Cost–Benefit Analysis of Cable Lines in La Paz–El Alto, Bolivia (Silver and Coffee Lines)

The project aimed to assess the economic and socioeconomic value of cable car investments in the La Paz–El Alto metropolitan area through a Cost–Benefit Analysis (CBA) combining ex-post and ex-ante evaluations. The challenge was to quantify the benefits and costs of both an operational line and a planned expansion, ensuring a consistent appraisal framework across different project stages. The consultancy conducted an ex-post CBA of the implemented Silver Line and an ex-ante CBA of the proposed expansion of the Coffee Line, providing evidence to inform decision-making on the performance of existing infrastructure and the viability and expected impacts of future investments.

MCRIT carried out the economic and socioeconomic Cost–Benefit Analysis of cable car investments in the La Paz–El Alto metropolitan area, covering both an ex-post assessment of the implemented Silver Line and an ex-ante evaluation of the proposed expansion of the Coffee Line. We scoped the assignment to define objectives, analytical boundaries, and key parameters, and held stakeholder meetings to agree on the scope of analysis and identify relevant costs and benefits.

Our team collected, organized, and analyzed quantitative and qualitative data, and identified and quantified all project-related costs, including direct and indirect components. We assessed and monetized the expected economic and socioeconomic benefits, considering impacts on users, productivity, social welfare, and other relevant dimensions. MCRIT calculated and interpreted standard appraisal indicators—such as Net Present Value (NPV), Internal Rate of Return (IRR), and cost-effectiveness metrics—and conducted sensitivity analyses to test the robustness of results and identify key drivers. In parallel, we developed a Cost–Benefit Analysis methodology tailored to urban cable car projects, ensuring consistency across the ex-post and ex-ante evaluations.