COST BENEFIT ANALYSIS FOR ROAD INFRASTRUCTURE PROJECTS. TRAFFIC - A BASIC ELEMENT
COST BENEFIT ANALYSIS FOR ROAD INFRASTRUCTURE PROJECTS. TRAFFIC - A BASIC ELEMENT

Summary/Abstract: Cost-benefit analysis is essential in risk management. The decision to invest in risk mitigation measures should be made only using cost-benefit analysis. In the cost benefit analysis, analysts compare costs with benefits (depending on the results of risk analysis), and then take the best decision. To estimate the costs and benefits of a project we compare the costs and benefits of two scenarios: Scenario "With Project", where the project will be completed, and the scenario "Without project", which describes the future development where the project is not implemented. Cost-benefit analysis includes both, financial analysis and socio-economic analysis. An important role has the traffic estimated for the future. The paper presents an approach concerning a traffic study for a project for modernization of Jimbolia town streets.

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