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Cost-Benefit Analysis of BRT Systems

The assignment focuses on conducting a Cost-Benefit Analysis for a proposed Bus Rapid Transit (BRT) system in a metropolitan area, evaluating three alternatives with varying capacities and costs. Students are required to compute the Benefit-Cost ratio for each option, determine their economic viability, and consider non-economic factors influencing the decision. The project emphasizes the application of engineering economics in infrastructure planning and the importance of stakeholder involvement.

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13 views3 pages

Cost-Benefit Analysis of BRT Systems

The assignment focuses on conducting a Cost-Benefit Analysis for a proposed Bus Rapid Transit (BRT) system in a metropolitan area, evaluating three alternatives with varying capacities and costs. Students are required to compute the Benefit-Cost ratio for each option, determine their economic viability, and consider non-economic factors influencing the decision. The project emphasizes the application of engineering economics in infrastructure planning and the importance of stakeholder involvement.

Uploaded by

zubairkhkhan913
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CECOS University of IT and Emerging Sciences

Peshawar
DEPARTMENT OF CIVIL ENGINEERING

Assignment#4
(Complex Engineering Problem)

Semester: Spring-2025 Program: [Link]. Civil Engineering

Subject & Course Code: Engineering Economics Lectured by: Engr. Asad Jamil Khalil
Due Date: 18-07-2025 Max Marks: 10
Name of Student: Reg. Number:

Marks CL
Question # 1 Total Marks 10 3 TL C-2 PLO 2
Obtained O

De
Problem Statement:

Cost-Benefit Analysis for a Public Transit System Project in an Urban Area

Background: The city administration of a rapidly growing metropolitan area is planning


to implement a Bus Rapid Transit (BRT) system to address traffic congestion, reduce
travel time, and lower vehicle emissions. Three alternatives are being considered:

Alternative A: Basic BRT system with moderate capacity and coverage.

Alternative B: Enhanced BRT system with higher capacity, additional dedicated lanes,
and more stations.

Alternative C: Hybrid system integrating BRT with electric buses and smart ticketing.

The estimated project life is 30 years, and the interest rate is 10%. The following table
summarizes the annual benefits and costs for each alternative:

Page 1 of 3
Alternative Alternative
Criteria Alternative C
A B
Initial Investment (PKR million) 4,000 6,500 8,000
Annual Operating & Maintenance Cost (PKR million) 250 300 350
Annual Benefits (Time savings, fuel savings, pollution
700 1,200 1,600
reduction, PKR million)

Compute the Benefit-Cost (B/C) ratio for each alternative using the present worth method.

 Assume all cash flows are uniform and occur annually over 30 years. Use the appropriate P/A
factor for present worth computation.
 Determine whether each alternative is justified (i.e., B/C ratio ≥ 1).
 Recommend the most economically viable option and justify your decision.
 Discuss any non-economic factors (e.g., public acceptance, environmental impact, future
scalability) that may affect the final decision.

Page 2 of 3
S. No Attribute Justification
1. Preamble Involves applying engineering
economics to large-scale
infrastructure planning..
2. Range of conflicting requirements Balances between initial costs, long-
term savings, and environmental
impact.
3. Depth of analysis required Have no obvious solution and require
abstract thinking, originality in
analysis to
formulate suitable models.
4. Depth of knowledge required Uses engineering and economic
principles to guide public investment.

5. Familiarity of issues Introduces real-world urban


development and transportation
economics.
6. Extent of applicable codes N/A
7. Extent of Stakeholder involvement and level of
Involves government, commuters,
Conflicting requirements
environmental groups, and financiers.
8. Consequences Long-term effects on urban mobility,
air quality, and city growth.

9. Interdependence Interlinks with civil planning,


environmental engineering, and public
policy.

Page 3 of 3

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