Cost Benefit Analysis Of Tempisque Bridge

to : costa Rica s pastor of Public kit and caboodle and Transportfrom :Staff analystsubject : testimonial to build tide over over the tempisque riverdate :10 /31 /07The Minister of Public Works and Transport (MOPT ) StudyThe 1992 the Minister of Public Works and Transport (MOPT ) completed a benefit-cost drive for the building of a new yoke over the Tempisque River to connect the province of Guanacaste to San , Jose , Costa Rica s capital . The study economically accounted for the be of constructing and maintenance of the bridge and the cost of refurbishing and maintaining the ferry . It also considered savings in vehicle procedure costs and travel time reduction . The study predicted a 30 increase in the volume of avocation of passengers and freight travelling between Nicoya Peninsula and San Jose based on an pass judgment 30 decrease in travel time upon effect of the new bridgeProblems of the MOPT Benefit-Cost AnalysisUpon the analysis and review of the 1992 MOPT benefit-cost analysis , it was found not to be convincing . The following problems were identified with the study : archetypal , the analysis failed to consider the economic effect on the touring car industry in the Guanacaste province from the consequences of building the Tempisque Bridge . second , the analysis did not consider the effect on the surroundings and the preservation of the Tempisque Conservation Area (ACT ) from building the bridge . deuce-ace the expected increase in economic activities that would introduce industrial projects in the Guanacaste province were not considered neither were the respective gains and losings accounted forFourth , the study did not account for reduced inconvenience and undependableness of the ferry . The ferry did not operate all hours of the solar day , and sometimes did not operate for days due to mechanic problems The reduced reliability of the ferry would increase the expected gains in travel time .

Savings in vehicle operation and travel time costs would also increase since they are deliberate based on expected gain in travel time . Similarly the expectations of 30 increase in the volume of traffic between the Guanacaste province and San Jose that was included in the analysis would be altered since the volume of traffic was calculated based on the fact a one portion change in travel time would cause a one percent change in trafficFinally , the study did not consider the social effect from building the new bridge . It is expected to attract more people to the Guanacaste province and then increase the population and economic wellbeing of the region . new-fashioned people who left the region looking for jobs would return to their familyThe Benefits and costs for Building the Bridge3 .1 Financial Benefit from Building the BridgeBridge Net open Value 424 ,000Internal Rate of Return 12 .38Benefit-Cost Ratio 1 .036Cost of Building the BridgeCosts of Bridge construction 1 ,918 millionCosts of Bridge nutrition 1 .29 million /yearValue of Bridge 2013 1 ,151 million3 .1 .2 Reduction in ferry operation and capital costsRefurbishing Cost 2000...If you want to baffle a full essay, order it on our website: Ordercustompaper.com

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