Optimal value-based highway management system | |
| Author | Dussadee Satirasetthavee |
| Call Number | AIT Diss. no.CM-07-04 |
| Subject(s) | Roads--Maintenance and repair Highway planning |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctoral of Engineering in Construction Engineering and Infrastructure Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. CM-07-04 |
| Abstract | Public transportation agencies annually invest large amount of budget to improve and maintain the serviceability of their highway systems in order to provide safety to their users. Providing a transparent management and detailed explanations on how the allocated budget is distributed to different projects would significantly enhance the performance of the public agencies. An efficient accounting system can help provide the overall performance of the budget allocation to both public sectors and taxpayers. Transactions and activities of public sector can then be accounted to full disclosure on their annual financial statements in a more consistent manner. The accrual accounting system has been adopted to substitute the cash accounting system by many governments around the world since the late 1900s. The reporting of the accrual accounting system places an emphasis on transactions of the changes in economic values rather than the cash movements (e.g. the recording of the depreciation of the assets in the financial statement). This research develops the framework of the optimal value-based pavement maintenance planning and its application on the strategic long-term highway maintenance activities according to financial statements in accordance with the accrual accounting system. Three components in the financial statement, which are the asset value and its depreciation of highway, the sale of highway maintenance activity, and the net income of highway maintenance activity, are investigated in details and adapted to be applied the proposed framework. The asset value and its depreciation of the accrual accounting system illustrate the total amount of economic values owned by an agency and the consumption of the future economic benefits of an asset. The sale of highway maintenance activity supports the applications of user-pay and private sector models for public sector service delivery. The sale of highway maintenance activity measures the outcome of the highway maintenance activity, which is directly related to the highway users' satisfaction. The net income for both profit-oriented enterprises and non-profit organizations or the change of the net debt in the public sector is used in the financial resource model for the public sector. The research framework is divided into four modules, which are (1) the data collection and data management module, (2) the components of the financial statement module, (3) the risk-adjusted discount rate module, and (4) the multi-year value-based optimization module. The collected relevant data are the average annual daily traffic volume, the historical highway physical condition, minimum acceptable levels and rehabilitation level, types of maintenance activities, and construction and maintenance costs. Selected components in the financial statement module are applied to improve the illustration of the consumption of the assets' future economic benefits and the loss of future economic benefits of highway assets through the linkage between the actual highway condition and each component of the financial statement. The financial statement components developed in the study are based on the Generally Accepted Accounting Principle (GAAP). The risk-adjusted discount rate module determines the suitable discount rate of highway maintenance projects since the return on investment of each maintenance project may vary. The suitable discount rate is used to convert monetary term within an analysis period to the present value. The last module, which is the multi-year value-based optimization module, is developed to apply the risk-adjusted return on investment based on the components of the financial statement in the highway maintenance planning for both the project and the network-level management. Case studies are presented in the research work to demonstrate the applicability of the proposed framework. In addition, the developed components helps improve the precision of the maintenance strategy selection and it is suitable for formulating the long-term maintenance planning. These values could also be used to support the decentralization of the central government since the district levels or local governments are obligated to assess their performance, which could be achieved through the appraisal values of their assets and the asset depreciation |
| Year | 2007 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. CM-07-04 |
| Type | Dissertation |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (CM) |
| Chairperson(s) | Chotchai Charoenngam; |
| Examination Committee(s) | Herabat, Pennapa;Hadikusumo, Bonaventura H. W.;Venkatesh, Sundar;Tighe, Susan L.; |
| Scholarship Donor(s) | Royal Thai Government; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2007 |