Revenue components of road construction operations based on economic feasibility analysis

Abstract

Regional development is closely related to the provision of infrastructure, namely the road network with the hope of creating a positive impact. Roads as a means of connecting, open access, play a role in the smooth movement of people and goods and have the potential to increase economic activity. The purpose of this study is to analyze the economic feasibility of road construction. The method used refers to Pd.T-15-2005-B. Components analyzed the economic feasibility aspects of road construction are based on differences in vehicle operating costs and time values arising from differences in transportation costs on the new road and existing road. The results of the study took the form of specific recommendations and were a solution to the need for work to be carried out by examining the extent to which the level of feasibility, especially from the economic and financial aspects. The economic indicators used are Net Present Value, Internal Rate of Return, and Benefit-Cost Ratio. The indicator provides a scale that compares the benefits and costs of each alternative proposed, specifically each indicator has different characteristics. In general, all of these indicators need to be examined to more clearly describe economic events during the planning period.