Economic Evaluation Of Projects Research Articles

Application Analysis of Internal Rate of Return Capital Budgeting Method in Project Investment Decision-Making

Capital budgeting is crucial for a company to make the right investment decision. Among the typically used evaluation methods, the net present value and the internal rate of return are the mostly commonly used and preferred. This paper aims to focus on IRR, providing a comprehensive view of IRR that includes its basic characteristic, advantages and disadvantages when using it as the investment creation, as well as the improvements of its modified version MIRR, there will also be a comparison between the NPV and IRR to illustrate their difference. The study could enable the audience a comprehensive understanding of IRR in project appraisal, and whether to choose IRR or NPV as the investment criterion under different circumstances of the project or base on their own preferences. This research can provide more comprehensive and more realistic economic evaluation decision-making information, making the project economic evaluation more scientific.

Strategic Foresight and Agility: Upholding Sustainable Competitiveness Among SMEs During COVID-19 Pandemic

1. Arokodare, M. A. and Asikhia, O. U., 2020. Strategic Agility: Achieving Superior Organizational Performance through Strategic Foresight. Global Journal of Management and Business Research, 20(3), pp.7-16. https://doi.org/10.34257/gjmbravol20is3pg7 2. Auh, S. and Menguc, B., 2005. Balancing Exploration and Exploitation: The Moderating Role of Competitive Intensity. Journal of Business Research, 58(12), pp.1652-1661. https://doi.org/10.1016/j.jbusres.2004.11.007 3. Baskarada , S., Shrimpton, D., Ng, S., Cox, D. and Saritas, O., 2016. Learning through foresight. Foresight, 18(4), pp. 414–433. https://doi.org/10.1108/fs-09-2015-0045 4. Bereznoy, A., 2017. Corporate foresight in multinational business strategies. Foresight-Russia, 11(1), pp. 9–22.https://doi.org/10.17323/2500-2597.2017.1.9.22. 5. Brush, C. G., Greene, P. G. and Hart, M. M., 2001. From initial idea to unique advantage: The entrepreneurial challenge of constructing a resource base. Academy of Management Perspectives, 15(1), pp.64-78. https://doi.org/10.1109/emr.2002.1022409 6. Chen, W. H. and Chiang, A. H., 2011. Network agility as a trigger for enhancing firm performance: A case study of a high-tech firm implementing the mixed channel strategy. Industrial Marketing Management, 40(4), pp.643- 651. https://doi.org/10.1016/j.indmarman.2011.01.001 7. Chia, R., 2002. Essai: Time, duration and simultaneity: Rethinking process and change in organizational analysis. Organization Studies, 23(6), pp.863-868. 8. Economics and Development Resource Center (Asian Development Bank), Project Economic Evaluation Division Staff, 2003. Asian Development Outlook 2003. Oxford University Press, Incorporated. 9. Gerald, E., Obianuju, A. and Chukwunonso, N., 2020. Strategic agility and performance of small and medium enterprises in the phase of Covid-19 pandemic. International Journal of Financial, Accounting, and Management, 2(1), pp.41-50. https://doi.org/10.35912/ijfam.v2i1.163 10. Hashim, H. and Jumabhoy, A., 2017. Industry 4.0: SMEs are the vanguards in catalysing change. Insight, pp.33-34. 11. Kononiuk, A., 2017. Foresight in SME Companies. Journal of Machine Construction and Maintenance, 104, pp.109-115. 12. Kononiuk, Sacio-Szymanska and Gaspar, 2017. How do Companies Envisage the Future? Functional Foresight Approaches. Engineering Management in Production and Services, 9(4), pp.21-33. 13. Li, X., Chung, C., Goldsby, T. J. and Holsapple, C. W., 2008. A unified model of supply chain agility: The work‐ design perspective. The International Journal of Logistics Management, 19(3), pp. 408–435. https://doi.org/10.1108/09574090810919224 14. Lim, E. S. and Shyamala, N., 2007. Obstacles to innovation: evidence from Malaysian manufacturing firms. 15. Lin, J. (April 2020). Malaysia rolls out additional RM10 billion support for SMEs struggling due to Covid19 outbreak. Business Insiders. Retrieved 21 April 2020 from http://www.businessinsiders.my/malaysia 16. Mavengere, N. B. (2013). Information technology role in supply chain’s strategic agility. International Journal of Agile Systems and Management, 6(1), p. 7. https://doi.org/10.1504/ijasm.2013.052209 17. Mohtar, J. (April 2020). SMEs and Covid 19 – A ticking time bomb. The Malaysian Insight. Retrieved 20 April 2020 from https;//www.the malaysianinsight.com. 18. Muhyiddin, M. Y., 2020. Muhyiddin Mohd Yassin: Additional PRIHATIN SME Economic Stimulus Package (PRIHATIN SME+). [Online]. [Accessed 14 July 2021]. Available from: https://www.pmo.gov.my/wpcontent/uploads/2020/04/English-PM-Speech-PRIHATIN Plus-6-4-2020-905pm.pdf 19. Oyedijo, A., 2012. Strategic agility and competitive performance in the Nigerian telecommunication industry: An empirical investigation. American, International Journal of Contemporary Research, 2(3), pp.227-237. 20. Peter, M. K., and Jarratt, D. G., 2015. The practice of foresight in long-term planning. Technological Forecasting & Social Change, 101, pp.49-61. https://doi.org/10.1016/j.techfore.2013.12.004 21. Roberts, N. and Grover, V., 2012. Leveraging information technology infrastructure to facilitate a firm's customer agility and competitive activity: An empirical investigation. Journal of Management Information Systems, 28(4), pp.231-270. https://doi.org/10.2753/mis0742-1222280409 22. Rohrbeck, R., Battistella, C. and Huizingh, E., 2015. Corporate foresight: An emerging field with a rich tradition. Technological Forecasting and Social Change,101, pp.1-9. https://doi.org/10.1016/j.techfore.2015.11.002 23. Sardar, Z., 2010. Welcome to post-normal times. Futures, 42(5), pp.435-444. 24. Shin, H., Lee, J. N., Kim, D. and Rhim, H., 2015. Strategic agility of Korean small and medium enterprises and its influence on operational and firm performance. International Journal of Production Economics, 168, pp.181- 196. https://doi.org/10.1016/j.ijpe.2015.06.015 25. SME Annual Report (2018/19), Entreprenuership Driving SMEs, National Entrepenuer and SME Development Council (NESDC), Kuala Lumpur.

