HDM-4

HIGHWAY DEVELOPMENT & MANAGEMENT

Economic Analysis Summary
Study Name: Rewa Bypass
Run Date: 20-03-2024
Currency: Indian Rupee (millions)
Discount: 8%
Analysis Mode: Analysis-by-Project

Alternative: Do Something (Prop. 4 Lane) vs Alternative: Do Nothing (Ex. 2 Lane)

Sensitivity Scenario: Base Sensitivity Scenario

Increase in Road Agency Costs Savings in Savings in Savings in Reduction Net Net
MT VOC MT Travel NMT Travel in Accident Social / Economic
Time Costs & Operating Costs Exogenous Benefits
Capital Recurrent Special
Costs Benefits (NPV)
Undiscounted 3,671.98 70.55 0.00 24,716.83 13,465.07 3.86 0.00 0.00 34,443.23
Discounted 3,662.76 27.05 0.00 9,678.06 5,401.29 1.97 0.00 0.00 11,391.51

Economic Internal Rate of Return (EIRR) = 27.8% (No. of solutions = 1)

Alternative: Do Something (Prop. 4 Lane) vs Alternative: Do Nothing (Ex. 2 Lane)

Sensitivity Scenario: 15% Traffic Reduction

Increase in Road Agency Costs Savings in Savings in Savings in Reduction Net Net
MT VOC MT Travel NMT Travel in Accident Social / Economic
Time Costs & Operating Costs Exogenous Benefits
Capital Recurrent Special
Costs Benefits (NPV)
Undiscounted 3,671.98 70.55 0.00 19,885.51 11,204.44 3.69 0.00 0.00 27,351.11
Discounted 3,662.76 27.05 0.00 7,936.66 4,593.90 1.90 0.00 0.00 8,842.65

Economic Internal Rate of Return (EIRR) = 25.2% (No. of solutions = 1)

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 Alternative: Do Something (Prop. 4 Lane) vs Alternative: Do Nothing (Ex. 2 Lane)
Sensitivity Scenario: 15% Increase in Cost

Increase in Road Agency Costs Savings in Savings in Savings in Reduction Net Net
MT VOC MT Travel NMT Travel in Accident Social / Economic
Time Costs & Operating Costs Exogenous Benefits
Capital Recurrent Special
Costs Benefits (NPV)
Undiscounted 4,222.78 70.55 0.00 24,716.83 13,465.07 3.86 0.00 0.00 33,892.43
Discounted 4,212.17 27.05 0.00 9,678.06 5,401.29 1.97 0.00 0.00 10,842.10

Economic Internal Rate of Return (EIRR) = 25.1% (No. of solutions = 1)

Alternative: Do Something (Prop. 4 Lane) vs Alternative: Do Nothing (Ex. 2 Lane)

Sensitivity Scenario: 15% Traffic Reduction + 15% Increase in Cost

Increase in Road Agency Costs Savings in Savings in Savings in Reduction Net Net
MT VOC MT Travel NMT Travel in Accident Social / Economic
Time Costs & Operating Costs Exogenous Benefits
Capital Recurrent Special
Costs Benefits (NPV)
Undiscounted 4,222.78 70.55 0.00 19,885.51 11,204.44 3.69 0.00 0.00 26,800.31
Discounted 4,212.17 27.05 0.00 7,936.66 4,593.90 1.90 0.00 0.00 8,293.24

Economic Internal Rate of Return (EIRR) = 22.6% (No. of solutions = 1)

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