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A simplified method aimed at improving the quality of economic analysis on water supply projects.
Project economic analysis is a tool used by the Asian Development Bank (ADB) to ensure that ADB operations comply with its Charter. The guidelines in this publication are a revised version of the 1997 edition. The revision responds to the changing development context and ADB operational priorities, and aims to address the recommendations of the ADB Quality-at-Entry Assessments for more methodological work on project economic analysis. The revised guidelines provide general principles for the conduct of project economic analysis, and should be read together with handbooks, technical reports, and other reference materials published by ADB dealing with sector-specific project economic analysis in detail.
Climate change represents an increasing threat to the continued development of the people, preservation of ecosystems, and economic growth of Asia and the Pacific. Mainstreaming climate risk management in all aspects of development is thus key to an effective transition to climate-resilient development pathways. ADB's climate risk management framework aims to reduce risks resulting from climate change to investment projects in Asia and the Pacific. A key step in this framework is the technical and economic valuation of climate-proofing measures. This report describes the conduct of the cost-benefit analysis of climate proofing investment projects. An important message is that the presence of uncertainty about climate change does not invalidate the conduct of the economic analysis of investment projects, nor does it require a new type of economic analysis. However, the presence of uncertainty does require a different type of decision-making process in which technical and economic expertise combine to present decision makers with the best possible information on the economic efficiency of alternative designs of investment projects.
This manual and the free downloadable costing tool is the outcome of a project identified by the Water, Sanitation and Health Programme (WSH) of the World Health Organization (WHO) faced with the challenge of costing options for improved access, both to safe drinking water and to adequate sanitation. Although limited in scope to the process of costing safe water supply technologies, a proper use of this material lies within a larger setting considering the cultural, environmental, institutional, political and social conditions that should be used by policy decision makers in developing countries to promote sustainable development strategies. Costing Improved Water Supply Systems for Low-income Communities provides practical guidance to facilitate and standardize the implementation of social life-cycle costing to “improved” drinking-water supply technologies. These technologies have been defined by the WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation, as those that, by the nature of its construction, adequately protect the source of water from outside contamination, in particular with faecal matter. The conceptual framework used has also been conceived to be applied to costing improved sanitation options. To facilitate the application of the costing method to actual projects, a basic tool was developed using Microsoft Excel, which is called a water supply costing processor. It enables a user-friendly implementation of all the tasks involved in a social life-cycle costing process and provides both the detailed and the consolidated cost figures that are needed by decision-makers. The scope and the limits of the costing method in a real setting was assessed through field tests designed and performed by local practitioners in selected countries. These tests were carried out in Peru and in six countries in the WHO regions of South-East Asia and the Western Pacific. They identified practical issues in using the manual and the water supply costing processor and provided practical recommendations. References and Glossary Author(s): Fabrizio Carlevaro, Geneva School of Economics and Management, Switzerland and Cristian Gonzalez, International Road Federation, Geneva, Switzerland
The increasing scarcity of water resources (in terms of quantity and quality) is one of the most pervasive natural resource allocation issues facing development planners throughout the world. This problem is especially prevalent in less developed countrie
Because water in the United State has not been traded in markets, there is no meaningful estimate of what it would cost if it were traded. But failing to establish ground water's valueâ€"for in situ uses such as sustaining wetlands as well as for extractive uses such as agricultureâ€"will lead to continued overuse and degradation of the nation's aquifers. In Valuing Ground Water an interdisciplinary committee integrates the latest economic, legal, and physical knowledge about ground water and methods for valuing this resource, making it comprehensible to decision-makers involved in Superfund cleanup efforts, local wellhead protection programs, water allocation, and other water-related management issues. Using the concept of total economic value, this volume provides a framework for calculating the economic value of ground water and evaluating tradeoffs between competing uses of it. Included are seven case studies where ground-water valuation has been or could be used in decisionmaking. The committee examines trends in ground-water management, factors that contribute to its value, and issues surrounding ground-water allocation and legal rights to its use. The book discusses economic valuation of natural resources and reviews several valuation methods. Presenting conclusions, recommendations, and research priorities, Valuing Ground Water will be of interest to those concerned about ground-water issues: policymakers, regulators, economists, attorneys, researchers, resource managers, and environmental advocates.
Expanding water reuse-the use of treated wastewater for beneficial purposes including irrigation, industrial uses, and drinking water augmentation-could significantly increase the nation's total available water resources. Water Reuse presents a portfolio of treatment options available to mitigate water quality issues in reclaimed water along with new analysis suggesting that the risk of exposure to certain microbial and chemical contaminants from drinking reclaimed water does not appear to be any higher than the risk experienced in at least some current drinking water treatment systems, and may be orders of magnitude lower. This report recommends adjustments to the federal regulatory framework that could enhance public health protection for both planned and unplanned (or de facto) reuse and increase public confidence in water reuse.
The Asian Development Bank (ADB) has been continuously undertaking measures to enhance the effectiveness of its operations. To improve projects both at the preparation and implementation stages, ADB issued the Guidelines for Economic Analysis of Projects in 1997 as a means to enhancing project quality at entry. The conduct of proper economic analysis helps ensure the efficient use of development funds and public resources and thereby increase aid effectiveness. This practical guide is a supplement to the Guidelines for the Economic Analysis of Projects. It provides an overview of recent methodological developments in cost-benefit analysis as well as suggested improvements in the economic analysis of projects in selected sectors through case studies. These case studies illustrate the application of suggested methodologies, taking into account sector-specific needs, as well as difficulties faced by practitioners in terms of data and time constraints during project processing. It also aims to contribute to ADB’s capacity building initiatives as this will be the main reference material for conduct of economic analysis.