Economic and financial feasibility analysis of Pekanbaru–Padang trans sumatera toll road, Padang–Sicincin section

Abstract

The 36.6 Km Padang – Sicincin toll road project is 1 of the Pekanbaru – Padang toll road section which has a total length of 254 Km. Feasibility analysis is conducted to determine the economic and financial perspective of the project. The data consist of primary and secondary data, which will be process to obtain values such as the movement of vehicle due to the existence of the toll road using the JICA 1 model, the project costs, and the project benefits including savings Vehicle Operating Cost (VOC) using the Pacific Consultant International (PCI) method, time value using the Jasa Marga method, and toll revenue. The result of economic analysis show that Padang – Sicincin toll road is economically feasible with value of BCR is 1.387 > 1, NPV Rp 2,378,624,928,805 > 0, and EIRR 7.35 % > 5.75 % (discount rate). And financial analysis show that Padang – Sicincin toll road is financially feasible with value of BCR is 1.478 > 1, NPV Rp 2,930,837,690,021 > 0, FIRR 7.85 % > 5.75 %, and PP 28 is 28 years 3 months < 40 years (planned project life).