Highways Decision Making Tools
HDM Tools
EBM-32 Version 1.0
Expenditure Budgeting Model
For 32 Bit Personal Computers
February, 1999
Rodrigo Archondo-Callao
This report presents the Expenditure Budgeting Model (EBM-32) prepared by Rodrigo
Archondo-Callao. The EBM-32 Model is a modified version of the Expenditure
Budgeting Model (EBM ) developed by Thawat Watanatada and others, The World Bank.
Although the EBM-32 Model does not require any other program to be used in order to
perform budget optimizations, being a stand alone program, it is well suited to be used
with the Highways Design and Maintenance Standards Model (HDM-III) and the HDM
Manager, the Highway Development and Management Model (HDM-IV), and Pavement
Management Systems.
Copyright © 1999
Rodrigo Archondo-Callao
All rights reserved
Manufactured in the United States of America
First printing February 1999
EBM-32 is designed for use on 32 bit personal computers running Windows 95, 98, and
NT4.0. It requires a hard disk of 20 megabytes and minimum installed memory of 16 MB.
The author makes no representations or warranty with respect to the EBM-32 Model. The
user assumes all risk for the installation and use of, and results obtained from, the
program. The author shall not be liable for any error contained in the program or in the
supporting manual or documentation supplied with the program or for incidental or
consequential damage resulting from furnishing, performance, or use of the program.
Although every effort has been made to test EBM-32 and ensure its accuracy, the author
is not in a position to provide user support.
2
The EBM and EBM-32 Models
The Expenditure Budgeting Model (EBM-32) is a customized enhanced version of the
Expenditure Budgeting Model (EBM) included in the 1989 release of the World Bank's
Highway Design and Maintenance Standards Model (HDM-III). The EBM model, a
product of collaboration between the World Bank's Transportation Department and
Economic Development Institute (EDI), is an analytical tool for optimizing multiyear
programs of expenditures under multiple budgetary and other resource constraints. For a
group of projects and a series of feasible project-alternatives, the EBM is an optimization
program used to select, under budgetary constraints, for each project an alternative that
maximizes the net benefits for the group of projects.
EBM-32 is customized to analyze highways investments or maintenance projects (e.g.,
maintenance, construction, reconstruction projects) that are subject to two budgetary
constraints: (a) capital expenditures, and (b) recurrent expenditures. EBM-32 is
particularly useful when used with the HDM-III and the HDM Manager programs or the
Highway Development and Management Model (HDM-IV), because it reads the project
data generated by these programs. If EBM-32 is used with these programs, each project
represents a road to be improved or maintained; or a homogeneous road class that is part
of a representative matrix used to analyze a road network.
EBM-32 main enhancements in relation to EBM are the capability to handle up to 400
projects with each project having 17 project-alternatives (EBM can handle 50 projects
with 5 alternatives each), the capability to export the results to Excel, the inclusion of a
front-end/back-end Excel workbook, and the possibility to link EBM-32 to Pavement
Management System. The differences between EBM and EBM-32 are given in Table 1.
Table 1 - The EBM and EBM-32 Models
Maximum number of projects
Maximum number of alternatives
Maximum number of years
Maximum number of budget periods
Maximum number of resources
Default resource 1 name
Default resource 2 name
Improved optimization report
Quicker reading of HDM output files
Quicker reading of simplified budget problem
Optimizations in batch mode
Display optimization report
Save optimization report
Print optimization report
EBM
EBM-32
50
5
20
20
3
RES1
RES2
No
No
No
No
No
No
No
400
17
20
12
2
CAPITAL
RECURRENT
Yes
Yes
Yes
Yes
Yes
Yes
Yes
3
Export optimization report to Excel
Automatic linkage with a PMS system
Excel front-end/back-end workbook
Stores roughness, traffic, vehicle operating costs
No
No
No
No
Yes
Yes
Yes
Yes
This manual presents the EBM-32 description, the program installation, the program
commands, and two demonstration runs.
The EBM-32 Model
EBM-32 is an optimization program used for selecting an optimal set of projectalternatives for a series of projects under multi-period budget constraints. EBM-32
solves the problem described below.
First, you define a set of up to 400 projects (e.g., road maintenance, construction,
widening projects). Each project contains up to 17 mutually exclusive projectalternatives. Each project-alternative has annual values (up to 20 years) of economic
costs and benefits relative to some base alternative and annual amounts of the two
resources needed to implement the alternative (financial capital and financial recurrent
resources). All this information constitutes the project data.
Next, you define up to twelve budgetary periods. For example, if your analysis period is
20 years, you could define two budgetary periods: (a) the initial period (4 years), and (b)
after the initial period (16 years); or you could define five four-year budgetary periods.
Next, you enter one budgetary constraint per budgetary period and type of resource
constraint (capital or recurrent), and the discount rate used to compute present values.
The budgetary periods, the budgetary constraints, and the discount rate constitute the
problem data.
Finally, when you give the optimization command, EBM-32 examines the resources
consumed and the NPV produced from the implementation of each project-alternative.
Within the constraint that it must choose only one alternative for each project, the
program selects the group of alternatives that produces an optimal (maximum) total NPV
for all projects within the resource constraint limits for the defined budgetary periods.
This is the optimization process.
