Module 5

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HIGHWAY ENGINEERING

18CV56

Dr. Smaranika Panda (M.S & PhD IITM)


Associate Professor
CMR Institute of Technology
Department of Civil Engineering
HE - 18CV56

Syllabus

Module 5:
• Highway Drainage: Significance and requirements,
Surface drainage system and design-Examples, sub
surface drainage system, design of filter materials, Types
of cross drainage structures, their choice and location

• Highway Economics: Highway user benefits, VOC using


charts only-Examples, Economic analysis - annual cost
method-Benefit Cost Ratio method-NPV-IRR methods-
Examples, Highway financing-BOT-BOOT concepts

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage
Significance of Highway Drainage
• An increase in moisture content causes decrease in strength or stability of a soil
mass
• The variation in soil strength with moisture content also depends on the soil type
and the mode of stress application.

Highway drainage is important because of the following reasons:-

1) Excess moisture in soil sub grade causes considerable lowering of its stability
the pavement is likely to fail due to sub grade failure
2) Increase in moisture cause reduction in strength of many pavement materials
like stabilized soil and WBM.
3) In some clayey soils variation in moisture content causes considerable changes
of sub grade. This sometimes contributes to pavement failure.
4) One of the most important causes of pavement failure by the formation of
waves and corrugations in flexible pavements is due to poor drainage.
5) Sustained contact of water with bituminous pavements causes failures due to
stripping of bitumen from aggregates like loosening or detachment of some of
the bituminous pavement layers and formation of pot holes.
Dr. Smaranika Panda, CMRIT
HE - 18CV56
Highway drainage
Significance of Highway Drainage

Highway drainage is important because of the following reasons (continued):-

6) The prime cause of failures in rigid pavements by mud pumping is due to the
presence of water in fine sub grade soil.

7) Excess water on shoulders and pavement edge causes considerable damage.

8) Excess moisture causes increase in weight and thus increase in stress and
simultaneous reduction in strength of the soil mass. This is one of the main
reasons of failure of earth slopes and embankment foundations.

9) In places where freezing temperatures are prevalent in winter, the presence of


water in the sub grade and a continuous supply of water from the ground
water can cause considerable damage to the pavement due in frost action.

10) Erosion of soil from top of un surfaced roads and slopes of embankment, cut
and hill side is also due to surface water.

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage

AC: Asphalt Concrete

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Introduction
Requirement of Highway Drainage

1. Surface water from the carriageway and shoulder should be drained off

2. Surface water from adjoining land should be drained off

3. Side drains should have sufficient capacity and longitudinal slope to carry away
all the water collected from the road way

4. Flow of surface water across road and shoulders and along slopes should not
cause erosion or cross ruts

5. Seepage and other sources of under ground water should be effectively


intercepted and drained by sub surface drainage systems

6. Highest level difference of Ground water and sub grade should be preferably
kept at least 1.2 m. If its less than 1.2 m it is desirable to lower the ground water
and provide sub surface drainage system

7. In water logging areas special precautions should be taken. More care if


detrimental salts are there or if flooding is prevalent
Dr. Smaranika Panda, CMRIT
HE - 18CV56
Highway drainage: Surface drainage
Components of surface drainage

The surface water from the road ways and adjacent lands need to be
collected and disposed off with the help of surface drainage system

Components are
1. Camber
2. Road side drains/ longitudinal drains
3. Cross drains Figure: Camber

Figure: Road side drains


Figure: Cross drains
HE - 18CV56
Highway drainage: Surface drainage
Cross slope or Camber
Camber of a pavement depends on:
• Type of pavement surface
• The amount of rainfall

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage: Surface drainage
Road Side drains:
• Generally open, unlined drains of trapezoidal shape with suitable cross
section and longitudinal slope.
• On plain terrain with embankments, longitudinal drains are provided on
both sides beyond the toe of the embankment.
• In sloping terrain, longitudinal drain is provided on one side only beyond
the toe of the embankment.
• In cuttings, drains are installed on either side of the formation.
• In cases of space restriction, drainage trenches of suitable depth and
cross section are dug and properly filled with layers of filter material.

