Economic evaluation of minor roading projects

The work reported here was undertaken to investigate alternative methods of evaluating minor roading projects with a capital cost of less than $50 000. Literature relevant to this type of project is reviewed briefly. The 21 case studies are described and evaluated using the two methods commonly used in New Zealand: first year rate of return and benefit cost ratio. The major problem of incorporating intangible benefits is discussed. An alternative method of evaluation is proposed which allows the benefits of a project to be discounted against its estimated cost and which allows the evaluator to incorporate benefits one at a time, starting with those benefits which are easily quantified and progressing to those which are less tangible. Examples of the alternative methods are given.