The Economic Evaluation of Projects as a Structuring Discipline of Learning Processes to Support Decision-Making in Sustainable Urban Transformations

This paper is based on the following research questions: i) In which way could the discipline Economic Evaluation of Projects contribute to conveying the sustainability concept in urban settings among master’s degree students? What are the methods/techniques that can support decision processes of sustainable urban transformation? In response to the two research questions, the paper proposes a multi-methodological framework as a design tool for students (future professionals) aimed at representing the decision problem from a sustainable planning perspective. Through a Problem-Based Learning approach based on a case study, the proposed framework considers: SWOT Analysis, Stakeholder Analysis (SA), Multicriteria Analysis (MCDA), Cash Flow Analysis (CFA), and the application of the Neighborhood Sustainability Assessment Tools (NSATools). The multi-methodological framework has been applied to an experimental teaching case study as part of the Economic Evaluation of Projects module demonstrating its effectiveness in terms of sustainable spatial planning and structuring of the decision process from a multi-actor perspective. Future directions of the research are aimed at tackling two major limitations of the multi-methodological framework as the need to closely reflect a real decision process through an iterative framework and the sometimes hard interpretation of some elements of urban sustainability.

Development of Economic Evaluation System for Building Project Based on Computer Technology

In order to effectively reduce the risk of construction project (CEP) and maximize the benefit of CEP, this study establishes the construction project economic evaluation (PEE) system by using computer technologies such as transfinite learning machine, artificial intelligence algorithm, and related fuzzy neural network and compares the coupling and sensitivity of different algorithms for PEE indicators, Through the demonstration of the comprehensive efficiency of the PEE system under the condition of computer technology, The results show that the index coupling and early warning sensitivity of the project economic evaluation system using the artificial intelligence algorithm of overlimit learning machine under computer technology are better than the previous traditional algorithms, which can realize the artificial intelligence of the economic evaluation system, reduce the investment cost of the project and improve the delivery time of the project, make the best balance between the technical application and economic operation of the project, and promote the sustainable development of the construction project.

Financing national scale energy projects in developing countries – An economy-wide evaluation of Ghana's Bui Dam

Large energy infrastructure can imply special financing arrangements between governments in developing economies and investors or lenders. These arrangements can lead to economy-wide and sector-specific impacts which need to be considered in the project economic evaluation. By considering the case of the Bui Dam in Ghana, we use a macroeconomic approach to determine how the economic performance of critical energy infrastructure manifests during the construction, financing and operation phases. The analysis uses an integrated modelling framework that combines a Computable General Equilibrium (CGE) model of Ghana with a water balance model of the Lower Volta River Basin. The results highlight the importance of including indirect and induced effects, in addition to the direct effects from project operation, as they influence the scale and temporal evolution of the economic impacts. The collateral from the infrastructure loan agreement consisting in cocoa exports to China nearly doubles the project's positive GDP impact and has a significant multiplier effect over urban and rural household income compared to a standard commercial loan. We finish with a discussion of how the proposed investment-oriented modelling framework can contribute to ex-ante strategic assessments of proposed energy infrastructure in developing countries.

Research on Teaching Reform of College Student Training Mode Based on Engineering Project Economic Evaluation of Driving Behavior with Internet of Vehicles Data

Practice is one of the essential teaching links in application-oriented professional teaching in engineering colleges. Reasonable design of practical teaching mode has an important influence on the development of scientific research activities and training of applied talents. In order to better experience the learning combined college student teaching mode, the analysis and mining based on the Internet of Vehicles data is taken as the research scene. Theoretical research and engineering verification of drivers’ driving behavior economy are carried out by using the learning method of theoretical research under the guidance of teachers and engineering practice under the guidance of enterprises. An economic evaluation model and energy saving potential calculation method based on fuzzy analytic hierarchy process are established, and the model is verified and improved in engineering practice. Among them, the analysis of personalized characteristics of driver behavior indicators shows that there are obvious differences in individual preference characteristics, generally manifested as fast acceleration and deceleration, low speed driving, gear mismatch. In addition, some drivers’ bad driving behavior has an energy saving potential of up to 4.98%. The results show that the combination of school theory research and enterprise engineering practice has positive effects on the development of students’ scientific research and the cultivation of applied talents that contribute to the development of enterprises.

Economic Evaluation Method of Incremental Distribution Network Project Based on Value Theory

In order to improve the weight calculation accuracy and overall evaluation accuracy of incremental distribution network project economic evaluation, a new incremental distribution network project economic evaluation method based on value theory is proposed in this paper. Firstly, based on the value theory, the economic characteristics of incremental distribution network are analyzed. Secondly, the economic benefits of the incremental distribution network project are calculated from the perspectives of DG owned operators and DG owned users. Finally, based on the calculation results of economic benefits, this paper constructs the evaluation index system, calculates the evaluation weight from both subjective and objective aspects, and finally completes the economic evaluation of incremental distribution network project. The experimental results show that compared with the traditional evaluation methods, this method can accurately calculate the evaluation weight, so as to obtain more accurate evaluation results.

A framework for measuring social value in infrastructure and built environment projects: an industry perspective

As the infrastructure and built environment sectors shift from traditional economic valuation towards more holistic approaches, projects are being designed, built and evaluated in new ways. An important emerging technique for the economic evaluation of projects is social value measurement. This paper sets out the foundations for the social value measurement techniques that underpin the methods and frameworks developed in central governments and by multilateral and international organisations and describes how these can be adapted to value the broader societal and environmental effects of infrastructure and built environment projects. The paper provides practical evidence of social value measurement in valuing heritage impacts for Stonehenge World Heritage Site as well as presenting a detailed account of the foundations of cost–benefit analysis as a tool for social value measurement and non-market valuation.

A Critique on the Book “Economic Evaluation of Projects (Advanced subjects)”

Engineering economics is one of the branches of economics. It is effective in implementing the goal of the economy, which is the optimal allocation of resources to unlimited human demands. One of the published books in the field of optimal allocation, planning, and policy-making is Economic Evaluation of Projects. The purpose of writing such a book is to teach the concepts needed by economic activists and their application in making the right decisions in order to prevent the waste of economic resources. The present book, due to various shortcomings such as lack of innovation, presentation of concepts in a scattered and out of order way and lack of a practical example that comprehensively covers the subject, lack of proper formulation of topics related to the advanced concept deals more with practical topics than advanced topics - and the inclusion of some general topics that have no place in advanced and specialized topics, failure to present the behavioral goals of each chapter, inconsistency of title and content from achieving explanation, description and proper description of the subject and purpose are other drawbacks of the present book. The book mentioned in this article has been reviewed in a critical-argumentative way, in the field of library studies, away from any prejudices and with fairness, and some parts have been researched and elaborated.