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage: Surface drainage
Road Side drains:
Trenches with filter materials

Longitudinal drains

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Highway drainage: Surface drainage
Cross drains:
• At locations of natural valleys and streams, water flowing along the road
side drains are collected by cross drainage (CD) structures and disposed
off to the natural water course.
 CD structures may be culverts or small bridges.
 CD structures should extend to the full formation width.

Dr. Smaranika Panda, CMRIT


Surface drainage- Design
The surface drainage design can be divided into 2 phases:
i) Hydrologic analysis
ii) Hydraulic analysis

Hydrologic analysis: The objective to find the maximum quantity of water “Q” expected to
reach the drainage
Precipitation can be
i)Run off: part of precipitation that flows over surface
Factors effecting the run off
 Intensity or rate of rainfall
 Types of soil
 Moisture content in soil
 Topography of area
 Type of ground cover: Pavement surface, vegetation

ii) Portion of rain fall seeps inside as infiltrates and meets ground water

iii) Portion water evaporates Dr. Smaranika Panda, CMRIT


Surface drainage- Design
i)Hydrologic analysis: Estimation of Q flow of water into drain:

Q: quantity of water of reaching the drainage

Q= C i Ad

Where,
Q= Run off (m3/s)
C= Run off coefficient (expressed as ratio of run off to rate of rainfall)
i= intensity of rainfall (mm/s)
Ad = Drainage area in 1000 m2

How to find C, i , Ad ?????

Dr. Smaranika Panda, CMRIT


Surface drainage- Design
i)Hydrologic analysis

Dr. Smaranika Panda, CMRIT


Surface drainage- Design
i)Hydrologic analysis

Intensity of rainfall:
IDF curve: Intensity, Duration and frequency curve
Example :
If , T = 100 years
D= 2 hours
i= 75 mm/hr
So for same T,
D= 4 hours
i < 75 mm/hr

Dr. Smaranika Panda, CMRIT


Surface drainage- Design
i)Hydraulic analysis: To find Cross section and Longitudinal slope of drain

Dr. Smaranika Panda, CMRIT


Surface drainage- Design problems

VTU
Surface drainage- Design problems

VTU

Data Given:
1.5 d B 1.5 d
Q= 0.9 m3/s
B=1m
V = 1.2 m/s d
n = 0.02
I) Design of cross section B

Q = AV (1)
A= Q/V = 0.9/ 1.2 = 0.75 m2

Area of trapezium = 0.5 *d * ( B + 1.5 d+ B+1.5 d)


= 0.5 * d* (2B+ 3d)
Given B = 1
= d+ 1.5 d2 (2)
Dr. Smaranika Panda, CMRIT
Surface drainage- Design problems
Surface drainage- Design problems
• Equate equation 1 and 2 , Solve for d

Assume free board = 0.15 m

So depth of side drain = 0.45 m+ 0.15m = 0.6 m

Formula to solve quadratic equation

Dr. Smaranika Panda, CMRIT


Surface drainage- Design problems
Surface drainage- Design problems
II) Design of Longitudinal slope

Hydraulic Radius, R = Area 1.5 d=


Wetted Perimeter 0.675 m

Area of channel = 0.75 m2


Manning’s coefficient n given in question as = 0.02
d=0.45 m
=(0.6752 +0.452)
Wetted perimeter = 2.62 m B= 1m

Dr. Smaranika Panda, CMRIT


Surface drainage- Design problems
Surface drainage- Design problems
II) Design of Longitudinal slope

Dr. Smaranika Panda, CMRIT


Surface drainage- Design problems
Q 2) The maximum quantity of water expected in one of the open longitudinal drains on the
clayey soil is 0.625 m3/sec. Design the cross section and longitudinal slope of trapezoidal
drain assuming the bottom width of trapezoidal section to be 0.5 m & cross slope to be
1V:1.5H. The allowable velocity of flow in the drain is 0.8 m/sec & n= 0.022.
Surface drainage- Design problems
Solution)

Dr. Smaranika Panda, CMRIT


Highway drainage: HE - 18CV56

Sub Surface drainage


Changes in moisture content of subgrade – by fluctuations in
ground water table, seepage flow, percolation of rainwater and
movement of capillary water.

