Shaanxi Roads Development Project

The cost estimate of the toll system was overestimated at appraisal, and the actual cost was about one-third the appraisal estimate. The main reasons for this difference include (i) the network-based toll system arrangement resulted in cancellation of unnecessary equipment; and (ii) the cost estimate was made in 2000 and procurement was conducted in 2004, during which time the availability of more advanced information technologies contributed to a lower and more competitive actual cost. Close follow-up on information technology development and the toll capacity demands means that a precise cost estimate of a toll system is now possible.