Research on economic evaluation of a bridge construction project based on FAHP

The economic evaluation of a bridge construction project is carried out by using FAHP, the economic factors are analyzed, and the evaluation criteria and decision criteria are established. According to the decision-making goal of economic evaluation, the evaluation index system composed of three first-class economic factors and eleven second-class economic factors is constructed. The economic situation of the project is evaluated through expert questionnaire survey, and the probability of occurrence is determined. This paper uses FAHP to make qualitative analysis and quantitative calculation on the factor index of a bridge construction project, and obtains the economic evaluation score and economic evaluation order of the first level economic factor evaluation index. It is known that the rationality of the project cost is the main economic factor. Through the calculation of the overall economic evaluation of the project, the overall economic evaluation result of the project is good. Therefore, fuzzy AHP is an effective method for economic evaluation of a bridge construction project, which can provide a basis for decision-making of a bridge construction project.

Forecast demand for use magnetic levitation transport

Background: The analysis carried out and the forecasted development prospects of the Vsevolozhsk municipal district show the high socio-economic importance of this territory for St. Petersburg and the Leningrad region. This territory is intensively developing, new residential zones are being formed on it, enterprises are opening, new jobs are being created, and recreational zones are being organized. Active housing construction in the municipalities "City of Vsevolozhsk" and "Zanevskoye rural settlement" is accompanied by a significant increase in the population. According to the forecast, in 2041 the population of the municipal formation "City of Vsevolozhsk" will exceed 100 thousand people, of the "Zanevsky rural settlement" - 180 thousand people. The population of the municipalities of St. Petersburg included in the gravitational zone of the maglev transport line in the direction "Vsevolozhsk - St. Petersburg", in 2041 will increase by 1.4 times compared to 2015, amounting to 520 thousand people. The listed tendencies indicate that in the future the intensity of traffic flows will grow and the demand for the use of maglev passenger transport will increase.
 Aim: Putting into operation lines of magneto-transport vehicles in places of concentration of growing passenger flows, which will help to reduce travel time, meet freight requirements, improve the quality and increase travel safety when driving along dedicated lanes.
 Method: We have described the existing transport service system in Vsevolozhsk. The survey of passenger traffic on bus routes operating between Vsevolozhsk and St. Petersburg was carried out by two methods during the periods of morning and evening peaks, as well as during the inter-peak period: visual method and tabular method. The article gives a characteristic of the uneven distribution of passenger traffic at the Ladozhskaya metro station and the socio-economic characteristics of the pedestrian accessibility zone of stopping points, identifies the maximum passenger traffic and the need for rolling stock.
 Results: As the basis for the development of the transport system of urban agglomerations, it is proposed to use magnetolithic transport. For its operation, a special high-speed infrastructure and a new rolling stock are needed. In other words, there is a need for the development and economic evaluation of projects for the construction and operation of magnetolithic transport lines in the formation and implementation of transport strategies of modern urban agglomerations.

Cost of Equity of Coal-Fired Power Generation Projects in Poland: Its Importance for the Management of Decision-Making Process

