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CBA Of Kalabagh Dam Project. UZAIR KAMAL Mohsin Murad MAJID KHAN. Kalabagh Dam. InTRODUCTION. Major Power Project Of The Country 92 miles downstream the confluence of Kabul and Indus Rivers
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CBA Of Kalabagh Dam Project UZAIR KAMAL Mohsin Murad MAJID KHAN
Kalabagh Dam InTRODUCTION • Major Power Project Of The Country • 92 miles downstream the confluence of Kabul and Indus Rivers • 260 ft high structure and would create a reservoir 6.1 million acres feet (MAF) of usable storage • About 11,200 GWh, generated by hydro power plant of 2400 MW capacity • Estimated Cost Is Around US $5.153 billion
Kalabagh Dam Cba Of Dam Projects A cost-benefit analysis (CBA) is an economic evaluation technique. It can be used to appraise whether a dam project is worth undertaking • Define a referent group. • Select a portfolio of alternative projects. • Identify potential (physical) impacts of the project. • Predict quantitative impacts over the life of the project. • Monetize all impacts. • Discount for time to find present values. • Sum: Add up benefits and costs. • Perform sensitivity analysis. • Recommend the alternative with the largest net social welfare • value.
Kalabagh Dam Referent Group • Group of individuals whose welfare will be accounted for when assessing the cost and benefit of a project. • Not always the people affected by the project. • But in Pakistan these projects are undertaken from a national perspective considering the people of all the provinces. • Hence the referent group will be the entire population.
Potential Impacts of a Dam Project Impacts Negative Impacts Positive Impacts • Physical costs • Resettlement cost • Risk of dam failure • Land acquisition • Externalities • Hydroelectric power • Irrigation water • Reduction of flood losses and seawater intrusion damage • Municipal and industrial • water supply • Net benefits to/from fishery & recreational facilities • River navigation Kalabagh Dam Potential Impacts Physical impacts are composed of construction, operation and maintenance, mitigation and decommissioning costs.
Kalabagh Dam Quantitative Impacts • Once all impacts have been identified, analysts have to quantify them into physical terms. • Useful economic life of over 50 years, without requiring any major replacement of machines and E&M equipment
Kalabagh Dam Monetizing Impacts
Kalabagh Dam Cont..
Kalabagh Dam Present Value
Kalabagh Dam Costs & Benefits • The total project cost at June 1998 price level, including contingencies, price escalation and interest during construction, is estimated as US$ 5,700 million. • The project will pay back its investment cost in a period of less than 10 years, as projected project annual benefits are US $ 628.18 Million
Kalabagh Dam Alternatives • The alternatives to Kalabagh Dam are: • Raising water level in Mangla dam to offset the effect of silting. • A de-silted Tarbela would yield the same irrigation benefits as Kalabagh, but at one-seventh the cost in net present value terms • A thermal power plant of equivalent capacity to Kalabagh were constructed, the cost would still be lower by one-third