In addition, the program allows pre-selection of a particular project-alternative for any
project to be part of the final solution. The program then selects alternatives for the
remaining projects to produce the optimal NPV with the remaining uncommitted
resources.
The project data is stored in a text file in one of the following formats: a) a free format
data file that contains annual values of economic costs, economic benefits, and financial
resources for all project-alternatives, b) a simplified fixed format data file that contains
only the present values of economic net benefits and financial resources for all project4
alternatives, c) an HDM-III or 1995 HDM Manager generated data file that contains the
economic net benefits and financial resources information in a fixed format file, and d) an
HDM-IV or 1999 HDM Manager generated data file that contains the economic net
benefits, financial resources, roughness, traffic, and vehicle operating costs information in
a fixed format file. Therefore, you can create the project data file (free format or
simplified fixed format) using a text editor or you can use the project data files created by
the HDM programs.
The project data is defined only once, while the problem data is defined differently for
each desired budget scenario to be analyzed. Consequently, the project data is stored in a
text file before EBM-32 is executed and it is read once by EBM-32. The problem data,
however, is defined interactively (i.e., on-line) so it can be changed repeatedly. After
EBM-32 performs an optimization, you have the option of displaying, printing, saving, or
exporting to Excel the optimization report. If you wish, you can then change the problem
data (for example to change the budgetary constraints or the discount rate) and perform
another optimization. EBM-32 may be represented as shown in Table 2.
Table 2 - Road Network under Budgetary Constraints
ROAD 1 ROAD 2 ROAD 3 ROAD 4 ROAD 5
Possible
maintenance
alternatives
ALT0
ALT1
ALT2
ALT3
ALT0
ALT1
ALT2
ALT0
ALT0
ALT1
ALT2
ALT3
ALT0
ALT1
ALT3
EBM-32 solution
with no budgetary
constraints
ALT2
ALT2
ALT0
ALT3
ALT3
EBM-32 solution
for moderate budgetary
constraints
ALT2
ALT1
ALT0
ALT2
ALT1
EBM-32 solution
for severe budgetary
constraints
ALT1
ALT0
ALT0
ALT1
ALT0
Installing EBM-32
To install EBM-32 on your hard disk, follow the steps below:
1. Insert the program disk in drive A:
5
2. At the DOS prompt or Windows Start & Run prompt, enter the command:
A:INSTALL
The installation program expands the EBM-32 compressed files located on the system
disk and copies them into a directory called EBM-32. The files supplied on the system
disk are the following:
EBM-32.EXE
EBMHELP.DAT
EBMSTD.TXT
READ.ME
TESTHDM.EBM
TESTNETW.NET
TESTLOAD.TXT
TESTREAD.TXT
EBM-32.DOC
EBM-32.XLS
EBM-32 program
EBM-32 help file
EBM-32 standard options file
EBM-32 latest news
EBM-32 HDM-III format demonstration data file
EBM-32 HDM-IV format demonstration data file
EBM-32 simplified fixed format demonstration data file
EBM-32 free format demonstration data file
EBM-32 documentation
EBM-32 Excel front-end/back-end
Using EBM-32 Interactively
You can use EBM-32 interactively or use an Excel front-end/back-end workbook to
execute EBM-32 within Excel.
To start the program interactively, follow the steps below.
1. Change to the EBM-32 directory using the Windows Explorer.
2. Run the EBM-32 program by clicking the file:
EBM-32.EXE
If you wish you can create a shortcut to EBM-32.EXE in Windows. If EBM-32 is loaded
successfully, it displays the logo, and the ==> prompt. At this prompt, enter your desired
command. After checking your input, the program either performs the required action
and returns to the ==> prompt, for a new command, or gives an error message and returns
to the ==> prompt. To get help, enter the command HELP and to exit the program, enter
the command BYE.
The Commands
The EBM-32 commands are format free. That is, additional spaces between names and
numbers do not matter. An input line (72 characters long) is composed of names,
numbers, and delimiters, defined as follows:
6
Names are defined as a string of letters (A-Z) and/or digits (0-9). Note that a
name must begin with a letter and not with a digit.
Numbers are defined as a string of digits (0-9) with or without a decimal point and
with or without a minus sign.
Delimiters are defined as a space, a comma, or a hyphen. One or more of these
must be used to separate one name or number from another.
Names are used for commands, project names, and alternative names. Only the first four
characters of a name are significant. Hence, all project and alternative names are only
four characters long and all commands can be reduced to the first four characters of each
word. Note that a name must begin with a letter and not with a digit. Table 3 lists the
EBM-32 commands.
Table 3 - EBM-32 Commands
COMMAND
ACTION
READ
LOAD
Read project data in free format text file
Read project data in simplified fixed format
text file
Read project data in a HDM-III format
text file
Read project data in an HDM-IV format
text file
Read problem data from a text file
Define discount rate
Define budgetary periods
Define capital resources
Define recurrent resources
Pre-select project-alternatives
Perform the optimization
Display last optimization report
Print last optimization report
Save last optimization report
Export last optimization report
Display help screens
Exit the program
HDM
NETWORK
STANDARD OPTIONS
DISCOUNT RATE <i>
TIME PERIODS <t1-t1> <t2-t2> .
