The subject of this paper is cost-benefit analysis of large investments in infrastructural projects in the first stage of project planning. This subject is analyzed with the help of the case study titled 'Comparative cost-benefit analysis of three waterway projects'. In this project, Decisio assessed project alternatives to three waterway projects in terms of costs and benefits. With the help of the information from this cost-benefit analysis the Dutch Ministry of Transport and Public Works will make a decision on which project(s) can go to the next phase of infrastructural project planning. An important conclusion from the research project with respect to cost-benefit analysis in early stages of project planning is that the amount of available (and usable) information is limited. This means that it is necessary to use index numbers and assumptions, and the results of the analyses need to be interpreted with caution. With the help of scenario and sensitivity analyses, the influence of endogenous and exogenous variables can be assessed. An advantage of carrying out cost-benefit analyses is that information is acquired about the contributions of different project parts in the total of costs and benefits. With the help of this information it is possible to compose optimal investment packages (project alternatives). An extra advantage of comparative cost-benefit analysis is that the outcomes are highly comparative, because much attention is given to the comparativeness of the inputs of the analysis. (A) For the covering abstract of the conference see ITRD E206647.
Abstract