Central Region - Emerging Kerala

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$LATEX PROCESSING INDUSTRY 1 ... - Emerging Kerala$

The package II is detailed here in this profile. The Package II- <strong>Central</strong> region includes nine road stretches selected for rehabilitation schemes in Palakkad, Thrissur, Ernakulam and Idukki districts comprising 158.90 kms of road stretches. This package covers the central circle of PWD and Palakkad district. This includes SHs of 133.60 kms and Major District Roads of 25.30 kms. The roads are presented in the table given below. S. No 1 2 3 4 Road Name Start Junction End Junction Type Road Length (km) Vadakkanchery – Pollachi Road Kodungallur – Shronur Road THrissur – Mannuthy Road Ernakulam – Thekkady Road Approx Total Cost (Milions) Mangalam Pollchi SH-58 39.20 429.20 Patturaikkai Jn Cochin Bridge (Cheruthuruth y) SH-22 29.60 672.80 Thrissur Mannuthy MDR 5.30 162.80 Muvattupuzha Parakadavu SH-41 12.00 147.90 5 Muvattupuzha – Theni Road Parumankandam Kizhakkekara SH-43 16.00 241.30 6 7 8 9 UC College – Thadikkakadavu Bridge – Aduvassery – Upto Paravoor – Athani airport road East AKdungalur Temple – Elookkara – Aluppuram – Pathalam – Upto container road Koothattukulam – Pandappilly road Muvattupuzha – Theni Road Economic Analysis UC College East Kadungallur Temple Athani airport road MDR 5.40 158.35 Pathalam MDR 7.50 99.00 Koothattukulam Pandappally MDR 7.10 133.90 Perumankandam Paramada SH-43 36.80 341.70 Total Length 158.90 2386.95 Economic analysis has been carried out for the finalised contract packages as well as for the entire packages together. The cost benefit analysis is carried out by using the discounted cash flow (DCF) technique to obtain the Economic internal rate of return (EIRR), economic net present value (ENPV) for the proposed investments linked with the project. This is followed by a sensitivity analysis carried out by increasing or decreasing the critical factors affecting the cost and benefit streams of the proposed project, in order to ascertain their effect on the economic feasibility indicators i.e. ENPV, EIRR. Page 4 of 6 PPa 3
The result of economic analysis and sensitivity analysis are summarised in the below table. EIRR (%) ENPV at 12% discount (Rs. Million) FYRR VOC VOC & VOC VOC & VOC VOC & S. No Sensitivity Scenario savings only as Time cost savings savings only as Time cost savings savings only as Time cost savings Project benefit together as Project benefit Project benefit together as Project benefit Project benefit together as Project benefit 1 Normal Scenario 20.62% 37.41% 887.52 3272.15 9.51% 18.46% 2 15% increase in Agency cost 16.65% 32.17% 539.56 2924.20 7.93% 15.38% scenario 3 15% decrease to Project benefits 15.80% 31.06% 362.06 2269.77 7.61% 14.77% 4 15% increase in Agency cost and 15% decrease to Project benefits simultaneously 12.13% 26.34% 14.10 1921.81 6.34% 12.31% The project package is found economically feasible for the proposed improvement, considering their positive values of feasibility criteria (EIRR, FYRR and ENPV) both at normal scenario and at worst scenario under sensitivity analysis. In the normal scenario the project improvement has 37.40% EIRR and Rs. 3272 Million ENPV at 12% discount rate, considering all the project benefits, while in the worst case scenario, the EIRR 26.30% and ENPV of Rs. 1922 Million at 12% discount rate for 10 years operation period. First Year Rate of Return (FYRR)is worked out be 9.50% for Vehicle Operating Cost (VOC) benefits alone and 18.50% for all benefits, in the normal scenario. Financial Analysis & Proposed Funding Mechanism Financial analysis has been carried done with a view to evaluate the various ways of financing the packages. The steps involved in financial analysis are as follows: The total capital cost of the projects included in the package has been converted to total Landed cost Various ways of financing the package ( Own Fund, Loans, Build Own Operate) are evaluated The cash flows for each of the financing options is then estimated The revenues likely to be generated by the project by way of toll or annuity or any other Page 5 of 6 PPa 4
Page 1 and 2: State Road Improvement Project Reha
Page 3: Strengthen ing of the existing pave

Central Region - Emerging Kerala

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