Financial economic cost on gravel road maintenance: study using HDM-4

Abstract

This study demonstrates the economic benefit analysis from two alternative project on gravel road surface using HDM-4 to access the most appropriate project and maintenance standard both in term of pavement remaining life and also road user cost (RUC). The two alternative projects will be treated with different work standards. First Alterative namely “Without Project” will only be maintain the existing project with grading every six months, spot re-gravelling to replace 30% of material lost each year, and gravel resurfacing. Second Alternative namely “With Project” will be maintaining and upgrading the existing road pavement to bituminous pavement in year 2019 for section A001-01 and for section A001-02 in year 2020, by doing grading every six months and spot re-gravelling to replace 30% of material lost each year. In conclusion, from two proposed alternatives, although it requires more funds at earlier stages ‘with project’ alternative is the most appropriate project considering the number of maintenance followed, overall road performance, RUC, and the values of NVP and IRR.

Literature Review on Gravel Road Maintenance: Current State and Directions for Future Research

“…Low-cost tenders affect work execution on rural roads, and to attain the required performance standard, an increment of the annual maintenance funding is necessary and would reduce the life cycle cost ( 64 ). The initial investment costs of paved roads are higher than those of gravel roads; still, Suwarto and Fauziyah ( 68 ) recommended the former based on the life cycle maintenance cost, the RUC, the net present value (NPV), and the internal rate of return (IRR). Upgrading to an Otta seal surface has been found in some cases to be necessary to save maintenance costs, improve road users’ safety, improve driving efficiency, decrease environmental pollution, and promote economic development in local areas.…”