Sustainable Asset Valuation (SAVi) of the Bus Rapid Transit Project in Senegal

The report evaluates the Dakar BRT project, finding that while it is not financially viable under traditional accounting, it generates massive net benefits when externalities like time savings and reduced transport costs are included. The project is expected to reduce GHG emissions and accidents, though it may cause net job losses in traditional transport sectors.

• The BRT project is not financially viable under traditional financial assessment regardless of passenger demand, with a negative net present value (NPV) and internal rate of return (IRR) below market rates.
• Integrating environmental, social, and economic externalities significantly enhances the project's valuation; for the default demand scenario, the IRR increases from 2.17% to 37.69% and the NPV rises from USD -51 million to USD 1.5 billion.
• The most significant positive externalities are the avoided cost of transportation and the value of time saved. Avoided transport costs range from CFA 1.15 trillion in the low-demand scenario to CFA 1.76 trillion in the high-demand scenario.
• The BRT is projected to reduce GHG emissions across its lifecycle, with reductions between 8.5% and 13.7% compared to the business-as-usual (BAU) scenario by 2040, depending on demand.
• The project is expected to lead to a reduction in annual accidents of more than 13% over time due to increased safety and a reduction in total vehicle-km travelled.
• The implementation of the BRT is projected to cause a net job loss in the transportation sector, particularly for AFTU buses (51% loss), which will not be fully offset by direct job creation from the BRT project.
• Despite direct job losses in transport, the project is expected to increase cumulative discretionary spending by 15.6% over its lifetime compared to the BAU scenario by improving access to the job market.
• Sensitivity analysis shows that a 10% increase in ticket prices can significantly improve financial viability, potentially generating a positive NPV of USD 11 million in a high-demand scenario.

APA

Bassi, A. M., Casier, L., Pallaske, G., & Uzsoki, D. (2019). Sustainable Asset Valuation (SAVi) of the Bus Rapid Transit Project in Senegal. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/savi-senegal-bus-rapid-transit-en.pdf

Chicago

Bassi, Andrea M., Liesbeth Casier, Georg Pallaske, and David Uzsoki. Sustainable Asset Valuation (SAVi) of the Bus Rapid Transit Project in Senegal. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/savi-senegal-bus-rapid-transit-en.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Casier |first2=Liesbeth |last3=Pallaske |first3=Georg |last4=Uzsoki |first4=David |title=Sustainable Asset Valuation (SAVi) of the Bus Rapid Transit Project in Senegal |publisher=International Institute for Sustainable Development |date=May 2019 |url=https://www.iisd.org/system/files/publications/savi-senegal-bus-rapid-transit-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2019sustainable, author = {Bassi, Andrea M. and Casier, Liesbeth and Pallaske, Georg and Uzsoki, David}, title = {{Sustainable Asset Valuation (SAVi) of the Bus Rapid Transit Project in Senegal}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = may, url = {https://www.iisd.org/system/files/publications/savi-senegal-bus-rapid-transit-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }