Stages of analysis

Stages of analysis

Section 5.3 of the Economic evaluation manual - volume 1 - 2008 (810 KB) describes the stages of analysis, which are also reproduced in the table below.

Full Procedures for road projects - Stages of analysis
Stage Description Extra information Procedure (Chapter 5) Worksheet (Appendix 14)
1 Where appropriate, complete a project feasibility report click here for multiple worksheets
2 Describe the do minimum, alternatives and options and consider packages Worksheet 1 (PDF 85 KB) Worksheet1 (Word doc 80 KB)
3 Assemble basic information on route, traffic, demand estimates, travel impacts etc, as appropriate Appendix A2 (PDF 185 KB) Click here for multiple worksheets
4 Undertake transport model checks as required click here for multiple worksheets
5 Where appropriate calculate travel times for the do minimum and options Appendix A3 (PDF 360 KB),

Appendix A11 (PDF 265 KB)		 Click here for multiple worksheets
6 Quantify and calculate the appropriate monetised project benefits and dis-benefits for the do minimum and options, including
  • Travel time cost savings, including (if appropriate) dis-benefits during construction
 Appendix A4 (PDF 1.2 MB) Worksheet A4 (PDF 65 KB) Worksheet A4 (Word doc 75 KB)
  • Vehicle operating cost savings
 Appendix A5 (PDF 750 KB) click here for multiple worksheets
  • Accident cost savings
 Appendix A6 (PDF 560 KB) click here for multiple worksheets
  • Vehicle passing lane benefits
 Appendix A7 (PDF 455 KB) click here for multiple worksheets
  • Monetised external impacts
 Appendix A8 (PDF 235 KB) click here for multiple worksheets
  • Vehicle emissions
 Appendix A9 (PDF 170 KB) click here for multiple worksheets
  • National strategic factors
 Appendix A10 (PDF 215 KB) Worksheet A10 Worksheet A10 (Word doc 65 KB)
7 Describe and quantify any significant non-monetised external impacts, where possible. Appendix A8 (PDF 235 KB) click here for multiple worksheets
8 Estimate the appropriate project costs Worksheet 2 (PDF 70 KB) Worksheet 2 (Word doc 115 KB)
9 Summarise the benefits and costs of do-minimum and project options, including their:
  • Type
  • Timing
  • Estimated value
  • Year in which estimate was made
  • Growth rate over the project evaluation period
 Worksheet 2 (PDF 70 KB) Worksheet 2 (Word doc 115 KB)
10 Describe and evaluate the benefits and costs of mitigation measures for external impacts Worksheet A8.2 (PDF 70 KB) Worksheet A8.2 (Word doc 65 KB)
11 Describe business benefits and equity impacts (particularly those relating to transport dis-advantaged), if appropriate
12 Discount the benefits, dis-benefits and costs for the do-minimum and project options over the period of analysis and sum them to obtain the total present value (PV) of benefits and costs. Apply update factors as necessary. Appendix A1 (PDF 130 KB) click here for multiple worksheets
13 List the PV of benefits and costs for the do-minimum and each option, calculate the benefit and cost differentials for each option (compared to the do-minimum) and calculate the national benefit cost ratio and the government benefit cost ratio (if appropriate) for all options Appendix A12 (PDF 115 KB) Worksheet 3 (PDF 70 KB) Worksheet 3 (Word doc 110 KB)
14 Use incremental analysis to select the preferred option if there is more than one mutually exclusive option (including different mitigation measures). Worksheet 4 (PDF 85 KB) Worksheet 4 (Word doc 90 KB)
15 Calculate the first year rate of return FYRR for the preferred project option. Worksheet 5 (PDF 75 KB) Worksheet 5 (Word doc 80 KB)
16 Conduct a sensitivity analysis on the uncertain elements of the preferred project option. Worksheet 6 (PDF 65 KB) Worksheet 6 (Word doc 90 KB)
17 Undertake a risk analysis if the project costs are greater than (>) $4 million for infrastructure activities or (>) $1 million for travel demand management, rail and sea freight activities or there are other unpredictable events that may affect the project, Appendix A13 (PDF 230 KB) click here for multiple worksheets
18 Complete the project evaluation checklist to verify completeness of information, accuracy of calculations and validity of assumptions. Worksheet 7 (PDF 75 KB) Worksheet 7 (Word doc 90 KB)
19 Complete the project evaluation summary, including the project description (which is the same as in LTP online); road and traffic data; travel times etc, PV of benefits and costs; BCR and FYRR for the do-minimum and preferred option. Worksheet 1 (PDF 85 KB) Worksheet 1 (Word doc 80 KB)