3.1 Project costs and benefits
Planning can be defined as the orderly consideration of a project from the original statement of purpose through the evaluation of alternatives to final decision on a course of action. River Basin Planning is applying the concept of city or regional master plan, which attempts to define the most desirable future growth pattern for an area. Forecasting of the future conditions are essential (Planning Horizon), and the evaluation of alternatives is conducted by applying the principle of engineering economy, where ever applicable.
In response to the economic objectives, data on benefits and costs is required. The time value of money should be represented through an appropriate discount rate.
Not all benefits or costs of water projects can be measured in money terms. For example the social costs of requiring people to move away from a reservoir site, or the peace of mind gained by reduction of flood hazard, must be dealt with a descriptive terms. The environmental costs and benefits will also include many items which can be presented in descriptive terms only.
An example of project costs and benefits analysis for a flood mitigation project is given in many water resources engineering book.
Planning can be defined as the orderly consideration of a project from the original statement of purpose through the evaluation of alternatives to final decision on a course of action. River Basin Planning is applying the concept of city or regional master plan, which attempts to define the most desirable future growth pattern for an area. Forecasting of the future conditions are essential (Planning Horizon), and the evaluation of alternatives is conducted by applying the principle of engineering economy, where ever applicable.
In response to the economic objectives, data on benefits and costs is required. The time value of money should be represented through an appropriate discount rate.
Not all benefits or costs of water projects can be measured in money terms. For example the social costs of requiring people to move away from a reservoir site, or the peace of mind gained by reduction of flood hazard, must be dealt with a descriptive terms. The environmental costs and benefits will also include many items which can be presented in descriptive terms only.
An example of project costs and benefits analysis for a flood mitigation project is given in many water resources engineering book.
3.2 Project formulation activities
At any stage of water resources development studies, from identification to master plan, and to feasibility study, development projects have to be formulated. Once the basic data and the projections of future conditions are assembled, actual formulation of the project can commence. The important consideration is the compilation of a list of alternatives. As project formulation proceeds, it may be evident that new data or projections are required, or that some revision of background data is needed.
The first step in project formulation within a river basin is the definition of the boundary conditions that restrict a project to be built. Example of Boundary Conditions:
At any stage of water resources development studies, from identification to master plan, and to feasibility study, development projects have to be formulated. Once the basic data and the projections of future conditions are assembled, actual formulation of the project can commence. The important consideration is the compilation of a list of alternatives. As project formulation proceeds, it may be evident that new data or projections are required, or that some revision of background data is needed.
The first step in project formulation within a river basin is the definition of the boundary conditions that restrict a project to be built. Example of Boundary Conditions:
One or more aspects of water development can be eliminated on the basis of physical limitations, i.e., no navigation on torrential mountain streams.
Certain problems may be fixed in location, i.e., flood mitigation for an existing city
The available water may be limited or subject only to minor changes.
Maximum land areas usable for various purposes may be definable. This does not exclude possibility of alternative uses for a given parcel of land.
A policy decision may reserve certain lands for specific purposes, i.e., parks and recreation area.
Possible sites for water storage (both surface and underground) can be defined and their limiting capacity evaluated
Certain existing locations of water use exist and must continue to be supplied.
Legal constraints may reserve certain lands or prohibit certain activities or actions.
Negative environmental impacts may eliminate certain projects from further consideration
In formulating alternatives it is important to note that a variety of alternatives is possible. Commonly:
Engineering alternatives, various locations or heights of dams or levees versus reservoir, are recognized as alternatives.
Non structural or management alternatives such as flood plain regulation
Alternatives objectives can also be considered
Institutional alternatives might also be investigated. Various agencies, national and local, might be considered as project managers.
Alternatives of timing. In some cases the benefits may be considerably enhanced by postponing the project to a date when the requirements are compatible with the project yield. Delay may also provide time to collect needed data and permit more reliable estimates of project capabilities.
The role of planners is to present alternatives for consideration of the public or their elected decision makers. Planners must be careful not to advocate or eliminate an alternative because of their own views or prejudices.
When the alternatives have been defined, the planners’ task is to provide data which aids in choice among alternatives. The selection criteria are base on economic, social, and environmental costs and benefits (tangibles and intangibles).
3.3 Project appraisal.
The objective of project formulation is to convince the financing agencies (Banks) for funding the project implementation. The application of funding is usually conducted between the Feasibility Study and Design stage, where the funding agency will send their team to appraise the project application. The appraisal team will check whether the project is technically, environmentally, economically, and financially feasible, before proceed with financing the project.
When the alternatives have been defined, the planners’ task is to provide data which aids in choice among alternatives. The selection criteria are base on economic, social, and environmental costs and benefits (tangibles and intangibles).
3.3 Project appraisal.
The objective of project formulation is to convince the financing agencies (Banks) for funding the project implementation. The application of funding is usually conducted between the Feasibility Study and Design stage, where the funding agency will send their team to appraise the project application. The appraisal team will check whether the project is technically, environmentally, economically, and financially feasible, before proceed with financing the project.
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