Economic-efficiency analysis of rawalpindi bypass project: A case study

Economic-efficiency analysis of rawalpindi bypass project: A case study

Safe, efficient and user-friendly transportation of people and goods is the premier concern for highway agencies due to a growing tendency in urbanization, especially in developing countries such as Pakistan. This study presents economic-efficiency analysis of a proposed project, i.e. Rawalpindi Bypass, and an existing roadway structure in Pakistan. Considering the highway agency as well as road users, this study determines the transportation demand estimation (TDE), project cost and various savings such as travel time (TT), safety and vehicle operating cost (VOC). As the transportation decision-making (TDM) process usually involves the evaluation of an alternative decision with respect to a base-case DO-NOTHING Scenario, this study considers the existing roadway structure with no improvements as a DO-NOTHING Scenario, whereas the proposed bypass with two lanes in each direction is considered as an alternative. Economic-efficiency analysis is then carried out, for decision-making based on the monetary as well as non-monetary dimensions, using net present value (NPV) and benefit cost ratio (BCR) techniques. The study concludes that the proposed bypass is a viable alternative as compared to the existing roadway. The study’s methodology and findings are expected to help the highway agencies and concerned stakeholders to conduct efficient TDM.