Abstract
Paper builds on previous research of the authors into the evaluation of economic efficiency of transport infrastructure projects evaluated by the economic efficiency ratio - NPV, IRR and BCR. Values of indicators and subsequent outputs of the sensitivity analysis show extremely favourable values in some cases. The authors dealt with the analysis of these indicators down to the level of the input variables and examined which inputs have a larger share of these extreme values. NCF for the calculation of above mentioned ratios is created by benefits that arise as the difference between zero and investment options of the project (savings in travel and operating costs, savings in travel time costs, reduction in accident costs and savings in exogenous costs) as well as total agency costs. Savings in travel time costs which contribute to the overall utility of projects by more than 70% appear to be the most important benefits in the long term horizon. This is the reason why this benefit emphasized. The outcome of the article has resulted how the particular basic variables contributed to the total robustness of economic efficiency of these project.
Highlights
In the Czech Republic, as well as in other economically developed countries, the construction sector is one of the main pillars ensuring the development of the economy
Net cash flow (NCF) for the calculation of above mentioned ratios is created by benefits that arise as the difference between zero and investment options of the project as well as total agency costs
Frequency of projects in interval of total agency costs and/or benefits of switching values and their BCR are shown in Table 1 and Table 2
Summary
In the Czech Republic, as well as in other economically developed countries, the construction sector is one of the main pillars ensuring the development of the economy. Construction, and related investment construction, contributes in the long term to the balanced development of the territory, including the effect on the environment, creating the conditions for business in other economic sectors and industries, maintaining social stability. According to statistical data [1] in 2016 there was an unexpected decline in construction production; civil engineering was the annual decrease of 16 %. The main cause of the unfavourable situation of the Czech construction is a long time licensing structures. On it depends the recovery of investment construction in the coming years in all areas, but especially in the area of infrastructure and housing construction
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