Life-Cycle Cost Analysis of Infrastructure Projects

Abstract

This paper reviews the existing research work on the application of Life-cycle cost approach (LCCA) with an objective to identify potential aspects for its adoption in the developing countries. It seeks to influence the policy understanding of why life-cycle cost assessment is central to achieving the goals of sustainable development as well as sustainable service delivery and to influence the behaviour of sector stakeholders. The idea is to mainstream LCCA into governance processes at all institutional levels from local to national in order to increase the ability and willingness of decision makers (both users and those involved in service planning, budgeting and delivery) to make informed and relevant choices between different types and levels of products and services.It is argued that a comprehensive LCCA can provide 'win-win' strategies in terms of identifying appropriate technologies, products and services that are environmentally, economically and socially sustainable. LCCA prompts policy shifts towards a systems perspective. Adoption of LCCA evolves from life-cycle thinking that needs to be ingrained into the macro policy. This calls for awareness building and capacities at the policy and planning levels.