A cost Benefit Analysis on Punjab Speedo Bus

INTRODUCTION:
Cost - benefit analysis (CBA) is the most widely used project evaluation method by both public
and private sectors for comparison of various projects according to their costs and benefits.The
estimated benefits calculating by the net present value. If the comparison will be among several
projects, the most beneficial project is chosen. If the decision will be made for one project, the
project is concluded worthwhile if the net benefits exceed the net costs. The purpose of using
CBA is different for public and private sectors. While the private sector uses the method only for
profit maximization, the public sector uses it to maximize social benefit. (Maria Borjesson et al,
2014)
Ex-post analysis in this case displaying both costs and benefits of the Punjab Speedo Bus (A bus
link network) as well as general methodological issues relating to transport modeling. An ex-post
analysis will not be used as a decision support, so it does not runthe risk of being biased due to a
strong political pressure, as is sometimes the case (Flyvbjerg et al., 2005).
Punjab Speedo Bus (A bus link network):
The Punjab speedo Bus has been initialy started in April 2016. According to the details, there
will be 14 routes (129km in route length) with buses arriving every 10 minutes. The fare
collection system will be automatic and the buses will be equipped with Bus Scheduling System.
The 200 feeder buses will also offer similar ease and accessibility as the Metro Bus service and will
operate within a 500 metre radius to connect the 27-km Metro bus route to the rest of Lahore. The
spokesperson said Daewoo Pakistan was spending Rs3 billion for the procurement of these
buses. He said that the Punjab Mass-transit Authority (PMA) would pay the company Rs165
(for big-sized buses) and Rs140 (for small-sized buses) per kilometre for operating these
buses. The company estimates that around 200,000 passengers will travel on the feeder routes
every day. The buses will be equipped with Automated Fare Collection and Bus Scheduling
System (AFC-BSS) and global positioning system (GPS) tracking devices.
Alternatives of the Project:
The three mian alternative was evaluated of the Punjab speedo bus in the ex-ante CBA.
1. An expansion of currnet bus routes or local transport expansion.
2. New commuter routes.
3. Plaanned improvemnts of the regional transportation in Lahore.