4-axle Rigid (or semi) %
Semi Trailer (5-axle) %
Semi-Trailer (6-axle) %
Truck & Dog (7-axle) %
B-Doubles %
B-Triples/Road Trains %
Total 0% 0% 0% 0% 0% 0%
Base Case (Current Scenario) Initial Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
I. COSTS 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 2045-46 2046-47 2047-48 Totals
I Recurrent Costs
B Routine Maintenance Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
C Major Periodic Maintenance Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
D Other Recurrent Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TTL Total Recurrent Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TLL TOTAL COSTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
II. Economic Costs
F Value of Travel Time 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
G Vehicle Operating Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
H Air pollution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
I Greenhouse Gas Emission 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
J Noise 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ###
K Water Pollution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
L Nature & Landscape 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
M Upstream & Downstream Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N Fatality Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O Injury Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
P Property Damage Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
S0 Project Specific Safety Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s1 Fatality Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s2 Injury Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s3 Property Damage Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TTL Total Economic and Safety Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Project Scenario
Initial Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
I. COSTS 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 2038-39 2039-40 2040-41 2041-42 2042-43 2043-44 2044-45 2045-46 2046-47 2047-48 Totals
I Capital Costs
A Capital Cost 0 0 0 0 0
TTL Total Capital Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
I Recurrent Costs
B Routine Maintenance Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
C Major Periodic Maintenance Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
D Other Recurrent Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
E Residual Cost 0 0
TTL Total Recurrent Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TTL TOTAL COSTS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
II. Economic Costs
F Value of Travel Time 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
G Vehicle Operating Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
H Air pollution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
I Greenhouse Gas Emission 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
J Noise 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ###
K Water Pollution 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
L Nature & Landscape 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
M Upstream & Downstream Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N Fatality Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O Injury Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
P Property Damage Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
S0 Project Specific Safety Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s1 Fatality Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s2 Injury Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
s3 Property Damage Cost 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TTL Total Economic and Safety Costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
*Note that economic benefits are not realised until total capex has been expended
DEFINITIONS
Net present value (NPV)- the difference between the present value of benefits and the present value of costs; i.e. PVB - PVC. A positive net present value indicates that the project has economic merit.
Benefit-Cost Ratio (BCR)
The BCR is the present value of benefits (economics & financial) divided by the present value of costs. A BCR value greater than 1 indicates that benefits exceeds costs
Net Present Value (NPV) & Net Present Value Invested (NPVI)
NPV is the present value of the project's benefits minus the present value of the projects costs. A value greater than zero indicates that project benefits exceed project costs. The NPVI measures the overall economic return of a
project in relation to its requirements for initial capital expenditure which is the constrained input.
First Year Rate of Return (FYRR)
The FYRR is a measure of the benefits achieved in the first full year of a scheme's operation divided by the capital costs incurred to achieve this. It is expressed as a percentage
Internal Rate of Return (IRR)
The IRR is the discount rate at which the present value of benefits equals the present value of costs. The proposed project is economically viable if the IRR is more than the NSW Treasury discount rate of 7%.
We encourage councils to use this economic model when applying for funding under other programs. Model can be used to calculate Benefit Cost Ratios (BCRs), which are required under many funding programs. Please also see the FAQ
document, if you require further assistance please contact us via freight@transport.nsw.gov.au
[ Identify the name, date and author of the report E.g. Data Traffic Count,
Section 3.1 - Maintenance [ Provide an overview of report and its relevance to the economic model ]
March 2013, SKM ]
Other
Non Urban
Vehicle Type Occupancy rate (Persons/vehicle) Value per occupant ($/person-hour) Freight ($/Vehicle-hour)
Cars- Private 1.7 15.71 0.00
Cars- Business 1.3 50.28 0.00
Light commercial (2 axle 4 tyre) 1.3 27.82 0.84
Medium (2 axle 6 tyre) 1.2 28.18 2.27
Heavy (3 axle) 1 28.72 7.79
Articulated trucks - 4 axle 1 29.07 16.79
Articulated trucks - 5 axle 1 29.43 21.40
Articulated trucks - 6 axle 1 29.43 23.08
Articulated trucks - 7 axle 1 29.43 23.08
B-Double 1 29.43 33.39
Triple road train 1 29.89 65.78
3 Accident Costs
Table 45 Fatality and injury costs, Willingness to Pay Approach, $2012-13 p 257
4 Environmental Impacts
Table 53 Externality unit costs for freight vehicles ($ per 1000 tonne-kilometre travelled) - p261
Rural Rural
Externality Type Light Vehicle ($/1000 tonne-km) Heavy Vehicle ($/1000 tonne-km)
Air pollution 0.00 0.27
Greenhouse Gas Emission 62.65 5.96
Noise 0.00 0.45
Water Pollution 0.30 1.61
Nature & Landscape 0.23 4.48
Upstream & Downstream Costs 208.81 23.87