Cost Benefit Analysis Of Transport Infrastructure Projects Construction

Cost-benefit analysis is a well-known resource allocation technique used to evaluate spending plans and measure the costs and revenues a community would generate in implementing the evaluated plan.This study highlights the importance of using cost-benefit analysis in transport sector projects to rationally allocate financial resources and demonstrates the cost-benefit analysis of transport infrastructure projects using the Lamu Port,South Sudan and Ethiopia Transport Corridor(LAPSSET Corridor)as a case study.In reviewing statewide plans,the study found a significant number of projects improving various aspects of the transportation system.Projects in different regions may have differences in construction costs,which will have an impact on cost-benefit analysis,especially for larger states,where geographic differences may pose more problems.The study used a cross-sectional survey research design with a target population of 620 stakeholders related to the LAPSSET corridor.A semi-structured questionnaire survey of 243 respondents was conducted,covering all questions related to the research objectives,ensuring smooth data processing prior to fieldwork.Among the 243 questionnaires,a total of 200 responses were received,with a response rate of82.3%.These correctly filled questionnaire responses were used to obtain comparative weights between decision element attributes.The findings highlighted a cost-benefit analysis of infrastructure projects in the LAPSSET corridor,which found that the resulting benefits outweighed the substantial project costs,resulting in a benefit-cost ratio(BCR)of 2.79.Since the BCR is above 1,the infrastructure is expected to be economically sound.However,the average impact measure on household spending is imprecise,i.e.statistically insignificant.However,the project’s dependence on land market conditions(share of infrastructure land in total area)and output market conditions(percentage of private enterprise)is statistically significant.From an economic point of view,the LAPSSET Corridor project estimates that investments in core projects will contribute 2%-3% to the Gross Domestic Product(GDP)and5% to 8% of the country’s GDP through attracted and generated investments,resulting in sustained economic growth in the coming years.This view is supported by the fact that LAPSSET corridor projects typically generate higher growth figures from new investments in less developed regions.