Cost-benefit Analysis of Russian Airport System Renovation Projects

This document carries out a cost-benefit analysis for the Russian society of the renewal investment projects in its airport sector. An analysis is presented in relation to the problem of mobility in the Russian airport sector, and then it presents a theoretical framework and methodology to perform the appropriate cost-benefit analysis related to this type of projects, using economic, financial and social valuation techniques. The study is exploratory in that it applies methodologies for the preparation of this type of analysis to investment projects in the Russian airports. The evaluation records a social Internal Rate of Return (IRR) equivalent to 15.67% and a social Benefit / Cost Ratio (BCR) of 1.98 times for the airport sector. In order to obtain these results, it was necessary to determine the social IRR and the social BCR for the top six Russian airports that have received the largest investments in recent years, including those made in preparation to the 2018 FIFA World Cup.