CAPITAL <c1> <c2> ..
RECURRENT <r1> <r2> ..
PRESELECT <prj-alt> <prj-alt>
OPTIMIZE
DISPLAY
OUTPUT
FILE
EXPORT
HELP
BYE
The Project Data
The project data consists of a set of projects that are composed of project-alternatives that
contain annual values for economic costs and economic benefits relative to some base
case and the resources necessary to implement the project-alternative (capital and
7
recurrent financial expenditures). You should store the project data in a text file in one of
the following possible formats:
a) Free Format Data File. Each project-alternative can have up to 20 years of
economic costs, economic benefits and financial resource requirements (capital
and recurrent). The information stored in this file is free format. That is, the
number of spaces between names and numbers does not matter.
b) Simplified Fixed Format Data File. Each project-alternative contains only one
value that represents the net benefits of implementing the alternative (net present
value) and, similarly, it contains only one value that represents the financial
capital resource requirements and another value that represent the financial
recurrent resource requirements (present values of the capital and recurrent
resources). This file has a fixed format. That is, the position of the names and
values does matter.
c) HDM-III Format Data File. Each project-alternative has up to 20 years of
economic net benefits and financial capital and recurrent resource requirements.
This file is created by the HDM-III or 1995 HDM Manager programs and has a
fixed format.
d) HDM-IV Format Data File. Each project-alternative has up to 20 years of
economic net benefits, financial capital and recurrent resource requirements,
roughness, daily traffic, and vehicle operating costs. This file is created by the
HDM-IV or 1999 HDM Manager programs and has a fixed format.
Free Format Data File
A free format data file is a text file created with a text editor. A maximum of 400
projects can be defined and each project can consist of up to 17 mutually exclusive
alternatives. To each project and to each project-alternative, you give a four-character
name (e.g., PV01, ALT0) and annual values are entered in rows. An example of a free
format project data file is given in Figure 1.
Figure 1 - Free Format Data File Sample
PROJECT PV01 MAINTENANCE
ALTERNATIVE ALT0
ANNUAL VALUES
1
0.
0.
2
0.
0.
3
0.
0.
4
0.
0.
ALTERNATIVE ALT1
ANNUAL VALUES
1.
60. 0.000
2.
0.
33.456
0.000
0.000
0.000
0.000
75.000
0.000
1.396
1.396
1.436
1.729
1.396
1.396
8
3.
0.
68.594
4
0.
19.204
PROJECT PV02 MAINTENANCE
ALTERNATIVE ALT0
ANNUAL VALUES
1
0.
0.
2
0.
0.
3
0.
0.
4
0.
0.
ALTERNATIVE ALT1
ANNUAL VALUES
1.
70. 0.000
2.
0.
7.275
3.
0.
7.716
4
0.
-3.761
0.000
46.598
0.000
0.000
0.000
0.000
1.436
1.396
1.182
1.182
1.210
1.242
88.000
1.182
0.000
1.182
0.000
1.229
26.606
1.182
The data is specified as follows:
PROJECT <name 1> MAINTENANCE
ALTERNATIVE <name 1>
ANNUAL VALUES
<year-1> <costs> <benefits> <capital resources> <recurrent resources>
<year-2> <costs> <benefits> <capital resources> <recurrent resources>
.
.
<year-n> <costs> <benefits> <capital resources> <recurrent resources>
ALTERNATIVE <name 2>
ANNUAL VALUES
<year-1> <costs> <benefits> <capital resources> <recurrent resources>
<year-2> <costs> <benefits> <capital resources> <recurrent resources>
.
.
<year-n> <costs> <benefits> <capital resources> <recurrent resources>
.
.
ALTERNATIVE <name m>
ANNUAL VALUES
<year-1> <costs> <benefits> <capital resources> <recurrent resources>
<year-2> <costs> <benefits> <capital resources> <recurrent resources>
.
.
<year-n> <costs> <benefits> <capital resources> <recurrent resources>
PROJECT <name 2> MAINTENANCE
ALTERNATIVE <name 1>
ANNUAL VALUES
Each alternative has a four-character name and up to 20 years of annual data. The annual
data consist of economic costs, economic benefits, financial capital resources and
financial recurrent resources. Economic costs and benefits are relative to some base,
which may or may not be present as an alternative.
Note that in the project data file shown in Figure 1 there are two maintenance projects
(PV01 and PV02), each project has two maintenance alternatives (ALT0 and ALT1), and
9
each maintenance alternative has data for four years. Note also that the number of spaces
between names and numbers does not matter.
READ Command
The READ command instructs the program to read the project data from a Free Format
Data File. EBM-32 analyzes each line on the file and collects valid information. Follow
the steps below:
1. Enter the READ command.
READ
2. Enter the filename of the file you want to read.
After you enter a valid filename, EBM-32 loads all project data.
Simplified Fixed Format Data File
A simplified fixed format data file is a text file created with a text editor. You can store
the project data in a simplified fixed format data file if you want to solve a simple
optimization problem defined as follows:
- You define up to 400 maintenance projects
- You define up to 17 maintenance alternatives per project
- You provide the present value of net benefits (NPV) of each project-alternative
- You provide the present value of the resources required (capital and recurrent) to
implement each project-alternative
In this case, you enter the present value of the net benefits and the required resources, not
the annual values as in the free format file. Therefore, only one budgetary period is
defined. An example of a simplified fixed format data file is given in Figure 2.
