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The Journal of the Trachtenberg School of Public Policy and Public Administration at The George Washington University

Abstract

This cost-benefit analysis studies several significant costs and benefits of the Dulles Corridor Metrorail Project. The two major costs of construction and operating expenses and the two major benefits of passenger benefits and car miles saved have been used to analyze the project over a 30-year period starting in 2009, to include four years of construction followed by 26 years of Metro operation. The project was determined to have a net cost of $1.78 billion. With the exception of the first four years, in which construction costs would be incurred but the other three costs and benefits would not yet be realized, the project creates annual benefits of $32 million or greater. Additionally, a break-even analysis was performed within the sensitivity analysis to determine the year in which net benefits would begin accruing on the project. This year was found to be 2063, or 54 years into the project (including four years of construction and 50 years of service). Any following years in which the Metrorail was still operating would create increasing net benefits.

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