V. TRAFFIC AND TRANSPORTATION

1. PLANNING AND MANAGEMENT

A. COMPLETED PROJECTS
5. Economic Analysis of the Upgrade and Improvement for Kawrthah – Kanhmun – Lowerpu Road in Mizoram
Duration

October 2005 to December 2005
Central Road Research Institute, New Delhi (R)

 

Present status and progress

Completed

 
Findings/Conclusions

Highway Development and Maintenance (HDM-4) software has been effectively used for economic analysis of the road project proposal for which detailed project report (DPR) is already prepared by the Public Works Department (PWD), Government of Mizoram. The entire analysis work has been carried in consultation with the DPR staff of PWD and in their presence at Aizawl. The economic evaluation of the proposal is submitted to the Planning Commission, Government of India by the Public Works Department (PWD), Government of Mizoram.

Salient features of the upgrade proposal made in the DPR
• Removal of remaining road structure for 28.785 KM
• Subbase of the remaining length (11.235 KM) will be retained.
• 150 mm Granular Subbase (GSB) for 28.785 KM will be prepared.
• Construction of 150 mm Wet Mix Macadam (WMM) above GSB for 40 KM
• Wearing course of 20 mm mixed seal (MSS) for 40 KM
• The entire pavement layer strength is 3.9 (SNP) will be achieved.
• The design life is estimated as 10 years and Cumulative Standard Axle during this period is 1.08 msa
• Cost of upgrade is estimated as Rs. 4.697 million/KM. Total estimated cost is Rs. 187.9 million for 40 KM.

Findings of the economic evaluation of the upgrade proposal are
• Analysis produced EIRR= 20.3%, NPV= 84.732 million Rupees, NPV/CAP= 0.609 (Discount rate was taken as 12%)
• With 20% increase in anticipated expenditure (RAC), EIRR= 17.3%, NPV= 61.009 million Rupees, NPV/CAP= 0.359 which shows upto 20% increase in construction and maintenance cost, the project is economically viable.

 
Limitations
Economic evaluation of a DPR is based on the data prepared by PWD, Govt. of Mizoram. Parameters such as traffic projection, economic cost estimated.
 
Recommendations

Economic Analysis of the Upgrade and Improvement for Kawrthah – Kanhmun – Lowerpu Road in Mizoram, Technical Report, CRRI, Oct 2005