Life Cycle Cost Analysis for Road Maintenance Interventions (A case Study for Alemgena District)
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Date
2017-10
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Addis Ababa University
Abstract
The main purpose of this study was to conduct the life-cycle cost analysis of road maintenance
interventions undertaken by the Ethiopian Roads Authority (ERA), considering the Alemgena
Road Maintenance District as a case study. In order to meet the objectives of the study, a case
study was considered accounting for both quantitative and qualitative data. The road condition
survey data were collected from ERA’s Alemgena Road Maintenance District/(ARMD). From the
five (5) road maintenance sections ten, (10) paved roads were selected for investigation and
analysis. The collected data were entered into the Highway Development and Management Model
(HDM-4) and life-cycle cost analysis (LCCA) was carried out to determine the economic viability
of different road maintenance interventions. The roads conditions considered in the study ranges
from poor to fair. The existing conditions of the roads help to determine the kinds of maintenance
/ improvements requirements. All possible input data were collected and entered into HDM-4. The
LCCA was conducted for 20 years with additional one year of intervention period. The analyses
were carried out with consideration of with and without improvement cases. The results indicated
that the proposed interventions were economically viable fulfilling the requirements, with the net
present values (NPVs) of well over zero, economic internal rates of return (EIRRs) of greater than
the opportunity cost of capital, which was (10%), and benefit-cost ratios (B-CRs) of greater than
one. This tells us that consideration of all costs and benefits during the lifetime of the projects give
better decision for proposed interventions alternatives. In terms of budget, the 20 years’ analysis
period was considered in this investigation. The total lifetime cost of maintenance activities
currently applied by ERA is much higher than the proposed maintenance interventions and it is
not economically optimum therefore, based on the findings, workable recommendations and the
need for further research were forwarded.
Key Words: Life-Cycle Cost Analysis, Road Maintenance Interventions, Evaluation Parameters
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Keywords
Life-Cycle Cost Analysis; Road Maintenance Interventions; Evaluation Parameters