Benefit-cost analysis of highway maintenance in jimma to agaro road

Abstract

A well-developed transportation network is vital to the economic development of the country. In the history of Ethiopian road development program, almost all of the road pavements are flexible, and it demands high foreign currency for asphalt material importing from abroad. Since the cost comprises of a large portion of government’s investment, a careful evaluation of the project alternatives is important to make the right choice for a particular project. In the history of Ethiopian road development program, almost all of the road pavements are flexible, and it demands high foreign currency for asphalt material importing from abroad. One of the problems seen from Jimma to Agaro road is lack of maintaining the road properly and regularly. Road without regular maintenance deteriorate very quickly. If nothing is done, roads with a design life of decades will need replacing or major repair work just after a few years. Poorly maintained roads constrain mobility, significantly raise vehicle operating costs, travel time and their associated human and property costs, which again will infect the economy of the transporters. The transporters will transfer their expenses to the customers and the economy of the whole country suffer. As the road network deteriorates, the whole country loses major assets created with vast amounts of money, time and effort. In this study analyzed the benefit-cost of highway maintenance in Jimma to Agaro road. The population under study was Vehicles, Passengers, Drivers and Road Segment. This population enable the researcher to obtain the necessary data for the study. This study was followed on a purposive sampling selection process and employed a mixed research approach both descriptive and analytical. During data collection, Maintenance data from ERA, Accident data from Jimma Police Commission, Travel fare data from Jimma Road Transport Authority, Travel time measured, AADT counted and Field survey of road segment was taken. After determination of pavement maintenance cost, travel time saving, vehicle operating saving and travel fare saving, the net present worth of the benefit and cost was calculated. Results from a benefit-cost analysis can be used to evaluate both the monetized and non-monetized effects and impacts of alternatives when a decision needs to be made. The existing pavement condition using Pavement surface evaluation and rating system showed that from the total length 46km, 10.292km in Good, 26.898km in Fair, 4.84km in Poor and 3.97km in Very poor condition. So, based on PASER rating the result shows that the existing road condition needs more improvement. The total benefit gained from travel time saving, vehicle operating saving and transport fare saving after discounting is NPWB = 374,351,288.17 birr and the maintenance cost after discounting is NPWC = 137,931,578.4 birr. Finally the result of analysis the benefit-cost ratio greater than 1 which is 2.71 means maintenance cost after 10 years pay back and there is additional saving of benefit which show the maintenance cost is less than the benefit gained so, maintaining a road periodically saves the values of country asset not only this it reduce the reconstruction of road cost and one contribute role to increase the economic activity of the area. Recommend to the road authorities need to give more emphasis on road maintenance activity, period and quality of maintenance.