Nahed Zghidi*, Wissem Awedni
The Cost-Benefit Analysis is the most commonly applied evaluation method in transport infrastructure projects. The basic criterion employed in this method is the Net Present Value but its major problem is that it does not take into account certain uncertainties all along the project lifetime. Another deficiency in the traditional method is that it is rigid, static and does not take the flexibility found in most of the investments into account. The transport infrastructure projects have a dynamic nature and the decision-making procedure must take into consideration such criteria as uncertainty, irreversibility and flexibility. Many studies tried to resolve these deficiencies by the Cost-Benefit Analysis. In this context, life cycle models and stochastic methods were employed. In this paper, we dealt with the decision- making procedure for a highway project using Real Options Valuation. We extended the CBA traditional approach to create a new method considering uncertainty and flexibility as sources of value creation. The used Real Options Valuation the Tunisian highway of M’Saken-Sfax, relied on the simulation method of Monte-Carlo, and was carried out in order to explain the solution suggested for the deficiencies encountered in the Cost-Benefit Analysis.