The consultant will be required to conduct a Cost−benefit analysis (CBA) of the proposed Dharoor Valley Dam project. The primary objective of the CBA will be to determine whether the benefits of the project outweigh its costs, and by how much relative to other alternatives.
Through the CBA, key decisions will be made on:
Whether the proposed project is a sound decision or investment; and/ or
Alternative project options need to be considered.
The specific tasks for the consultancy is as follows:
- The Consultant shall prepare a detailed financial and economic analysis which includes the following activities:
- Estimate the direct/indirect, tangible/intangible benefits of the Dharoor Valley dam project.
- Perform a financial and economic analysis of the project which is indicative of the resources used, efficiency, levels of return.
- Investigate the viability of the multi-purpose project (irrigation + water supply) through determination of Net Present Value (NPV), Internal Rate of Return (IRR), benefit-cost- ratio and net benefit investment ratio.
- Carry out sensitivity analysis for all major factors.
- Develop a project implementation plan
Expected output:
The Consultant shall define the objective of the CBA, collect all the relevant data and information, carry out analysis to produce the following outputs:
Inception Report, to be submitted in two (2) parts one (1) week after the commencement of the Services
Part I shall deal with the feasibility study and detailed design aspects of the assignment
Part II shall deal with the environmental and social impact issues.
The reports shall contain the refined overall work schedule, work plan, administrative arrangements, methodology and approaches, results of review of existing documents during the inception period, observations made during reconnaissance surveys and other relevant information
Financial and Economic Analysis of the proposed Dharoor Valley Dam Project, to be submitted within one (1) months after the commencement of the Services, detailing the following:
- Estimates of all project benefits
- A financial and economic analysis
- Sensitivity analysis of all major factors.
- Proposed project implementation plan
Financial and Economic Analysis of at least another two options, supported by technical data, to be submitted within one (1) months after the commencement of the Services