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Comparative Analysis of Effectiveness of Projects - Conclusions
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10.7. Comparative Analysis of Effectiveness of Projects - Conclusions
The comparative analysis of the effectiveness of the water-protective projects for the five Hot Spots was based on such aggregative indicators as socio-economic coefficient, coefficient of effective costs, etc. (Table 10.23). The defining value in the analysis of the projects effectiveness was assigned to the coefficient of effective costs. The payback time and total investment for project realization were also taken into consideration.
Table 10.23 : Cost Effective Analysis of Water-Protective Measures for the Five Projects
|
Project |
Total weighted score or socio- economic coefficient |
Ranking coefficient (Cse) |
Net economic effect (∆U), $US thou. |
Reduced cost of water- protective measures (∆C), $US thou. |
Coefficient of effective investment in water-protective measures (Eef) |
|
|
1 |
Retchitsa Vodokanal |
2.575 |
1.08 |
561 |
814 |
0.75 |
|
2 |
Minskvodokana |
2.781 |
1.10 |
1377 |
1870 |
0.76 |
|
3 |
Mogilev Gorvodokanal |
1.957 |
1.02 |
464 |
786 |
0.60 |
|
4 |
Gomel Vodokanal |
2.46 |
1.06 |
1186 |
2166 |
0.57 |
|
5 |
Mozyr Refinery, wastewater treatment plant |
2.012 |
1.04 |
110 |
178 |
0.68 |
Among the considered projects, taking into account only the economic factors, it appears feasible to choose the “Retchitsa Vodokanal” and “Minsk Vodokanal” projects as the best in terms of their effective investment in water-protective measures. Among these two projects, the “Retchitsa Vodokanal” project is more preferable - under the conditions of relatively close effective costs of water-protective measures it requires a considerably lower investment to achieve the end results. However at present the “Retchitsa Vodokanal” and “Minsk Vodokanal” enterprises have been experiencing financial difficulties. In addition there are no sufficient economic arguments in favour of repayment of credit in due time. Therefore these enterprises cannot be recommended for the pre-investment inspection.
The analyzed projects “Mogilev Gorvodokanal” and “Gomel Vodokanal” also cannot be recommended for the pre-investment inspection because of the relatively low coefficient of efficiency of the investment in water protective measures (0.60 and 0.57 accordingly).
Taking into account all the parameters (financial, economic, social and the higher index of economic efficiency of investments in water-protective measures), the most preferable among all of the considered projects is Project 5: Mozyrsky petroleum refinery (wastewater treatment facilities).
Realization of the water-protective measures for this project will ensure achievement of the overall goal, that is, reduced pollution of the Dnipro Basin waters and respectively reduced economic damage; it will provide an opportunity to improve the local social situation through the creation of additional jobs and it will improve the quality of utility services and urban population living conditions. Moreover, the lower level of investment (with its sufficiently high social and economic efficiency) makes Project 5 more attractive.
