PDF CBA_summer_assignment.pdf 582 57 47 OXI CUS .. 0076. F TT O CBA_summer_assignment.pdf X CBA_Lecture_0..ide_revised.pdf + M CBA for Policy Decision Making Summer Semester 2021 Assignment The purpose of this assignment is to encourage students to perform CBA at an abstract level. Frist, choose one of the two following hypothetical government projects. Then, you need to write down your thoughts about the following. 1) Describe the benefits or costs of the project, except for the physical costs specified in the project plan, and logically explain how each item can be considered part of the project's value. 2) Describe the methodology for estimating the socio-economic value of the described benefit/cost items and explain why each methodology is appropriate and what limitations it has. 3) Explain how NPV or BC-ratio value will be derived when implementing this project by integrating the benefit and cost items you answered together with the physical costs in the project plan. 4) Beyond quantitative analysis, outline the need to promoteon-promote the project considering the overall socio-economic benefits and costs you have discovered. Note that it is not necessary to calculate the specific benefit/cost items and is sufficient to describe them qualitatively. The amount of assignment answers is NOT TO EXCEED 5 PAGES under the given form (please check another attached file for the form). The due date of this assignment is 11 August, and after saving the answer file as "CBA_summer_assignment_YOURNAME.docx" (fill in "YOURNAME" part with your actual first name) please send it to the following two e-mail addresses: hkim @kdi.re.kr and tohanskim@gmail.com. W 95% 260C CHIE #8 ~ 9 0 ) A 2# 10:03 2021-08-07HYPOTHETICAL PROJECT I: Agricultural Infrastructure Improvement (Al) Project 1. Purpose of project This project is to facilitate water supply system by installing pumping stations and water channels for drought-prone area near the Han River in South Korea. The fundamental purposes of this project are 1) to solve water shortage problem by maintaining a stable water supply which can improve cropping environment, and 2) to contribute to the soil conservation and environmental improvement. Classification Description Project region Drought-prone area near the Han River Ministry of Agriculture, Food and Rural Affairs & Implementation agency Korea Rural Community Corporation Target area: 2,200ha Developing area (New beneficiary area: 1,600ha, Project Reinforcement area: 600ha) description Number of pumping & scale 3 pumping stations stations summary Irrigation channels 66 channels of 120km Discharge channels 2 channels of 1.4km Project period 2022-2027(6 years) Total project costs KRW 163 billion Financing method Entirely financed by central government 2. Area benefitting from the project Classification New beneficiary area Reinforcement area Region A 540ha 260ha Region B 230ha 160ha Region C 830ha 180ha Total 1,600ha 600ha * New beneficiary area: the area where new water will be supplied through the implementation of this project * Reinforcement area: Among areas that currently receive water through water supply facilities already installed, areas requiring reinforcement due to lack of water in the event of a severe drought occurring every ten years or more3. Details of total project costs Construction Type Amount (KRW million) Pumping stations 17,000 Irrigation channels 40,000 Ancillary expenses 500 A. Construction costs Construction materials 67,000 Other construction costs 2,500 Sub total 127,000 Purchase costs of land 3,500 B. Land Acquisition Costs Compensation for obstruction 1,000 Sub total 9,500 Research and survey 1,600 Project design 2,700 C. Incidental costs Construction supervision 6,500 Project management 1,200 Sub total 12,000 D. Contingencies 14,500 E. Total project costs 163,000 4. Annual expenditures of projects costs (KRW million) 2022 2023 2024 2025 2026 2027 Total 5,000 34,000 34,000 30,000 30,000 30,000 163,000