In addition to the financial analysis, the economic analysis was carried out in order to calculate the justification of the project from a social point of view. When calculating the economic performance of the project (economic net present value – ENSV, economic rate of return – ESD), measurable economic benefits and costs were taken into account in the table on the next page. In addition to the measurable benefits taken into account in the calculation of economic performance, the realization of the below-mentioned non-quantified or qualitative benefits is also expected as a result of the project. These benefits are not taken into account in the calculation of economic performance, but they have a positive impact on society.

Key economic benefits and costs of the project

Item	Description
Costs	Initial investment costs/investment in fixed assets (CAPEX) Additional operating costs, replacement costs and savings in the renovation of the existing line
Benefits (quantified)	Increased revenue from user fees for railway users (regular user fee) and Increased user fee Operating cost savings for freight carriers and passengers Time saving for freight carriers and passengers due to shorter and faster routes Reduced specific risks of the existing line causing traffic disruptions and line closures External savings from increased use of rail transport
Benefits (unquantified)	Increasing productivity Positive influence on the spread of LK Job creation and economic growth (project contribution to the economy) Increased reliability of passenger and cargo transportation Better access to other markets Improved transport links for passengers and better tourism development opportunities for the coastal region

 

The results from the NIP show that the project is economically justified. This is confirmed by the economic net present value (ENV) in the amount of EUR 408 million, the economic internal rate of return (EISD) in the amount of 8.36% and the benefit-cost ratio (K/S) of 2.17.