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Home Various topics Economic evaluation Private sector financing and road tolling Finance and tolls

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Finance and tolls

Method of evaluation

Section 11.2 of the Economic evaluation manual, volume 2, 2005 details:

  • Issues that can arise
  • Consumer surplus
  • Range of options
  • Methods of setting tolls
  • Value of travel time

Benefits

Section 11.7 of the Economic evaluation manual, volume 2, 2005 covers:

  • What evaluation of benefits involves
  • Tolled versus un-tolled roads
  • Tolls
  • Traffic congestion reduction
  • Dis-benefits during construction

Financial evaluation

Section 11.9 of the Economic evaluation manual, volume 2, 2005 details:

  • Financial evaluation vs economic evaluation
  • Feasibility of private sector financing
  • Cash flows to be measured
  • Treatment of specific items
  • Weighted average cost of capital
  • Summary measures of commercial merit

Cost benefit evaluation

Section 11.10 of the Economic evaluation manual, volume 2, 2005 details:

  • Particular requirements
  • Present value of tolls
  • National BCR for a toll road
  • Government BCR for a toll road
  • First year rate of return for a toll road
  • Evaluation criteria for projects with private sector involvement

Sensitivity and risk analysis

Section 11.12 of the Economic evaluation manual, volume 2, 2005 covers:

  • When sensitivity analysis applies
  • Identification of risks
  • Test assumptions
  • Test affect on cashflows
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