Sustainable Asset Valuation (SAVi) of the Contournement de Rabat, Morocco

The cumulative cost of accidents is highest in the Scenario 2: Reduced Maintenance Expenditure, with EUR 236 million in total, due to the reduction of planned maintenance, and in Scenario 5: Increase in Heavy Vehicle Traffic with EUR 226.8 million, due to the increase number of trucks and resulting degradation of the pavement. [...] The O&M costs are affected by several dynamics in the model, including the number of vehicles on the road, especially the heavy ones. [...] The economic and social costs of the increased number of accidents (+ EUR 0.16 / vehicle), are significantly higher than the cost savings realized by the lower maintenance, resulting in the IRR dropping to 3.14 per cent and the NPV decreasing by EUR 12 million. [...] In case of Scenario 3: Increase in Road Works, the significant increase of annual maintenance costs (+333.45 per cent) due to the inferior quality of the road and higher capital expenditures (+ EUR 77.17 million) decrease the IRR to 1.63 per cent and the NPV to EUR -132 million, as the cash flows are not large enough to cover the higher expenses. [...] Due to the heavy traffic, the value of time saved is lower and the accidents higher than in the case of Scenario 1: Business as Usual.