Methods of sub surface drainage


The methods of sub surface drainage are :-

• Lowering of water table

• Control of Seepage flow

• Control of capillary rise


– Granular capillary cut off
– Impermeable capillary cut-off

Dr. Smaranika Panda, CMRIT


Highway drainage: HE - 18CV56

Sub Surface drainage


Methods of sub surface drainage
Lowering of water table
• Highest level of WT should be 1.0 to 1.20 m
below the sub grade in order to avoid
excessive moisture content in the pavement
layers.
• In places of high WT, embankment height
should be 1.2 to 1.50m above ground level.
• In cases of permeable soil, construct
longitudinal drainage trenches with drain pipe
and filter sand.
• Wherever soil is less permeable, in addition to
longitudinal trench drains, transverse drains
are provided

Dr. Smaranika Panda, CMRIT Sub Surface drainage system with transverse drains
Highway drainage: HE - 18CV56

Sub Surface drainage


## Embankment or fill ???
An embankment refers to a volume of earthen material that is placed and
compacted for the purpose of raising the grade of a roadway (or railway) above
the level of the existing surrounding ground surface.

A fill refers to a volume of earthen material that is placed and compacted for the
purpose of filling in a hole or depression.

Highway is raised – Embankment

Why embankment is required?


1. To increase the sub grade height from ground water level
2. Satisfy the vertical alignment of the highway

Dr. Smaranika Panda, CMRIT


Highway drainage: HE - 18CV56

Sub Surface drainage


Methods of sub surface drainage
Control of Seepage flow
• Occurs when ground level as well as the impervious strata below are
sloping and water seeps by gravity .
• Seepage depends on permeability of the soil and the pressure gradient,
• If the seepage zone depth < (0.6 to 0.9 m) from sub grade level,
longitudinal drain in trench filled with filter material and clay seal
(impervious cap)may be provided to intercept the seepage flow.

Dr. Smaranika Panda, CMRIT


Highway drainage: HE - 18CV56

Sub Surface drainage


Methods of sub surface drainage
Control of capillary rise
• The capillary rise may be checked by providing a suitable capillary cut-off
by i) granular capillary cut-off and ii) by impermeable capillary cut-off.

Granular Capillary cut-off:- A layer of granular material is provided during the


construction of embankment as shown in fig below. The thickness of this layer should
be higher than the anticipated capillary rise within the granular layer

Impermeable capillary cut-off:- In this case, an impermeable membrane or a


bituminous layer is inserted in the place of granular blanket during the construction
of embankment.

Dr. Smaranika Panda, CMRIT


HE - 18CV56

Sub Surface drainage: Design of filter materials


 Filter materials are designed to have sufficient permeability and should be
able to resist the flowing of the fine foundation soil.
 Grain size distribution of filter material is based on permeability and
piping criteria.
The procedure involved are:
Step 1: On a grain size distribution chart, plot the grain size distribution curve
of the foundation soil.
Step 2: Find the value of D15 size of foundation material and plot a point of
particle size lower limit of D15 size of filter is 5*D15 of foundation to
represent. The condition of adequate permeability can be given by

Step 3: To full fill the condition of piping

Plot a point to represent upper limit of D15 size of filter which can be
5*D85 of foundation
Dr. Smaranika Panda, CMRIT
HE - 18CV56

Sub Surface drainage: Design of filter materials


Step 4: Dp= size of the perforation of drain pipe or the gap in the open
jointed pipes
D85 filter = 2*Dp.
The shaded area shown in figure below represents the region within which
the grain size distribution curve of satisfactory filter material should lie.

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Cross Drainage Structures

• Cross drainage structures are those structures which are provided


whenever streams have to cross the roadway facility.

• The water from the side drains is also often taken across these structures
in order to divert the water away from the road to a water course or a
valley.

