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Comparative Evaluation of Projects Effectiveness. Conclusions

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10.7. Comparative Evaluation of Projects Effectiveness. Conclusions

The comparative evaluation of the effectiveness of water-protective measures for the five Hot Spots was based on such aggregative indicators as socio-economic coefficient, cost-benefit coefficient and others (Table 10.16.).

The socio-economic coefficient takes into account the impact of the Hot Spot on recipients due to pollution of the water bodies, which results in incremental costs for the treatment of the water consumed by water users (population, industry, agriculture and industrial fishing); decreases in the quality of arable land; and effects on public health leading to other incremental costs, etc.

Defining value in evaluation of effectiveness of projects is assigned to cost-benefit coefficient, taking into account the payback period and total investment in realization of the project.

Calculation of the socio-economic coefficient (ΣKse)* is based on professional judgment of various factors.

The results of calculations on effective costs in water-protective measures for five projects are presented in

Table 10.16 : Estimation of Effectiveness of Water Protective Measures Taking into Account Social and Economic Factor.

No. of Hot Spot

Name of the Project

Total weighted  score (social and economic factor)

Coefficient of ranking, Кse

Damage averted

ΔU (thousand roubles).

Reduced costs, ΔC

(thousand roubles).

Coefficient of effictiveness of water protective measures taking into account social and economic factor Eef

DU/DC*Кse

1

Smolensk Gorvodokanal

1.57152

1.1

6961

4200

1.83

2

Briansk Inter-District Engineering services

1.54141

1.06

20 410

37 800

0.57

3

Novozybkov Inter-district Engineering Services

1.45133

1.02

514

2406

0.22

4

Kursk Vodokanal

1.45460

1.04

2848

5854

0.51

5

Vorsklitsa

1.56510

1.08

14500

1400

1.12

 

 

Among the Hot Spots under consideration, Hot Spot 1 Smolensk Gorvodokanal appears the most preferable in terms of cost effectiveness for the implementation of water-protective measures.  The value of Eef = 1.83.  The closest to Smolensk Gorvodokanal by economic indicators is Hot Spot 5 (Vorsklitsam).  Next are Hot Spots 2, 4 and 3, which are “Briansk inter-district engineering services”, Kursk Vodokanal and Novozybkov Inter-district Engineering Services.

In addition to the general economic indicators, it should be noted that realization of the water-protective measures for Smolensk Vodokanal will enable the elimination of untreated effleunt discharge to the Dnipro, substantially reducing the operation costs.  Overall, it will ensure reduced pollution of the Dnipro River within the trans-boundary section of the Russian Federation – Republic of Belarus, improved local ecological and social conditions, and improved quality of municipal services and life standards for the population.

 

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