2012. Cost-Benefit Analysis of M4 metro line in Milan

M4The M4 metro line will connect the airport of Milano Linate and the eastern part of the city, with S. Cristoforo rail station and the west. Connection will be created with M1 in San Babila, M2 in Sant’Ambrogio and M3 in Sforza-Policlinico (linked with Crocetta existing station).

We developed a cost-benefit analysis model, fed with inputs from AMAT’s multimodal transport model of the city, to make a comprehensive socio-economic assessment of the project, considering typical benefits and costs (investment, maintenance and operation, savings from existing public transport network re-design, additional revenues and lost taxes, savings in users’ generalised costs, avoided road congestion, external costs savings). Marginal opportunity cost of public funds and wider economic effects were discussed too and a first assessment of them was provided. We also introduced innovative elements such as a social distributive analysis.

The project will be financed through a Project Financing initiative. Its CBA also underwent the assessment of the European Investment Bank, which granted its funding in 2013 for approx 300 M€.