Culverts
• A closed conduit placed under the embankment to carry water across
the roadway is termed as culverts.
• Culverts are the bridging structures of linear waterway span less than
about 6m.
• It is extensively used in road drainage system - more than 75% of the
cross-drainage structures are culverts.
• A culvert is more hydraulically efficient than minor bridge and discharge
through a culvert is more than a minor bridge
HE - 18CV56
Cross Drainage Structures

Functions of culverts:-
• Collection and transport of water across the road so as to not cause
damage to the road bank or the stream bed by scouring.
• To provide sufficient waterway to prevent heading up of water above the
road surface.
HE - 18CV56
Cross Drainage Structures
Types of Culvert
Pipe Culvert
• Used in non-perennial or at very small stream (Surface runoff from side
drain).
• Minimum of 50cm cover of soil should be provided so that traffic load
transmitted on pipe is of small intensity.
• Minimum diameter of pipe – 600mm.
• Pipes may be made of stone ware, concrete, RCC, etc. with standard sizes
of 0.5m, 0.75m, 1m, 1.25m and 2m in diameter.
• For large areas, multiple pipes are used joined to each other by joints
(length of a single pipe is limited to 2.5m.)
HE - 18CV56
Cross Drainage Structures
Types of Culvert
Box Culvert
• Suitable for large flow where the gravel movement may occur.
• Constructed where the nature of the soil below the foundation is not
suitable for individual footing under piers and abutments.
• The size of rectangular passage should not be less than 60cm*60cm.
• The height of such culverts rarely exceeds 3m.
• These culverts have larger life spans, greater hydraulic efficiency, superior
durability for worst environmental conditions and greater resistance to
damage due to debris.

Slab Culvert
• They are used in stream with gravel movement and debris flow.
• These culverts are used where the water opening is less than 15 m2 and
road crosses the waterway on a relatively high embankment.
• Free board of generally 0.5m is seen in this type of culvert thus, no
pressure flow occurs in this culvert.
HE - 18CV56
Cross Drainage Structures
Types of Culvert
Arch Culvert
• These culverts are suitable in high discharge areas and low debris flow
areas.
• These culverts are constructed when high fillings are involved and there is
heavier loading on the culvert.
• Span of each arch should be kept less than 3m.
HE - 18CV56
Cross Drainage Structures
Bridges
• A bridge is a structure constructed over water course to carry traffic over
it.
• Bridges are the structures having linear waterway span more than about
6m.
Types of Bridges
• On the basis of construction materials
• Steel bridges
• Concrete bridges
• Timber bridges, etc.
• On the basis of structural point of view
• Cantilever bridges
• Suspension bridges
• Moving bridges, etc.
• On the basis of span length
• Minor bridge (up to 30m)
• Major bridge (above 30m)
• Long bridge (above 120m)
HE - 18CV56
Cross Drainage Structures
Bridges
• On the basis of load carrying capacity
• Class 70 (Corresponding to class AA)
• Class 40 (Corresponding to class A)
• Class 30 (Corresponding to class B)

Parts of bridge - structurally divided into three parts :


1. Foundation:
• Since bridges take very heavy loading upon them, the foundations should
be carefully designed.
• If rocky strata are available for the abutments and piers at the location of
bridge site it becomes very easy to construct bridge
• Unavailability of rocky strata - caisson type piers or abutments may have
to be constructed in the foundation site location.
HE - 18CV56
Cross Drainage Structures
Bridges

2. Substructure:
• Substructure is that portion of the bridge which lies between the decking
and the foundation.
• The various components in the substructure are wing walls, piers,
abutments, etc.
• The choice of the type of abutment is done according to the site
condition concerning the soil classification which can be made of brick
masonry, stone masonry, PCC or RCC.

3. Superstructure:
• Superstructure is the portion which lies above the decking and can be
made of material like: timber, steel, RCC or pre-stressed cement concrete
HE - 18CV56
Cross Drainage Structures
Causeway
• Constructed instead of culverts on less important roads where the
maximum flow of depth does not exceed 1.5m which saves the
construction cost.
• During the flood, the water flows over the road and traffic on both sides
is stopped but as soon as the flood recedes, the traffic flow is resumed
• Bed slope of the causeway in estimating the span should not generally
exceed (4-5) % in order to prevent the vehicles from skidding and
overturning downstream.
• The depth of flow in most of the period of the year should not exceed
30cm.
There are two types of causeway:
1. Low level causeways/Flush Causeway/Irish Bridge of Ford:
• The causeway which is constructed at the bed level of the stream which
allows flood to pass over the road surface at any time is termed as low-
level causeway. It remains dry for most of the time.
HE - 18CV56
Cross Drainage Structures
Causeway
1. High level causeways/Submersible Causeway/Vented Causeway:
• The causeway which is provided with vents below to pass regular flow
under the road and flood across the road surface at any time is termed
as high-level causeways.
• It is constructed quite above the stream bed and is also termed as
submersible bridge.
HE - 18CV56
Cross Drainage Work

• When a natural drain crosses or intercepts an irrigation canal it becomes


necessary to construct some suitable structure to carry forward the canal
safely. As these works are constructed for crossing the drainage, they are
termed as cross drainage work. They are also called CD works.

