Costs
The table below gives an overview of the costs estimates for the project site and basin. Note that these estimates are all very indicative and based on currently available data.
For the project, it is assumed that the investments costs are spread over two years at the beginning of the project period. Operational costs (item 10) are annual.
Table. Cost estimates and assumptions
No. | Cost item | Estimate project site | Estimate basin |
1 | Acquisition of land | 500 ha at USD 13,000/ha | Assume 50% of highly suitable land needs to be purchased, the remaining 50% is already owned by the government.[1] |
Total USD 6,500,000 | 24,640 ha at USD 13,000/ha | ||
Total USD 320,450,000 | |||
2 | Reconnecting low-lying areas with the main river | Not required at the site as it is already flooding | At basin level, some sites may require some groundwork. Assume per 1000 ha, a canal of 2 meter width, 1 meter depth and 1,000 meter length needs to be created at USD 2/m3. |
Total USD 197,200 | |||
3 | Protect and enhance river corridors | No costs, part of overall planning and management costs, see 5 | No costs, part of overall planning and management costs, see 5 |
4 | Creating / maintaining habitat connectivity | No costs, part of overall planning and management costs, see 5 | No costs, part of overall planning and management costs, see 5 |
5 | Install or designate buffer zones | Planning, management, training, and engagement costs are assumed to be USD 200,000 for the site | Planning, management, and training costs are assumed to be USD 200,000 per project area of 1000 ha |
Total USD 200,000 | Total USD 9,860,000 | ||
6 | Plant / introduce flooded forest species | Plant in 50% of the acquired land (250 ha). A tree costs USD 1; per ha 2,500 trees are required and people can plant about 75 trees per day for USD 10/day. | Same assumptions as for the project site |
Total USD 707,500 | Total USD 36,975,000 | ||
7 | Install zones designated for natural fish nurseries | No costs, part of overall planning and management costs, see 5 | No costs, part of overall planning and management costs, see 5 |
8 | Strategy for ecotourism development | Costs of building a simple visitor centre and developing an ecotourism strategy, brochures, etc. is estimated to be USD 30,000 | Ecotourism could not be implemented at all sites, as the total market demand for ecotourism is limited and not all sites are suitable, e.g., in terms of accessibility. In total it is assumed that there would be 5 additional ecotourism sites. |
Total USD 150,000 | |||
9 | Training and support to help households move to more sustainable livelihoods | Training, support, and engagement costs for households are assumed to be USD 200,000 for the site | Training, support, and engagement costs for households are assumed to be USD 200,000 per project area of 1000 ha |
Total USD 200,000 | Total USD 9,860,000 | ||
10 | Initiate payment for ecosystem services to (former) landowners | Setting up a system for payments for ecosystem services (carbon credits, biodiversity credits or other) requires a certain scale to cover fixed costs. These costs are currently unknown. | Setting up a system for payments for ecosystem services (carbon credits, biodiversity credits or other) requires a certain scale to cover fixed costs. These costs are currently unknown. |
11 | Limiting activities / enforcement | Enforcement costs are estimated at about USD 700 / month / 6 communes or about USD 1,400 / year / commune; the project site has 7 communes, so total USD 9,800 | For the basin it is assumed the project would cover 100 villages |
Total USD 140,000 | |||
Total Capital Expenditure | USD 7,637,500 | USD 377,492,200 | |
Total Operational Expenditure | USD 9,800 / year | USD 140,000 / year |
- 1 Even if land would not need to be purchased (e.g., due to unclear or missing land ownership documents), still households would need to be provided with alternative livelihoods if they were to lose their agricultural land.