JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objectives

The student needs to

• 1. Understand the need & scope of project formulation.
• 2. Learn evaluation of economics of highway projects.
• 3. Understand the concepts of economic analysis and shadow pricing
• 4. Learn to deal with project analysis and environmental impact assessment.

Course Outcomes

At the end of the course, students will be able to

• 1. Understand project formulations & project evaluation.
• 2. Analysis the feasibility of highway projects.
• 3. Demonstrate the need for environmental impact assessment.

UNIT - I

Project Formulation: Project Preparation – Flow Chart for Project preparation. Project Cycle- Project Formulation – Need and Scope of Project Formulation – Various Aspects and Approaches in Project Formulation. Stages in Project Formulation. Preparation of Feasibility Report and DPR – Guidelines.

UNIT - II

Economic Evaluation: Need for Economic Evaluation; Stages involved in Economic Analysis; Cost and Benefit components; Discounting Criteria; Welfare economics; Social costs; Rate of Return; Road User Cost study in India; Value of Travel time Savings – Economic concept of evaluation of travel time savings; Issues connected with evaluation of travel time savings. Vehicle operating costs – Components of VOC, Accident costs; Methodologies for economic evaluation of an accident.

UNIT - III

Economic Analysis: Basic Concepts of Economic Analysis, Principles of Economic Analysis; Cash flow diagrams; Time value of Money; Development of cash flow Diagrams; Methods of Economic Evaluation –Equivalent Uniform Annual Cost Method; Present worth of cost method; - Equivalent uniform annual net return method; Net present value method; Benefit cost ratio method; Rate of Return Method. Applications of these methods to highway projects.

UNIT - IV

Project appraisal by shadow pricing with case studies: Toll system analysis, Financial analysis; Budgeting.

UNIT - V

Environmental impact assessment: Basic Concepts, Objectives, Transportation Related Environmental Impacts – Vehicular Impacts – Safety and Capacity Impacts – Roadway Impacts – Construction Impacts, Environmental Impact Assessment – Environmental Impact Statement, Environment Audit, Typical case studies.

REFERENCE BOOKS:

• 1. Transportation Engineering Economics – Heggie. I. G.; Mc Graw Hill Publishers.
• 2. Economic Analysis for Highways – Winfrey.R; International TextBook Company.
• 3. Traffic Engineering and Transport Planning – L.R Kadiyali, Khanna Publishers.
• 4. Road User Cost Study, CRRI
• 5. Road Project Appraisal, for Developing Countries, J.W.Dickey ,John Wiley & Sons. R19 M.TECH TRANSPORTATION ENGG.
• 6. IRC: SP: 19; 2001, Manual For Survey, Investigation & Preparation of Road Projects.
• 7. IRC: SP: 30, Manual on Economic Evaluation of Highway Projects in India. R19 M.TECH TRANSPORTATION ENGG. M.TECH.- I YEAR- II SEMESTER