It may be achieved in two ways:

1) The alignment of the irrigation canal should be changed to avoid its


crossing with the drain.

2) The drain itself may be diverted to the adjoining stream to avoid the
crossing. But in practice it may become impossible to avoid such a
crossing. Then there is no other alternative but to construct a structure to
carry the canal across the drain.

Dr. Smaranika Panda, CMRIT


HE - 18CV56
Cross drainage work
Types of Cross Drainage works:
• There are three types of cross drainage works structures:

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-1 HE - 18CV56

Canal Over Drainage


The canal water level is referred as full supply level (FSL) and natural drainage water
level is referred as high flood level (HFL)/ Maximum flood level (MFL).
Aqueduct (HFL is below the canal bed level)
• The canal bed is constructed much above the HFL
• The canal bed level is above the drainage/river bed level
• The canal full supply level is above the High flood level
• Both the water in canal and natural drain are under atmospheric pressure
• A canal trough is to be constructed in which canal water flows
• This canal trough is to be rested on number of piers.
• Sufficient vertical clearance between the water level in the drain to canal bed to
ensure free board
• Bridge carrying water
• Closing of canal top by road slab can provide access from one side of river to other.
It is for transportation purpose

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-1 HE - 18CV56

Canal Over Drainage

Aqueduct
Dr. Smaranika Panda, CMRIT
Cross drainage work- Type-1 HE - 18CV56

Canal Over Drainage


Syphon Aqueduct (canal bed level is below the highest flood level)

• In a syphon aqueduct, canal “water” is carrier above the drainage but the
high flood level (HFL) of drainage is above the canal bed. The drainage
water flows under syphonic action and there is no presence of
atmospheric pressure in the natural drain.

• The construction of the syphon aqueduct structure is such that, the


flooring of drain is depressed downwards by constructing a vertical drop
weir to discharge high flow drain water through the depressed concrete
floor.

• Syphonic aqueducts are more often constructed and better preferred than
simple than Aqueduct, though costlier.

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-1 HE - 18CV56

Canal Over Drainage


Aqueduct and Syphon Aqueduct

No vertical
clearance

Aqueduct Siphon Aqueduct

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-2 HE - 18CV56

Drainage over canal


Super Passage:

• Canal FSL is well below the River bed level


• In super passage, free board is provided
• Both flow subjected to atmospheric pressure
• The river water level is above and canal water level is below
• Super passage structure carries drainage above canal as the canal bed
level is below drainage bed level.
• The drainage trough is to be constructed at road level and drainage water
flows through this from upstream to downstream and the canal water
flows through the piers which are constructed below this drainage trough
as supports.
• It is reverse of aqueduct

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-2 HE - 18CV56

Drainage over canal


Canal Syphon:
• In a canal syphon, drainage is carried over canal similar to a super passage but the full
supply level of canal is above than the drainage trough. So the canal water flows under
syphonic action and there is no presence of atmospheric pressure in canal.

• When compared, super passage is more often preferred than canal Syphon because in
a canal Syphon, big disadvantage is that the canal water is under drainage trough so
any defective minerals or sediment deposited cannot be removed with ease like in the
case of a Syphon Aqueduct.

• Flooring of canal is depressed and ramp like structure is provided at upstream and
downstream to form syphonic action. This structure is a reverse of Syphon aqueduct.

