Life Cycle Cost Analysis For Road Maintenance Interventions (a Case Study For Alemgena District)

The main purpose of this study was to conduct the life-cycle cost analysis of road maintenancerninterventions undertaken by the Ethiopian Roads Authority (ERA), considering the AlemgenarnRoad Maintenance District as a case study. In order to meet the objectives of the study, a casernstudy was considered accounting for both quantitative and qualitative data. The road conditionrnsurvey data were collected from ERA’s Alemgena Road Maintenance District/(ARMD). From thernfive (5) road maintenance sections ten, (10) paved roads were selected for investigation andrnanalysis. The collected data were entered into the Highway Development and Management Modelrn(HDM-4) and life-cycle cost analysis (LCCA) was carried out to determine the economic viabilityrnof different road maintenance interventions. The roads conditions considered in the study rangesrnfrom poor to fair. The existing conditions of the roads help to determine the kinds of maintenancern/ improvements requirements. All possible input data were collected and entered into HDM-4. ThernLCCA was conducted for 20 years with additional one year of intervention period. The analysesrnwere carried out with consideration of with and without improvement cases. The results indicatedrnthat the proposed interventions were economically viable fulfilling the requirements, with the netrnpresent values (NPVs) of well over zero, economic internal rates of return (EIRRs) of greater thanrnthe opportunity cost of capital, which was (10%), and benefit-cost ratios (B-CRs) of greater thanrnone. This tells us that consideration of all costs and benefits during the lifetime of the projects givernbetter decision for proposed interventions alternatives. In terms of budget, the 20 years’ analysisrnperiod was considered in this investigation. The total lifetime cost of maintenance activitiesrncurrently applied by ERA is much higher than the proposed maintenance interventions and it isrnnot economically optimum therefore, based on the findings, workable recommendations and thernneed for further research were forwarded.rnKey Words: Life-Cycle Cost Analysis, Road Maintenance Interventions, Evaluation Parameters

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