Our knowledge of discount rates plays an important role both in the discounted cash flow decision-making process and in the later phases of a project’s lifetime. It is useful than both for management and cash-flow monitoring purposes at operating stages. Investors putting money into power generation projects expect an appropriate rate of return to compensate them for a minimum acceptable real return available in the market (risk-free rate of interest) and the project’s specific risk. Due to its essential nature in the financial and economic evaluation of projects (it is the only parameter that reflects the risk), it is reasonable to assume that investors would also be interested in constituent components of that indicator. The discount rate is one parameter in the discounted cash flow analysis that takes into account the risk of a venture. Further, the previous research in this area has focused mainly on the dimension of this variable, and the structure of this parameter has not been dealt with any other studies. The proposed idea of this study met the expectations of the industry—it aimed to present a typical project implemented in the energy industry, a relatively simple methodology that allowed estimating the components within the cost of equity capital of the enterprise. In the power generation sector, one can find various types of discount rates—assessed for multiple technologies, at different development stages, and expressed differently. Owing to the know-how and decades-long experience, coal-fired power projects’ remarks may be a good benchmark for alternative low carbon technologies. That is why, in this work, a discount rate for valuing investment in new coal-fired power projects was evaluated. This assessment was made on the “bare-bones” assumption, meaning evaluations at 100% equity, after-tax, in constant (real) currency units. The analysis of the discount rate structure was performed by applying the procedure of the classical sensitivity analysis having the accuracy of key input parameters. Finally, the risk factors within the risk-adjusted discount rate were calculated. The obtained results showed the importance of individual risk factors within the risk-adjusted discount rate used in coal energy projects, which would enable a more pragmatic approach to controlling this parameter by decision-makers and understanding the risk.

Evaluation of Railway Network Development Projects Considering Economic Conditions

The article focuses on theoretical and practical issues of relationship between demand for rail cargo transportation and development of transit and traffic capacity of the railway network. The current situation of public railway transport in the transport system of Russia is described. The dynamics of the main volume indicators of the transport complex over several years is analyzed, the key cargo groups, which account for more than 75 % of the traffic volume, are identified in the structure of traffic volumes. An algorithm is proposed for economic evaluation of railway infrastructure development projects in conjunction with the dynamics of development of commodity markets. The relationship and nature of mutual influence of the elements of the algorithm for economic evaluation of railway network development projects are identified. Examples of currently implemented integrated investment projects of JSC Russian Railways aimed at attracting perspective cargo volumes are commented. The objective of the article is to develop methodological tools for economic evaluation of projects for developing the transit and traffic capacity of a railway network in the face of changing directions and volumes of cargo flows, considering the dynamics of development of external and internal commodity markets. In accordance with the objective, the main tasks comprise comparative assessment of the indicators used in domestic practice, used to determine the impact of market conditions as compared with indicators used by leading foreign companies for these purposes; assessment of the value of integrated investment projects for development of transit and traffic capacity (at the example of Russian railway network) under the conditions of dynamically developing external and internal commodity markets; development of an algorithm for evaluating railway infrastructure development projects to ensure a higher level of quality of transport services with the aim of assessing mutual influence of individual project parameters and their balance, depending on the dynamics of external and domestic product markets, as well as on the need to attract investment resources. Empirical and theoretical methods, such as collecting and analyzing information, deduction, modelling, comparison, technical and economic calculations, an economic and statistical method, were used to implement the goals and objectives set in the article. It is concluded that it is necessary to consider dynamically changing conditions of commodity markets when assessing the prospects for development of the railway network.

Justification Of the need for the Construction оf the Maglev Route St. Petersburg – Sertolovo.

Background: According to experts, the most popular form of urban public transport for urban agglomerations is radio-magnetic transport. The scientific literature notes that the development of magnetic transport can be a real answer to the growing demands of society on the quality and speed of movement of passengers in the era of digitalization of the economy [1]. In connection with new trends in the evolution of transport systems, the literature substantiates the need to use fundamentally new modes of transport, and also identifies the restrictions imposed on further improvement of the wheel-rail technology.
 Aim: Putting into operation lines of magneto-transport vehicles in places of concentration of growing passenger flows, which will help to reduce travel time, meet freight requirements, improve the quality and increase travel safety when driving along dedicated lanes.
 Method: The article identifies the factors that determine the demand for the use of magnetolithic transport. Demand for population movement has been predicted using the example of the St. Petersburg - Sertolovo magnetic transport line for the long term until 2030, taking into account plans for the socio-economic and urban development of the gravity zone. The article predicts the population of the gravity zone of the projected line of magneto-gravitational transport until 2030.
 Results: As the basis for the development of the transport system of urban agglomerations, it is proposed to use magnetolithic transport. For its operation, a special high-speed infrastructure and a new rolling stock are needed. The projects for the construction and operation of MLT lines are extremely long-term in nature, significantly affect the development of urban transport, and therefore their implementation is possible only within the framework of strategic management of the development of urban transport systems.In other words, there is a need for the development and economic evaluation of projects for the construction and operation of magnetolithic transport lines in the formation and implementation of transport strategies of modern urban agglomerations.

