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The assignment by Birungi Mubiru analyzes the proposed upgrade of the Rusorera-Kakindo road to a dual carriageway. It evaluates benefits such as reduced accident rates, lower vehicle operating costs, and time savings over a 10-year period, using economic analysis techniques to determine the project’s viability and justification.
The assignment by Birungi Mubiru from Atlantic International University focuses on the proposed upgrade of the Rusorera-Kakindo road to a dual carriageway. It outlines the project’s objectives, which include improving road safety, enhancing traffic flow, and reducing vehicle operating costs. The analysis considers various factors, including accident rates, vehicle speeds, and time savings for road users.
Key data points include the existing accident rate of 0.85 per million vehicle-kilometers, which is expected to decrease to 0.25 per million vehicle-kilometers after the upgrade. The average accident cost is estimated at $10,000, while the average vehicle time saving is valued at $2.00 per hour. The existing road has an average speed of 40 km/hr, compared to 85 km/hr for the upgraded road.
The assignment also details the economic evaluation of the project, which spans a 10-year period following the completion of construction. The benefits are categorized into three main areas: accident savings, operating cost savings, and time savings. The total benefits are calculated based on predicted traffic flows, with a significant increase in vehicle kilometers expected in the third year after the road is commissioned.
Construction costs are incurred primarily during the first two years, with ongoing maintenance costs factored into the analysis. The assignment emphasizes the importance of using techniques such as Net Present Value (NPV) and Benefit-Cost Ratio (BCR) to assess the project’s economic justification. The findings aim to provide a comprehensive understanding of the potential impacts and benefits of the road upgrade, supporting informed decision-making by the Ministry of Works and Transport.
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