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RFP for BHOPAL & Narmadapuram Division - Madhya Pradesh ...

RFP for BHOPAL & Narmadapuram Division - Madhya Pradesh ...

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4.12 Economic Analysis4.12.1 The road project should be divided into the traffic homogenous links based on thefindings of the traffic studies. The homogenous links of the road project shouldbe further subdivided into sections based on physical features of road andpavement, sub-grade and drainage characteristics etc. The economic analysisshall be carried out separately <strong>for</strong> each traffic homogenous link as well as <strong>for</strong> theproject.4.12.2 The values of input parameters and the rationale <strong>for</strong> their selection <strong>for</strong> theeconomic analyses shall be clearly brought out.4.12.3 For models to be used <strong>for</strong> the economic analyses, the calibration methodology andthe basic parameters adapted to the local conditions shall be clearly brought out.4.12.4 The economic should bring out the priority of the different homogenous links interms of project implementation.4.12.5 The Consultants shall carry out economic analysis <strong>for</strong> the road project inaccordance with the ADB guidelines <strong>for</strong> Economic Analysis of Projects. Theanalysis should be <strong>for</strong> each of the sections covered under this TOR. The benefitand cost streams should be worked out <strong>for</strong> the project using HDM-IV or otherinternationally recognized life-cycle costing model.4.12.6 The economic analysis shall cover but be not limited to be following aspects:(i)(ii)(iii)(iv)(v)(vi)assess the capacity of existing roads and the effects of capacityconstraints on vehicle operating costs (VOC);calculate VOCs <strong>for</strong> the existing road situation and those <strong>for</strong> theproject;quantify all economic benefits, including those from reducedcongestion, travel distance, road maintenance cost savings and reducedincidence of road accidents; and,estimate the economic internal rate of return (EIRR) <strong>for</strong> the projectover a 200-year period after construction/rehabilitation. In calculatingthe EIRRs, identify the tradable and non-tradable components ofprojects costs and the border price value of the tradable components;Saving in time value.Deleted.4.12.7 Economic Internal Rate of Return (EIRR) and Net Present Value (NPV) should beworked out based on these cost-benefit stream. Furthermore, sensitivity of EIRRand NPV worked out <strong>for</strong> the different scenarios as given under:Scenario - IScenario - IIBase Costs and Base BenefitsBase Costs plus 20% and Base BenefitsADB-IV62

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