Occurrences in Czech Railway Infrastructure and their Relation to the Economic Efficiency of Investments

The paper focuses on the evaluation of impacts of occurrences in the Czech railway transport system on social and economic benefits and financial efficiency of investment projects in railway infrastructure. The evaluation of financial and economic efficiency of investment projects financed from the funds of the European Union is based on the Guide to Cost-Benefit Analysis of Investment Projects by European Commission from 2014. In the Czech Republic, this Guide has been complemented, for the purposes of economic and financial evaluation of projects in transport infrastructure, by the Departmental Guideline for the Evaluation of Economic Effectiveness of Transport Construction Projects by the Ministry of Transport of the Czech Republic which specifies economic evaluation of projects of roads and highways, railways and waterways important for traffic. The Departmental Guideline defines benefits which can be included into the economic evaluation, e.g. savings in the operation costs, the decrease in costs connected with accidents, the decrease in costs connected with the travel time or negative externalities usually related to impacts on the environment. However, in the case of the railway infrastructure, benefits connected to the increase in safety and fluency of the transport due to introducing security and information systems are not taken into account, even if these investments form a standard part of most railway infrastructure investment projects. The objective of the paper is to identify both the number and the structure of railways occurrences, which can influence effective functioning of railway transport for the purpose of their subsequent research in order to take into account decrease in their use in economic analysis. The methodology of the research is based on detailed analysis of individual occurrences which happened on Czech railways during past three years. The output of this paper provides a detailed statistic of occurrences including damage caused and propose recommendations for the next steps which should lead to the quantification of relevant benefits.

A multicriteria approach to identify the Highest and Best Use for historical buildings

Abstract The cultural heritage conservation is essential to preserve the memory of monuments, places and territories and to ensure their transmission to the future. This can be pursued through continuous and careful maintenance, which, however, is lost when a place loses its function and becomes prey of neglect and decay. It is easy to understand how fundamental is to assign compatible intended use to safeguard the historical goods. From this perspective, the research proposes an innovative and economic evaluation model in order to identify the Highest and the Best Use (HBU) for the historical buildings that would take into account both their social, cultural and economic identity and the preservation of their integrity and original image. The choice of HBU requires a rational study approach that can employ the Multicriteria Decisional Methods (MCDM). These Methods could allow us to consider not only the financial performance of the restoration and enhancement intervention, but also the wide variety of the effects that it will generate on the territory, by involving the community in the new functions, the employment opportunities and the project's aptitude to encourage the cultural growth, by respecting the historical and architectural values. According to this framework, the research outlines an economic evaluation protocol that implements the Analytic Hierarchy Process (AHP), a hierarchical multicriteria technique consisting in breaking down the complex decision issues into fundamental constituent elements based on multiple criteria and sub-criteria. The protocol consists in a sequence of logical and operational steps that starts from the preliminary selection of possible functional destinations among those technically feasible, urbanistically permissible, economically viable and historical-architecturally compatible; the next definition of evaluation criteria and sub-criteria; the assignment of the weights to the criteria and the scores to the use options; then the implementation of hierarchical analysis algorithms, which return the final ranking of alternatives and thus outline the Highest and the Best Use for the building. Novelty elements concern the rationalization of the phases, the selection of the criteria evaluation according to the international references for the disciplines of the conservation of cultural heritage and the economic evaluation of projects, and finally the formalization of calculation schemes. The model is validated on a real case study: the monumental Palazzo Genovese in Salerno (Italy). Here the goal of researching HBU meets the need to remove the historic building from the current state of abandonment or underuse and to give it back to the citizens, by ensuring the use and the constant care and maintenance. The application demonstrates the practical usefulness of the protocol in decision-making processes for the re-use of architecture in order to maximize the economic benefits and, at the same time, to safeguard its historical and architectural values.

