1. HDM-4 Applications

2. 2 Project Appraisal Project Formulation Maintenance Policy Optimization Road Works Programming Network Strategic Analysis Standards & Policies HDM-4 Applications

3. 3 Project Appraisal Concerned with the economic justification of a project defined by other means. Project types  New construction, upgrading  Reconstruction, resealing  Widening, lane addition Economic indicators  Net Present Value (NPV)  Internal Rate of Return (IRR)

4. 4 Gravel Road with 300 AADT Current Policy (Without Project) - Routine maintenance - Gravel resurfacing when thickness of gravel is less than 50mm - Grading every 182 days Proposed Project (With Project) - Upgrade the road to a paved standard - After upgrading, routine maintenance, patching 100% of the potholes, and resealing when damaged area > 20% Paving a Gravel Road Two Project Alternatives

5. 5 Roughness Progression

6. 6 Evaluation Period = 20 years Discount rate = 12.00 % ---- Present Values ---------------- Internal Construction & Road Net Rate of Length Maintenance User Total Present Return (km) Alt. Costs Costs Costs Value (%) 10.0 Without 0.18 5.10 5.28 With 1.75 3.10 4.85 0.43 15.5 Is the project economically justified? Comparison of Alternatives

7. 7 Net Economic Benefits

8. 8 Project Formulation Concerned with the economic comparison of project alternatives to better define the project. Compares many project alternatives, e.g.  Surface Types  Surface Thicknesses  Geometric standards  Timing of intervention Compares alternatives in terms of net benefits and agency costs (economic efficiency frontier graph)

9. 9 - Regravel and grading every 182 days - Upgrade in 2006 - Upgrade in 2007 - Upgrade in 2008 - Upgrade in 2009 Optimal Timing for Paving Gravel Road with 300 AADT Many Project Alternatives

10. 10 Which is the optimal alternative? Economic Efficiency Frontier

11. 11 Maintenance Policy Optimization Concerned with finding an optimal maintenance policy and funding for a given road class. User defines road classes in terms of condition and traffic A series of condition responsive road works are evaluated The alternative with highest NPV is identified along with the recurrent and capital resources needed to implement the alternative

12. 12 A Paved Road in Fair Condition - Reconstruction when roughness > 8.0 IRI - 40 mm overlay when roughness > 3.0 IRI Asphalt Road Maintenance - All include routine maintenance and patching 100% of potholes - 40 mm overlay when roughness > 4.0 IRI - 40 mm overlay when roughness > 5.0 IRI - 80 mm overlay when roughness > 3.0 IRI - 80 mm overlay when roughness > 4.0 IRI - 80 mm overlay when roughness > 5.0 IRI - 25 mm reseal when damaged area > 10% - 25 mm reseal when damaged area > 20% - 25 mm reseal when damaged area > 30%

13. 13 Roughness Progression

14. 14 Which is the optimal maintenance policy? Economic Efficiency Frontier

15. 15 Road Works Programming Objective: prioritise candidate road projects in each year within annual budget constraint Annual budgets obtained from strategic maintenance plan Concerned with the preparation of single or multi- year road work and expenditure programmes under specified budget constraints.

16. 16 Procedure Use specified standards to screen network & identify candidate projects, e.g.  road sections which exceed specified condition  roads with inadequate capacity  pavements which need strengthening  upgrade pavements with high traffic volumes Determine maintenance or improvement options Specify budget limits & periods Optimise using selected objective Produce optimal list of projects for budget period

17. 17 Evaluation of Road Sections Homogeneous Road Sections Good Condition Roads - Reseal 25 mm in 2006 - Reseal 25 mm in 2007 - Reseal 25 mm in 2008 - Reseal 25 mm in 2009 Fair Condition Roads - Overlay 40 mm in 2006 - Overlay 40 mm in 2007 - Overlay 40 mm in 2008 - Overlay 40 mm in 2009 - Overlay 80 mm in 2006 - Overlay 80 mm in 2007 - Overlay 80 mm in 2008 - Overlay 80 mm in 2009 Poor Condition Roads - Overlay 80 mm in 2006 - Overlay 80 mm in 2007 - Overlay 80 mm in 2008 - Overlay 80 mm in 2009 - Overlay 100 mm in 2006 - Overlay 100 mm in 2007 - Overlay 100 mm in 2008 - Overlay 100 mm in 2009

18. 18 Unconstrained Work Program

19. 19 Constrained Work Program

20. 20 Work Program Output 2003 2004 2005

21. 21 Network Strategy Analysis Objectives:  Determine budget allocations for road maintenance and improvement  Prepare for work programmes  Determine long term network performance  Assess impact on road users Concerned with the analysis of entire road networks to determine funding needs and/or to predict future performance under budget constraints

22. 22 Strategic Planning Forecast scenarios of revenues & available budget Assess current condition of assets Forecast traffic demands (from road network plan) Evaluate impact of strategies on performance and costs - using predictive model Optimize strategies under alternative budget scenarios - maximize NPV for each scenario Determine multi-year program allocations & performance

23. 23 Road Network GFP L M H A.C. Resource Constraints Optimal Program under Budgetary Constraints Program without Budgetary Constraints Optimization Module Strategic Planning Approach Matrix of Road Classes

24. 24 Diagnostic of the Network Condition

25. 25 Diagnostic of Road User Costs

26. 26 Diagnostic of Agency Costs

27. 27 Diagnostic of Road Classes

28. 28 Solution Catalog per Budget Level

29. 29 Consequences to Society

30. 30 Consequences to the Network

31. 31 Consequences to the Agency

32. 32 Consequences to the Users

33. 33 Support Definition of Budget Level

34. 34 Support for Allocation of Resources Maintenance Budget ($m) Primary Roads FlexibleGravel Secondary Roads FlexibleGravel Region North East South West 45.918.7 34.613.5 52.121.0 27.220.4 34.521.8 24.911.8 45.021.8 19.512.3

35. 35 Optimal Budget Requirements

36. 36 Support for Programming of Works

37. 37 Standards & Policies Road pricing  road use costs (to define fuel levies)  congestion charges  weight-distance charges Vehicle regulations  axle load limits  energy consumption, vehicle emissions & noise Engineering Standards  sustainable road network size  pavement design and maintenance standards Concerned with specific studies designed to define rational technical standards and vehicle policies

38. 38 400300200 What is the optimal traffic threshold for paving? Technical Standards

39. 39 How much road damage is caused by trucks? Vehicle Policies