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-2 HE - 18CV56

Drainage over canal


Supper passage and Canal Syphon

No vertical
clearance

Supper passage Canal Syphon

Dr. Smaranika Panda, CMRIT


Cross drainage work-Type 1 and 2 HE - 18CV56

Summary
Type-1 Canal Over Drainage

No vertical
clearance

Siphon Aqueduct
Aqueduct
Type-2 Drainage over canal

No vertical
clearance

Supper passage Canal Siphon


Dr. Smaranika Panda, CMRIT
Cross drainage work- Type-3 HE - 18CV56

Drainage into the canal


In type 3 the drainage water is to be mixed up with canal water, here the cost
of construction is less but silt clearance and maintenance of canal water
becomes really difficult. So the structures falling under this category are
constructed with utmost care.

Level Crossing:
When the bed level of canal is equal to the drainage bed level, then level
crossing is to be constructed. This consists of following steps:
1. Construction of weir to stop drainage water behind it
2. Construction of canal regulator across a canal
3. Construction of head regulator across a Drainage
Functioning of a level crossing:-
• In peak supply time of canal water parallel to drainage, both the regulators
are opened to clear the drainage water from that of canal for certain time
interval.
• Once the drainage is cleared, the head regulator is closed down. But, cross
regulator is always in open condition throughout year to supply canal water
continuously.
Dr. Smaranika Panda, CMRIT
Cross drainage work- Type-3 HE - 18CV56

Drainage into the canal


Canal inlets:
• In a canal inlet structure, the drainage water to be admitted into canal is very
less. The drainage is taken through the banks of a canal at inlet. And then this
drainage mixed with canal travels certain length of the canal, after which an
outlet is provided to create suction pressure and suck all the drainage solids,
disposing it to the watershed area nearby.

• There are many disadvantages in use of canal inlet structure, because the
drainage may pollute canal water and also the bank erosion may take place
causing the canal structure deteriorate so that maintenance costs are high.
Hence this type of structure is rarely constructed.

Dr. Smaranika Panda, CMRIT


Cross drainage work- Type-3 HE - 18CV56

Drainage into the canal

Dr. Smaranika Panda, CMRIT


Cross drainage work- HE - 18CV56

Selection of Site and Type of CD Work:


The selection of a particular type of cross drainage work and the selection of
its site depends upon various factors which can be summarized as follows:

• i. Nature of the foundation available at site.


• ii. Existing condition of a natural drain.
• iii. Bed levels of the irrigation canal and the drain.
• iv. Relative water levels of the canal and the drain.
• v. Magnitude of the drain and the irrigation canal.
• vi. Angle of crossing of the canal and the drain.
• vii. Other available constructional facilities.

Dr. Smaranika Panda, CMRIT


HE - 18CV56

Syllabus

Module 5:
• Highway Drainage: Significance and requirements,
Surface drainage system and design-Examples, sub
surface drainage system, design of filter materials, Types
of cross drainage structures, their choice and location

• Highway Economics: Highway user benefits, VOC using


charts only-Examples, Economic analysis - annual cost
method-Benefit Cost Ratio method-NPV-IRR methods-
Examples, Highway financing-BOT-BOOT concepts

Dr. Smaranika Panda, CMRIT


Highway Economics
Highway User Benefits:

The various benefits due to highway improvement may be


classified into two categories

 Quantifiable or tangible benefits in terms of market values

 Non quantifiable or intangible benefits.

Dr. Smaranika Panda, CMRIT


Highway Economics
Highway User Benefits:
Quantifiable or Tangible benefits:-
Various benefits which can be quantified include benefits to road user such as

1. Reduction in vehicle operation cost:- Saving in vehicle operation cost is due to


reduction in fuel and oil consumption and reduction in wear and tear of tyres
and other maintenance costs.
2. Reduction in travel time:- Saving in travel time is of direct consequence to
commercial vehicles due to possible increase in their trip length and earning
per unit time.
3. Value assigning due to reduction in travel time:- A part of the time saved may
be used for some useful purpose and thus a value can be assigned for it.
4. Reduction in accident rates:- This causes considerable benefits to the road
users in the form of cost of damages to vehicles and other properties, injuries
and loss of human life, delays to vehicles and passengers etc.
5. Enhancement in land value
6. Increase in employment opportunities
7. Related economic uplift

Dr. Smaranika Panda, CMRIT


Highway Economics
Highway User Benefits:

Non-Quantifiable benefits:-

• Reduction in fatigue & discomfort during travel.