Justification of an approach to an economic assessment of projects development of technogenic mineral objects

With the gradual reduction of the quality of mineral resources and the deterioration of mining and geological conditions of mining operations there is a need to revitalize the mining companies withing the Russian Federation to engage in the processing of the existing technogenic resources. This problem is particularly relevant for the Northern regions, where a significant amount of mining waste has accumulated as a result of long-term mining. This involves increasing the investment attractiveness of the waste management of mining projects through the development of methodologies for the economic evaluation of projects. The purpose of this research is to develop a methodological approach for economic evaluations during the development process of technogenic mineral processing facilities and mining waste projects.The considered research methods include: justification of key elements of the evaluation of project developments and technological fields of waste processing, compare the types of projects, the rationale for the selection of project solutions to the socio-environmental projects and organizational results.The study results propose a methodology for deciding on the implementation of development projects of technogenic deposits and recycling, based on the flexible use of the criterion of net present value (NPV) to evaluate the effectiveness of the project.

Managing production profile uncertainties in P field LLP project economic evaluation using factorial design

P field is a Gas field in Mahakam area, East Kalimantan, Indonesia. Having been produced since 1999, its production has decreased and is forecasted to fall below economical cut-off starting at the end of 2020. Low Low Pressure (LLP) project may extend the life of the field. In 2016, An economic evaluation has been performed for LLP pilot project on Platform 4 and Platform 5 but didn’t properly integrate the uncertanties behind the production profile. This study evaluates a new approach to perform economic evaluation for LLP project on the remaining platforms. The new method develops a model from platform 2 data to capture production profile uncertainties by using facto- rial design. Monte Carlo simulation is applied to the model to obtain a production profile range. Economic analysis is then performed to calculate Net Pressent Value (NPV), Internal Rate of Return (IRR) and Payout Time (POT). Eventually, the new method conclude that the LLP project on Platform 2 will generate cumulative cash flow be- tween 32.9 to 60.4 MUSD (NPV0) or 11.7 to 21.8 MUSD (NPV11) with IRR ranging between 27 to 34%, therefore it is economical. Information gathered from Platform 2 evaluation hinted that only Platform 1 has the potential to be economical. Additional work is required to have a complete economic evalution, however, the management should decide go on with the platform 2 LLP project.

New Methodology for Railway Infrastructure Evaluation and its Impact

The paper is focused on the evaluation of the economic efficiency of investment projects in the area of railway structures in the Czech Republic. The economic evaluation of projects of the transport structures including the railway structures has in recent years undergone through significant changes resulting into the final form of the united resort methodology of the Ministry of Transport of the Czech Republic, which from the methodological point of view covers the economic evaluation of all projects of transport structures. The main objective of the paper is to evaluate the impact of methodological changes in the financial and the economic evaluation of projects of railway structures. New methodological approaches can have the influence on economic results of monitored investments. The attention is paid to all aspects influencing the economic efficiency of the projects, especially the issues of investment and operational costs, costs for the trains operation and whole society benefits in the form of time savings, savings resulting from externalities a savings resulting from increased safety on railway are solved. From the methodological point of view, the paper is focused on the comparison of the approach to economic evaluation according to the previous methodologies specialised exactly on projects in the railway infrastructure with the approach according to the new methodology. The new resort methodology unifies specific parts of the analysis for all types of transport constructions and at the same time defines partial methodological approaches intended for particular transport modes. Within the previous methodologies the “transition methodology” valid from the half of 2016 to the acceptation of new resort methodology in November 2017 is also considered. In the frame of research works, the identified differences are also analysed. Impacts of methodological changes are presented on the case study of the model railway construction, from which the significant decrease of values of criterial indicators declaring lower economic efficiency is evident. Impacts are solved individually for particular parts of the financial and the economic analysis. From the case study is evident that all aspects included in the economic evaluation result to the decrease of the total economic efficiency of the investment project on the railway connected with the changes in methodology, however the changes in travel time savings and savings on externalities are the most important.

Cost benefit analysis of bicycle infrastructure

In the past, there were no examples of Cost-Benefit Analiyee (CBA) projects for cycling roads in the economic evaluation of projects in Serbia (Prefeasibility study in the General Project, or the Feasibility Study in the Conceptual Project). In the last decade with the awareness of the benefits of cycling, as well as the trends coming from Europe, especially projects funded by EU funds, there are a number of projects in this field, primarily on EuroVelo routes, as well as in cities. The obvious lack of adequate literature in this field is due to the writing of this paper. Through the review of the relevant literature in this field, the cost-benefit models will be analyzed. After the analysis of the existing literature, it will work on making recommendations for the preparation of Feasibility Studies for bicycle routes and bicycle infrastructure in Serbia.