Figure 2 - Simplified Fixed Format Data File Sample
PRJ1 ALTA
ALTB
ALTC
PRJ2 ALTA
ALTB
ALTC
1
|
4
4.000
7.000
8.000
3.000
6.000
8.000
2.000
5.000
7.000
1.000
3.000
5.000
0.000
0.000
0.000
0.000
0.000
0.000
|
20
|
30
|
40
|
9
Columns
10
Information in a simplified fixed format data file is defined as follow:
Project
Name
Alternative PV of
Name
Net Benefits
(NPV)
PV of
Capital
Resources
PV of
Recurrent
Resources
Columns
1 to 4
Columns
6 to 9
Columns
11 to 20
Columns
21 to 30
Columns
31 to 40
PRJ1
ALT1
ALT2
ALT3
.
ALTn
ALT1
ALT2
ALT3
.
ALTn
ALT1
.
.
bb.bbb
cc.ccc
rr.rrr
PRJ2
PRJ3
.
PRJm
where PRJx is the project name, ALTx is the alternative name, bb.bbb are the net
benefits, cc.ccc are the capital resources, and rr.rrr are the recurrent resources.
LOAD Command
The LOAD command instructs the program to read the project data from a simplified
fixed format data file. Follow the steps below:
1. Enter the LOAD command.
LOAD
2. Enter the filename of the file you want to read.
After you enter a valid filename, EBM-32 loads all project data.
HDM-III Data File
11
The HDM-III and 1995 HDM Manager programs create EBM-32 ready HDM-III data
files. These files are similar to the free format data files, but the annual economic cost
column is always zero and the economic benefits column represents net economic
benefits. That is, positive values represent benefits and negative values represent costs.
An HDM-III data file can be read using the READ command but this procedure takes
time because the READ command considers the file a free format file and has to examine
and break-up each line. The fastest method of reading an HDM-III data file is to use the
HDM command.
HDM Command
The HDM command instructs EBM-32 to read the project data from an HDM-III data
file. Follow the steps below:
1. Enter the HDM command.
HDM
2. Enter the filename of the file you want to read.
After you enter a valid filename, EBM-32 loads all project data.
HDM-IV Data File
The HDM-IV and 1999 HDM Manager programs create EBM-32 ready HDM-IV data
files. These files contain, for up to 20 years, economic net benefits, financial capital and
recurrent resources, roughness, daily traffic, and vehicle operating costs in a fix format.
To read these files use the NETWORK command.
NETWORK Command
The NETWORK command instructs the program to read the project data from an HDMIV data file. Follow the steps below:
1. Enter the NETWORK command.
NETWORK
2. Enter the filename of the file you want to read.
After you enter a valid filename, EBM-32 loads all project data.
12
The Problem Data
The problem data consist of budgetary periods (up to twelve), budgetary resource
constraints (one per resource type and budgetary period), a discount rate for computing
present values, and pre-selected project-alternatives (if any).
Budgetary Periods
The budgetary periods (up to twelve) are specified in the following form:
TIME PERIODS <begin year-end year> <begin year-end year> <..> <..> <..>
The years may be calendar years or relative years. For example:
TIME PERIODS 1-4 5-20
Defines two
budgetary periods
TIME PERIODS 1981-1981 1982-1983 1984-1988 1989-1995
Defines four
budgetary periods
Time periods must be specified before entering resource constraint levels, and time
periods must neither overlap nor leave any gap between successive periods. For example,
the following time periods are invalid:
TIME PERIODS 1981-1985 1984-1988
Overlapping years
TIME PERIODS 1981-1985 1987-1988
Gap left in the periods
In case you loaded the simplified fixed format data file, you do not need to specify the
TIME PERIODS command. The program automatically assigns: TIME PERIODS 1-1.
Budgetary Resource Constraints
The commands for entering budgetary resource constraint are the following:
To define capital budgetary constraints
CAPITAL <constraint-1> <constraint-2>. . . .<constraint-n>
To define recurrent budgetary constraints
RECURRENT <constraint-1> <constraint-2>. . . .<constraint-n>
where n is the number of defined budgetary periods. For example:
13
CAPITAL 40 500
Defines two capital
constraints: 40 for the
first time period and
500 for the second
time period
RECURRENT 10 25 30
Defines three
recurrent constraints:
10 for the first time
period, 25 for the
second time period
and 30 for the third
time period.
Discount Rate
A discount rate is defined with the command:
DISCOUNT RATE <percentage>
For example:
DISCOUNT RATE 12
Defines discount rate
equal to 12%
Pre-Selected Project-Alternatives
You can pre-select an alternative for a project to be part of the solution. To pre-select a
project-alternative use the following command:
PRESELECT <prjname-altname> <prjname-altname> <prjname-altname>
where prjname-altname is a four-letter valid project name and a four-letter alternative
name separated by a hyphen (-). If more than one project alternatives are selected for the
same project, the last alternative specified will be used. Any number of projects can have
pre-selected alternatives. Project-Alternatives may be continued on another line without
re-specifying the PRESELECT command. Note that an input line is only 72 characters
long.