• Increase in comfort and conveniences.
• Improvement in general ameneties, social and educational aspects.
• Development of recreational & medical services.
• Improved mobility of essential services, defense forces.
• Reduced suffering and pain of those involved in highway accidents.

Dr. Smaranika Panda, CMRIT


Factors affecting Vehicle Operation Cost (VOC)
The motor vehicle operation costs depend on several factors which may be grouped as given
below:
1) Cost dependent on time expressed as cost per year such as depreciation cost, registration
fee, insurance charges, garage rent, driver’s license salaries etc as applicable.
2) Cost depending on distance driven expressed as cost per vehicle-kilometer. The items which
may be included here are fuel, oil, tyres, maintenance and repairs etc
3) Cost dependent on speed include cost of fuel, oil and tyre per vehicle-km-time-cost of
vehicles, travel time value of passengers, etc.
4) Cost dependent on type of vehicle and its condition. Operation costs of larger vehicles are
comparatively higher. The operation cost of old vehicles maintained in poor condition is
also higher.
5) Cost dependent on road condition and geometrics such as types and conditions of
pavement surface, magnitude and length of gradients, radius and number of horizontal
curves etc. The vehicle operation cost increases with the unevenness index of pavement
surface. These factors are also affected by the topography of the region. On hill roads the
vehicle operation cost is higher than on plains.
6) Cost dependent on traffic factor such as congestion, volume to capacity ratio, flow
characteristic, composition of traffic etc.
7) Accident costs.
Dr. Smaranika Panda, CMRIT
Vehicle Operation Cost (VOC) Charts

Dr. Smaranika Panda, CMRIT


Vehicle Operation Cost (VOC) Charts

Dr. Smaranika Panda, CMRIT


Vehicle Operation Cost (VOC) Charts- Problems

Dr. Smaranika Panda, CMRIT


Vehicle Operation Cost (VOC) Charts- Problems

Dr. Smaranika Panda, CMRIT


Vehicle Operation Cost (VOC) Charts- Problems

Dr. Smaranika Panda, CMRIT


Economic analysis
Annual cost method:
• In this method the annual cost of each component of the highway
improvement project is calculated by multiplying the capital value with some
appropriate capital recovery which is calculated for the given life span.
• Total annual cost of an improvement is sum of all annual costs of capital
recovery(Cr) plus annual maintenance and road user costs.

Dr. Smaranika Panda, CMRIT


Annual cost method Problems

Dr. Smaranika Panda, CMRIT


Annual cost method Problems
CRF

Dr. Smaranika Panda, CMRIT


Annual cost method Problems

Hint: Salvage value after design life is to be deducted to get the actual cost
incurred, So here P = Total cost per km – Salvage value

Dr. Smaranika Panda, CMRIT


Annual cost method Problems

Dr. Smaranika Panda, CMRIT


Annual cost method Problems

Dr. Smaranika Panda, CMRIT


Annual cost method Problems

Dr. Smaranika Panda, CMRIT


Economic analysis

Benefit Cost Ratio Method:-The principle of this method is to assess the merit
of a particular scheme by comparing the annual benefits with the increase in
annual cost.
Benefit cost ratio = Annual benefits from improvement
Annual cost of the improvement
= (R-R1)
total annual cost of the project
Where,
R = Total annual road user cost for existing highway
R1 = Total annual road user cost for proposed highway improvement

• The benefit-cost ratios are determined between alternate proposals and


those plans which are not attractive are discarded.

• Then the benefit cost ratios for various increments of added investment are
computed to arrive at the best proposal. In order to justify the investment,
the ratio should be greater than 1.0
Dr. Smaranika Panda, CMRIT
Economic analysis
NPV methods (Net Present Value):
 Net present value (NPV) is the difference between the present value
of cash inflows and the present value of cash outflows over a period
of time.
 This method is based on the discounted cash flow technique (DCF).
 NPV is used in capital budgeting and investment planning to analyze
the profitability of a projected investment or project.
 In the net present value method, the cost and the benefits of the
individual years are discounted to the present value and compared
across various alternatives.
 Benefits are treated as positive and costs are treated as negative.
 Any project with a positive NPV is treated as acceptable. In comparing
more than one project, a project with the highest NPV is selected.

