Determination of the cost component in the social cost-benefit analysis of road projects in South Africa

Pienaar, Wessel (2021-05)

Article

ENGLISH ABSTRACT: The article deals with the preferred approach to determine the cost component in the social cost-benefit analysis (SCBA) of road projects in South Africa. The article is in four parts. The first part, the introduction, provides the reasons why investment cost should be identified as a single cost entity in the SCBA of a road project, regardless of the criteria according to which a project is adjudicated. The second part discusses the principles that guide the determination of the social opportunity costs (SOC) of road projects. The third part identifies the two items that form the cost component of the SCBA of road projects; the SOC of (i) the land required to accommodate the road reserve, and (ii) the construction of the road. The cost component of the latter is sub-divided into labour, plant, equipment, fuel, materials, and normal profit. The section also details a recommended procedure to convert the financial budget of a road construction project to an estimate of its SOC. The fourth section draws some conclusions from the study.

AFRIKAANSE OPSOMMING: Die artikel sit die werkwyse uiteen wat aanbeveel word om die kostekomponent in die sosiale koste-voordeel-ontleding (SKVO) van padprojekte in Suid-Afrika te bepaal. Die aanbieding is in vier dele. Die eerste deel is dieInleiding. Hierin word redes verskaf waarom investeringskoste as ʼn aparte koste-item bepaal moet word ongeag die kriteria waarvolgens ʼn projek beoordeel word. Die tweede deel word gewy aan die beginsels waarvolgens die sosiale geleentheidskoste (SGK) van ʼn padprojek bepaal word. In die derde deel word aangedui dat die kostekomponent in die SKVO van padprojekte uit twee items bestaan, naamlik die SGK van (i) die grond wat vir die padreserwe benodig word en (ii) die bou van die pad. Laasgenoemde word verdeelin die SGK van arbeid, aanleg, toerusting, brandstof, materiaal, en normale wins. Verder word ʼn werkswyse aanbeveel om ʼn finansiële projekbegroting na beraamde SGK om te skakel. Die gevolgtrekkings van die studie verskyn in die vierde dee

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/110529
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