The Standard Options Command
You may opt to store some problem data commands that you use repeatedly in a text file
that is read whenever the STANDARD OPTIONS command is used. For example, you
may choose to define the discount rate to be 12 and to use two budgetary time periods (14 and 5-20), so after entering the STANDARD OPTIONS command these options will
be active.
14
The STANDARD OPTIONS command causes EBM-32 to read a standard options file
(EBMSTD.TXT) in which you can store a standard set of commands. To use this
command, the file EBMSTD.TXT must be on your default directory (i.e., the EBM-32
directory).
The Optimize Command
The OPTIMIZE command causes EBM-32 to select project-alternatives that produce the
optimal (maximum) NPV for the set of projects, given the resources required for each
project-alternative and the resource constraints for each budgetary period. The
optimization cannot be performed unless the following conditions are met:
1) At least one project, one time period, and one resource constraint have been defined.
2) The time periods are properly defined (without overlapping periods or gaps between
the periods).
3) The resources required for the pre-selected alternatives do not exceed the resource
constraints.
4) The minimum resources required to implement one alternative for each of the projects
do not exceed the resource constraints.
5) The budget constraint for each resource (capital or recurrent) and time period is greater
than zero.
To perform the optimization enter the command:
OPTIMIZE
After EBM-32 performs the optimization, the program displays continuously the
optimization report that is, without pausing when the screen is full. This is done on
purpose to allow the program to perform a series of optimizations unattended. After
EBM-32 displays the optimization report, you have the option of displaying it again (this
time with pauses) using the DISPLAY command. To examine the optimization report,
you have the following options:
- Display the report
- Print the report
- Save the report
- Export the report
A sample of an optimization report is given in Figure 3.
15
Figure 3 - Optimization Report Sample
EBM-32 SOLUTION (METHOD TOTE) AT 12.0 % DISCOUNT
PROJECTS
4 PERIODS
2 RESOURCES
2 YEARS
20
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------IRI2
ALT3
34.354
14.146
2.804
IRI4
ALT3
104.022
64.213
2.774
IRI7
ALT3
94.849
64.213
2.774
GRAV
ALT3
112.326
22.321
6.446
PROJECT
ALL PROJECTS
YEAR
---1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CAPITAL
RESOURCE
-----------98.00
.00
28.00
.00
.00
.00
.00
.00
.00
.00
81.67
49.00
16.33
.00
.00
.00
.00
.00
.00
.00
345.551
164.894
14.798
RECURRENT
RESOURCE
-----------1.10
1.10
1.10
3.52
3.52
3.52
1.32
1.33
1.35
1.40
1.37
1.34
1.34
1.34
1.35
1.37
1.38
1.38
1.41
1.43
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
4
5 TO 20
RECURRENT
1 TO
4
5 TO 20
TOTAL
RESOURCES
AVAILABLE
---------10000.00
10000.00
10000.00
10000.00
NETWORK NPV AT 12.0% =
345.55
TOTAL
RESOURCES
USED
---------126.00
147.00
6.82
26.14
RESOURCES
USED
PER YEAR
---------31.5000
9.1874
1.7050
1.6339
Display Optimization Report
Use the DISPLAY command to display the last optimization report. The scroll stops
when the screen is full. Press the <Enter> key to continue.
16
Print Optimization Report
Use the OUTPUT command to print the last optimization report. Make sure your printer
is ready before sending this command.
File Optimization Report
Use the FILE command to save (into a text file) the last optimization report. The
program will prompt for the filename to save the report.
Export Optimization Report
Use the EXPORT command to export to Excel or other spreadsheet the last optimization
report. The program will prompt for the filename to save the report. The program saves
the report in a delimited with commas text file that can be imported into Excel or other
spreadsheet package. It is suggested that you should give this file a .CSV extension,
because Excel recognizes .CSV as the extension of delimited with commas text files. To
import the file into Excel, just open the file.
The delimited text file created by EBM-32 contains not only the optimization report, it
also contains for the alternative selected for each project the following useful
information:
- Annual net benefits
- Annual capital resources
- Annual recurrent resources
- Annual roughness
- Annual traffic
- Annual vehicle operating costs
You can also use the TAB command to create a tab delimited text file containing the same
information as the comma delimited text file created with the EXPORT command.
The Print Commands
The EBM-32 program allows you to display the project data or the problem data by using
the PRINT command.
The PRINT INPUT command displays the project data showing annual economic costs,
economic benefits, and resource requirements for a given project or alternative. It can
also print a summary of the data entered for all project alternatives. The formats of the
print commands are:
17
PRINT INPUT <prj1-alt1> <prj2-alt2>
Prints the annual values
for the project-alternatives
prj1-alt1 and prj2-alt2.
PRINT INPUT <prj1> ALL
Prints all alternatives for
project prj1.
PRINT INPUT ALL
Prints all the project for all
project-alternatives.
PRINT INPUT SUMMARY
Prints a summary of input
data for all the projects.
The PRINT PROBLEM command displays the project data as they are used in the
optimization, i.e., all annual data are aggregated by budget period and NPV, computed
using the current discount rate. It can also print a summary of the problem data including
the resource constraints, discount rate, and pre-selected project-alternative choices. The
PRINT PROBLEM command works the same way as the PRINT INPUT command,
except that instead of printing annual values it prints out the total resources required for
each time period and the computed net present value.
The Help Command
The HELP command provides on-line description of EBM-32 commands. For example:
HELP
Displays the help screens
The Bye Command
The BYE command terminates the EBM-32 session. For example:
BYE
Quits EBM-32
EBM-32 Interactively Demonstration Runs
First Demonstration Run
To execute the first EBM-32 demonstration run, follow the steps below:
1. Change to the EBM-32 directory using the Windows Explorer.
2. Run the EBM-32 program by clicking the file:
18
EBM-32.EXE
EBM-32 displays the logo and the ==> prompt appears on the screen.
3. Start off by reading in the project data stored in TESTREAD.TXT. Use the READ
command:
==>READ
The program prompts:
Enter filename =>
Enter:
TESTREAD.TXT
The program displays the message:
Reading file: TESTREAD.TXT
After the file is read, the program displays:
End reading file. 0 errors found.
The TESTREAD.TXT file contains project data for four road maintenance projects, each
project has annual values (twenty years) for four possible alternatives. Note that since the
TESTREAD.TXT file was created by HDM-III, you could have used the HDM command
to read the file. If you had used the HDM command, the reading procedure would have
taken less time.
4. To display a summary description of the current project data, enter:
==>PRINT INPUT SUMMARY
The program displays the following report:
ANNUAL DATA : SUMMARY
PROJECT
------IRI2
TYPE
----------MAINTENANCE
IRI4
MAINTENANCE
IRI7
MAINTENANCE
ALTERNATIVE
----------ALT0
ALT1
ALT2
ALT3
ALT0
ALT1
ALT2
ALT3
ALT0
FIRST LAST
YEAR YEAR
---------1- 20
1- 20
1- 20
1- 20
1- 20
1- 20
1- 20
1- 20
1- 20
YEARS
OF DATA
------20
20
20
20
20
20
20
20
20
19
GRAV
ALT1
ALT2
ALT3
ALT0
ALT1
ALT2
ALT3
MAINTENANCE
1111111-
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Note that the project names are: IRI2, IRI4, IRI7, and GRAV, and the alternatives names
for each project are: ALT0, ALT1, ALT2, ALT3. Once all the project data is loaded, the
next step is to define the problem data interactively.
5. Define the discount rate:
==>DISCOUNT RATE 12
6. Define two budgetary periods. One for the first 4 years and the other for the following
16 years.
==>TIME PERIODS 1-4 5-20
7. Enter the financial capital and recurrent resource constraints for each time period. For
the first optimization, enter very high constraints inputs to obtain the solution for an
unconstrained budget scenario:
==>CAPITAL 10000 10000
==>RECURRENT 10000 10000
8. Before doing the optimization, display the current problem data.
==>PRINT PROBLEM
The program displays the following report:
PROBLEM DATA : SUMMARY
---------------------RESOURCE
NAME
---------CAPITAL
RECURRENT
PERIOD
--------14
5- 20
14
5- 20
DISCOUNT RATE =
PROJECT
------IRI2
IRI4
IRI7
GRAV
CONSTRAINT
LEVEL
---------10000.00
10000.00
10000.00
10000.00
12.0 %
PREDETERMINED
CHOICE
-------------
ALTERNATIVES DEFINED
-------------------------------------------------ALT0 ALT1 ALT2 ALT3
ALT0 ALT1 ALT2 ALT3
ALT0 ALT1 ALT2 ALT3
ALT0 ALT1 ALT2 ALT3
20
9. Issue the command to perform the optimization.
==>OPTIMIZE
The program produces the following optimization report.
EBM-32 SOLUTION (METHOD TOTE) AT 12.0 % DISCOUNT
PROJECTS
4 PERIODS
2 RESOURCES
2 YEARS
20
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------IRI2
ALT3
34.354
14.146
2.804
IRI4
ALT3
104.022
64.213
2.774
IRI7
ALT3
94.849
64.213
2.774
GRAV
ALT3
112.326
22.321
6.446
PROJECT
ALL PROJECTS
YEAR
---1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CAPITAL
RESOURCE
-----------98.00
.00
28.00
.00
.00
.00
.00
.00
.00
.00
81.67
49.00
16.33
.00
.00
.00
.00
.00
.00
.00
345.551
164.894
14.798
RECURRENT
RESOURCE
-----------1.10
1.10
1.10
3.52
3.52
3.52
1.32
1.33
1.35
1.40
1.37
1.34
1.34
1.34
1.35
1.37
1.38
1.38
1.41
1.43
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
4
5 TO 20
RECURRENT
1 TO
4
5 TO 20
TOTAL
RESOURCES
AVAILABLE
---------10000.00
10000.00
10000.00
10000.00
NETWORK NPV AT 12.0% =
345.55
TOTAL
RESOURCES
USED
---------126.00
147.00
6.82
26.14
RESOURCES
USED
PER YEAR
---------31.5000
9.1874
1.7050
1.6339
Note that the program displays the optimization report without pausing when the screen is
full. To display the report with pauses give the DISPLAY command:
==>DISPLAY
21
If you have a printer attached, give the OUTPUT command to print the report.
==>OUTPUT
Note that for this unconstrained scenario (input constraint levels much higher than
resources needed) the best alternative for all projects is alternative ALT3, we need 126.00
capital resources in the first budgetary period to implement the solution, and that the NPV
for all projects is 345.55.
10. To find the solution for the scenario in which we have only 100 available for capital
resources in the first budgetary period, reduce the available capital to 100.
==>CAPITAL 100 10000
11. Once again, perform the optimization with the OPTIMIZE command.
==>OPTIMIZE
This time, the program produces the following optimization report:
EBM-32 SOLUTION (METHOD TOTE) AT 12.0 % DISCOUNT
PROJECTS
4 PERIODS
2 RESOURCES
2 YEARS
20
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------IRI2
ALT3
34.354
14.146
2.804
IRI4
ALT3
104.022
64.213
2.774
IRI7
ALT3
94.849
64.213
2.774
GRAV
ALT1
83.632
.000
5.366
PROJECT
ALL PROJECTS
YEAR
---1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CAPITAL
RESOURCE
-----------98.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
81.67
49.00
16.33
.00
.00
.00
.00
.00
.00
.00
316.857
142.573
13.717
RECURRENT
RESOURCE
-----------1.64
1.64
1.65
1.65
1.66
1.66
1.67
1.68
1.71
1.64
1.62
1.58
1.57
1.57
1.58
1.58
1.58
1.58
1.59
1.60
22
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
4
5 TO 20
RECURRENT
1 TO
4
5 TO 20
TOTAL
RESOURCES
AVAILABLE
---------100.00
10000.00
10000.00
10000.00
NETWORK NPV AT 12.0% =
316.86
TOTAL
RESOURCES
USED
---------98.00
147.00
6.59
25.88
RESOURCES
USED
PER YEAR
---------24.5000
9.1874
1.6465
1.6173
Note that with the 100 capital constraint, the best alternatives for the GRAV project has
changed to ALT1, the NPV for all projects has decreased to 316.86, and of the available
capital resources (100) we are using 98 to implement the solution.
12. Next, reduce the capital available in the first period to 50 and optimize again.
==>CAPITAL 50 10000
==>OPTIMIZE
The program produces the following optimization report:
EBM-32 SOLUTION (METHOD TOTE) AT 12.0 % DISCOUNT
PROJECTS
4 PERIODS
2 RESOURCES
2 YEARS
20
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------IRI2
ALT3
34.354
14.146
2.804
IRI4
ALT3
104.022
64.213
2.774
IRI7
ALT0
.000
48.935
2.761
GRAV
ALT1
83.632
.000
5.366
PROJECT
ALL PROJECTS
YEAR
---1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CAPITAL
RESOURCE
-----------49.00
.00
.00
.00
77.00
.00
.00
.00
.00
.00
49.00
32.67
16.33
.00
.00
.00
.00
.00
.00
.00
222.008
127.295
13.704
RECURRENT
RESOURCE
-----------1.64
1.64
1.65
1.65
1.66
1.66
1.67
1.68
1.71
1.62
1.61
1.58
1.57
1.57
1.58
1.58
1.58
1.58
1.59
1.60
23
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
4
5 TO 20
RECURRENT
1 TO
4
5 TO 20
TOTAL
RESOURCES
AVAILABLE
---------50.00
10000.00
10000.00
10000.00
NETWORK NPV AT 12.0% =
222.01
TOTAL
RESOURCES
USED
---------49.00
175.00
6.59
25.84
RESOURCES
USED
PER YEAR
---------12.2500
10.9374
1.6465
1.6150
Note that the best alternative for link IRI7 has changed to alternative ALT0 and the NPV
is reduced to 222.01. Note also that in this exercise we are maintaining the recurrent
resources and the capital resource in the second budgetary period unconstrained.
13. To create a file containing the last optimization report to be retieved by Excel, enter
the command:
==>EXPORT
Enter the filename with a .CSV extension:
TEST1.CSV
Later, you can retrieve this file in Excel by opening the file. This file contains the
optimization report and also the annual net benefits, capital resources, and recurrent
resources. Note that if the project file was created with HDM-IV or 1999 HDM Manager
and the NETWORK option was used to read the file, the exported file would also contain
the length of each project and the annual roughness, daily traffic, and vehicle operating
costs.
14. Finally, exit EBM-32 with the command:
==>BYE
Second Demonstration Run
To execute the second EBM-32 demonstration run, follow the steps below:
1. Change to the EBM-32 directory using the Windows Explorer.
2. Run the EBM-32 program by clicking the file:
EBM-32.EXE
EBM-32 displays the logo and the ==> prompt appears on the screen.
3. Start off by reading in the project data stored in TESTLOAD.TXT. This time, use the
LOAD command:
24
==>LOAD
The program prompts:
Enter filename =>
Enter:
TESTLOAD.TXT
The TESTLOAD.TXT file contains project data for a simplified budgetary problem. The
file describes two maintenance projects and each project has three alternatives. For each
alternative, we define the net benefits (NPV) and the present value of capital and
recurrent resource requirements. Note that in this example the recurrent resource
requirements are zero. The contents of TESTLOAD.TXT is given below:
PRJ1 ALTA
ALTB
ALTC
PRJ2 ALTA
ALTB
ALTC
4.000
7.000
8.000
3.000
6.000
8.000
^
|
Net
Benefits
2.000
5.000
7.000
1.000
3.000
5.000
^
|
Capital
Resources
0.000
0.000
0.000
0.000
0.000
0.000
^
|
Recurrent
Resources
Note that the project names are PRJ1 and PRJ2, the alternative names are ALTA, ALTB
and ALTC.
Since this is a simplified budgetary problem where only the present values are defined,
the program sets the budgetary periods to one (1-1) and does not use the discount rate to
perform the optimization.
4. Enter the capital constraint input for the first optimization.
==>CAPITAL 1000
5. Optimize and display.
==>OPTIMIZE
==>DISPLAY
The following optimization report will be created:
EBM-32 SOLUTION (METHOD TOTE) AT
PROJECTS
2 PERIODS
.0 % DISCOUNT
1 RESOURCES
1 YEARS
1
25
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------PRJ1
ALTC
8.000
7.000
.000
PRJ2
ALTC
8.000
5.000
.000
PROJECT
ALL PROJECTS
YEAR
---1
16.000
12.000
.000
CAPITAL
RESOURCE
-----------12.00
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
1
NETWORK NPV AT
.0% =
TOTAL
RESOURCES
AVAILABLE
---------1000.00
TOTAL
RESOURCES
USED
---------12.00
RESOURCES
USED
PER YEAR
---------12.0000
16.00
6. Reduce the capital constraint input and optimize again.
==>CAPITAL 6
==>OPTIMIZE
==>DISPLAY
EBM-32 SOLUTION (METHOD TOTE) AT
PROJECTS
2 PERIODS
.0 % DISCOUNT
1 RESOURCES
1 YEARS
1
ALTERNATIVE PRESENT VALUE PRESENT VALUE PRESENT VALUE
SELECTED OF NET BENE_
OF CAPITAL
OF RECURRENT
FITS (NPV)
RESOURCES
RESOURCES
------- ----------- ------------- ------------- ------------PRJ1
ALTB
7.000
5.000
.000
PRJ2
ALTA
3.000
1.000
.000
PROJECT
ALL PROJECTS
YEAR
---1
10.000
6.000
.000
CAPITAL
RESOURCE
-----------6.00
BUDGETARY
RESOURCE
PERIOD
---------- ----------CAPITAL
1 TO
1
NETWORK NPV AT
.0% =
TOTAL
RESOURCES
AVAILABLE
---------6.00
TOTAL
RESOURCES
USED
---------6.00
RESOURCES
USED
PER YEAR
---------6.0000
10.00
Note that if you enter a capital constraint of 2, the program displays a message indicating
that it is not possible to find a feasible solution.
26
7. Finally, exit EBM-32 with the command:
==>BYE
Using EBM-32 in Batch Processing Mode
You can execute EBM-32 within a Pavement Management System (PMS) or any other
program in batch mode. In this case, the other system creates the files needed by EBM32, EBM-32 runs automatically, and the other system reads the results from the EBM-32
output files. The steps are the following:
a) The PMS has to create the following files and place them in the EBM-32 directory.
PMS_IN.HDM
with the project data in HDM-III format data file (HDM)
or
PMS_IN.NET
with the project data in HDM-4 format data file (NETWORK)
and
PMS_IN.TXT
with the problem data and sequence of command to execute in
batch mode
b) The PMS has to execute the EBM-32.EXE program located on the EBM-32 directory
with one of the following options:
EBM-32.EXE A
to execute EBM-32 and read PMS_IN.HDM and
PMS_IN.TXT automatically
or
EBM-32.EXE A B
to execute EBM-32 and read PMS_IN.NET and
PMS_IN.TXT automatically
c) EBM-32 reads the project and problem data from the corresponding input files and
creates the following output files:
PMS_OUT.TXT
a text file with all the optimization results.
and
PMS_OUT.CSV
a comma delimited text file with all the optimization results
d) The PMS collects the results from the EBM-32 output files.
27
On the problem data file, you can add the following command after each optimization to
save the results of that optimization on a comma delimited file (.CVS).
PMS xxxx
where xxxx is a four character maximum file name. For examples:
PMS out1
creates a file named out1.csv on the EBM-32 directory.
The EBM-32 front-end/back-end Excel workbook included with EBM-32 uses these
principles to create a front-end to EBM-32, where users enter the project and problem
data in Excel, and a back-end to EBM-32, where Excel collect collects the results of
EBM-32 and presents them on a practical manner.
28
References
1. Watanatada, T., Harral, C., Paterson, W.D.O., Dhareshwar, A.M., Bhandari, A., and
Tsunokawa, K., The Highway Design and Maintenance Standards Model, Volume 1: Description
of the HDM-III Model, Volume 2: User's Manual for the HDM-III Model, Baltimore: Johns
Hopkins University Press, 1987.
2. Archondo-Callao, R., Purohit, R.K., The Highway Design and Maintenance Standards Model,
User's Guide and PC Disks., Washington, D.C.: World Bank Software, 1989.
3. Archondo-Callao, R., HDM Manager Version3.0, User-friendly Shell Environment for HDM,
Washington, D.C.: World Bank Software, 1994.
29