Dr. Smaranika Panda, CMRIT


Economic analysis

The Net Present Value (NPV) at the base year can be written as:

 Bi  Ci 
n
NPV  
i0  (1 r) 
n

Where, Bi is the benefit of the ith year, Ci is the cost of the ith year,
r is return rate and n is the number of years.

Dr. Smaranika Panda, CMRIT


Economic analysis
Internal Rate of return methods (IRR):

 Internal rate of return is that discount rate, for which the NPV value is zero.
This can be obtained by setting the value of NPV in the as zero, and solving
(by trial and error) for the value of r. If the rate of return thus calculated is
more than the market interest, then the project is adjudged to be
acceptable. n
 B  C 
NPV  
i0
 i

 (1  r )
i
n



0
 It is the discounted rate which makes the stream of cash flows equals zero.

There are number of variations for the determination of rate of return of a


highway improvement.

 In the rate of return method, the interest rate at which two alternative
solutions have equal annual cost is found.
 If the rate of return of all projects are known, the priority for the
improvement could be established.

Dr. Smaranika Panda, CMRIT


Economic analysis
Rate of return methods:

Dr. Smaranika Panda, CMRIT


Highway Financing
BOT( Build Operate Transfer):

• It is a form of project financing, wherein a private entity receives a


concession from the private or public sector to finance, design, construct,
and operate a facility stated in the concession contract.

• Under this scheme the private participant will not be owning the facility.
The private participant would be entitled to operate the facility for a specific
period during which the revenues from the operation would be shared
between the private participant and the Government or the Government
will be paid lease charges by the private participant.

• On completion of the specified time the facility will be transferred to the


Government.

Dr. Smaranika Panda, CMRIT


Highway Financing
BOT( Build Operate Transfer):
Some or even all of the following different parties could be involved in any BOT
project:

• The host government: Normally, the government is the initiator of the


infrastructure project and decides if the BOT model is appropriate to meet its
needs
• The concessionaire: The project sponsors who act as concessionaire create a
special purpose entity which is capitalized through their financial contributions.
• Lending banks: Most BOT project is funded to a big extent by commercial debt.
The bank will be expected to finance the project on “non-recourse” basis
meaning that it has recourse to the special purpose entity and all its assets for
the repayment of the debt.
• Other lenders: The special purpose entity might have other lenders such as
national or regional development banks
• Parties to the project contracts: Because the special purpose entity has only
limited workforce, it will subcontract a third party to perform its obligations
under the concession agreement.

Dr. Smaranika Panda, CMRIT


Highway Financing
BOOT( Build Own Operate & Transfer):

1. A BOOT structure differs from BOT in that the private entity owns the works.
2. It is a public-private partnership (PPP) project model in which a private
organization conducts a large development project under contract to a public-
sector partner, such as a government agency.
3. It is often seen as a way to develop a large public infrastructure project with
private funding.
4. The public-sector partner contracts with a private developer - typically a large
corporation or consortium of businesses with specific expertise - to design and
implement a large project.
5. The public-sector partner may provide limited funding or some other benefit
(such as tax exempt status) but the private-sector partner assumes the risks
associated with planning, constructing, operating and maintaining the project
for a specified time period. During that time, the developer charges customers
who use the infrastructure that's been built to realize a profit.
6. At the end of the specified period, the private-sector partner transfers
ownership to the funding organization, either freely or for an amount stipulated
in the original contract. Such contracts are typically long-term and may extend
to 40 or more years.

Dr. Smaranika Panda, CMRIT


Highway Financing
BOOT( Build Own Operate & Transfer):

Some advantages of BOOT projects are:


• Encourage private investment
• Inject new foreign capital to the country
• Transfer of technology
• Completing project within time frame and planned budget
• Providing additional financial source for other priority projects
• Releasing the burden on public budget for infrastructure
development

Dr. Smaranika Panda, CMRIT


Acknowledgement
• I would like to thank Prof. Divya V and Dr. Nipa Chanda for
sharing their lecture notes and publications.

Dr. Smaranika Panda, CMRIT


• https://www.civil.iitb.ac.in/~dhingra/ce754/C
E%20754.pdf

Dr. Smaranika Panda, CMRIT

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