Select Committee on Environment, Transport and Regional Affairs Appendices to the Minutes of Evidence


Annex 1

FULL COST BENEFIT APPRAISAL

  The typical format of a full cost benefit appraisal is shown below, using illustrative figures.


COSTS
Net present value
(£ million)

A.Capital Costs
(70)
B.Total Operating Costs
(35)

C.Total Costs (A + B)
(105)

BENEFITS
Transport User Benefits
D.Time Savings
40
E.Car Operating Cost Savings
6
F.Bus Operating Cost Savings
15
G.User Accident Cost Savings
5
Transport Non-User Benefits
H.Road User Time and Cost Savings
80
I.Non-user Accident Cost Savings
2
J.Mobility Impaired Benefits
0.2
K.Disbenefits during Construction
(0.2)
L.Highway Works Savings
0.5
M.Regeneration/Employment Benefits
4
N.Pollution Reduction Benefits
2
O.Induced Traffic Effects
(6)

P.Total Benefits (sum of D to O)
148

Q.Net Benefits (P-C)
43

R.Full Benefit-Cost Ratio (P/C)
1.41

S.Operating revenue
40

  Operating revenue (line S) should normally be greater than operating costs (line B) if schemes are to be funded.


 
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