Assumptions

1 The calclation year 2012

2 Occurance of flood every year considering loses in 2000 and 2007 floods
Area of agriculture land eroded in the occurance of flood
from Laxmanpur to Fattepur on both sides 50
3 Average yield of paddy in flood prone area 1.4
4 Damage of standing crop in each year of inundated area 1,850
5 Average farm gate price of agricultural production rate NRs 18,750
6 Value of agricultural land NRs 500,000
7 Value of forest NRs 150,000
8 No of affected household 2,127
9 No of cattle affected or lost 600
Direct Benefit
1 Losses of cultivated lands
a) Loss due to erosion 50
b) Average value of land NRs 500,000
c) Total benefit per year NRs 25,000,000
2 Losses in value of cultivated land due to sand deposits
a) Average area of land covered by sand 10
b) Estimated loss in value of sand deposited land NRs 100,000
c) Total loss per year NRs 1,000,000
3 Losses of sanding crops production due to erosion of cultivated land
a) Total estimated production loss of sanding crops (50 ha) 70
b) Total value of production NRs 1,312,500
c) Invested by farmers for production of sanding crops @40% of the NRs 525,000
total value of crops
d) Total loss NRs 787,500
4 Losses due to damage of sanding crops by flood
a) Total quantity of products as 50% inundated land swept and
completely damaged 925
b) Total loss (925x1.5x10000) NRs 24,281,250
5 Losses due to decrease in production from sand covered land
a) Total area 50
b) Estimated decrease in production value (assuming 30% of normal value 0.98
c) Total loss (0.98x50x10000) NRs 918,750

6 Benefit due to protection of uncultivated (forest etc.)-damage by floods

a) Total area 10
b) Value of land (including trees) 150,000
c) Total benefit for that year flood occurance NRs 1,500,000

7 Benefit from river side plantation (timber, fire wood) after NRs 10,000,000
plantation (assuming 200 ha plantation @ NRs 50000/ha)
8 Benefit from protection of cattle (average cost of cattle @ NRs NRs
1500 per no affected cattle lost)
9 Benefit due to protection of building and other infrastructures
a) Value of buildings and other infrastructures NRs

10 Actual loss in production when the land out side of embankment NRs (328,125)
deprived from getting clayee mineral flood water @ 12.5% in 200
ha
11 Loss due to damages of cerials stored in the house
(Average per household having 500kg of cerials from 2127 no of
affected house hold)
Total cerials loss NRs

Total benefit per occurance of flood (annual benefit) NRs 63,159,375

November

ha
MT/ha
ha
per MT
per ha
per ha
No
No

ha
per ha

ha
per ha

MT

ha

ha
MT/ha

ha
per ha
 Summary of Project Cost
West Rapti Embankment and Protection Works
S.N Type Description Total Amount NRs
Left Embankment Right Embankment
I Works
1 A Preliminary 1,000,000.00 500,000.00

2 B Land
a Permanent Land Acquisition 52,500,000.00 32,000,000.00
b Crop/Borrow Pit Compensation 10,000,000.00 6,200,000.00

3 C Works 924,485,499.23 467,628,403.31

4 K Building 4,000,000.00 3,000,000.00

5 L Earthwork 182,370,403.39 130,181,206.34

6 M Plantation 550,000.00 350,000.00

7 O Miscellaneous 1,150,000.00 750,000.00

8 P Maintenance 550,000.00 450,000.00

9 Q Spl T & P 6,500,000.00 5,500,000.00

10 R Communication 600,000.00 450,000.00

11 Y Losses in stock @ 0.25% of I-Works except A,B,Q,R 2,782,764.76 1,505,899.02

12 Z Emergency protection measures @ 3% of I-works 33,393,177.08 18,070,788.29

A,B,Q,R
Total of I-Works 1,219,881,844.46 666,586,296.97
Add 3% contingencies and 2% for work charge 57,494,092.22 31,119,314.85
establishment on I-Works except A,B and Q
Physical contingency for price escalation @ 10% of I- 114,709,907.97 62,088,039.79
Works except A,B,Q,Y
II Establishment
Establishment charges @ 8% of I-Works except 91,942,547.56 49,754,903.76
A,B,Q,R

III Tools and Plants

1% of I-Works 12,198,818.44 6,665,862.97

IV Indirect Charges
1 Audit and A/C charges @ 1% of I-works except 11,470,990.80 6,208,803.98
A,B,Q,Y
2 Land acquisition charges @ 6.25% of B-land 3,906,250.00 2,387,500.00
Sub-Total 15,377,240.80 8,596,303.98
Grand Total 1,511,604,451.45 824,810,722.32
VAT @13 % 166,957,774.21 90,628,225.96
Total Project Cost including VAT NRs 1,678,562,225.66 915,438,948.28
Total Project Cost excluding VAT NRs 1,511,604,451.45 824,810,722.32
mount NRs
Total Cost (NRs)

1,500,000.00

84,500,000.00
16,200,000.00

1,392,113,902.55

7,000,000.00

312,551,609.73

900,000.00

1,900,000.00

1,000,000.00

12,000,000.00

1,050,000.00

4,288,663.78

51,463,965.37

1,886,468,141.42
88,613,407.07

176,797,947.76

141,697,451.31

18,864,681.41

17,679,794.78

6,293,750.00
23,973,544.78
2,336,415,173.76
 257,586,000.18
2,594,001,173.94
2,336,415,173.76
 Economic Analysis

Name of Project: West Rapti Embankment and Protection Works Benefit per Year NRs:
Construction Financial Cost NRs: 2,594,001,174 Maintenance Cost NRs:
Construction Economic Cost NRs: 2,464,301,115 Economic Maintenance Co

S.N Year Construction Maintenance Total Cost Benefit Discount Factors

cost NRs'000 cost NRs'000 NRs NRs'000
2,464,301 23,346 631,594 10% 16% 17%
1 492,860 492,860 - 0.909 0.862 0.855
2 492,860 492,860 - 0.826 0.743 0.731
3 492,860 492,860 - 0.751 0.641 0.624
4 492,860 492,860 - 0.683 0.552 0.534
5 492,860 492,860 315,797 0.621 0.476 0.456
6 - 11,673 11,673 631,594 0.564 0.410 0.390
7 - 23,346 23,346 631,594 0.513 0.354 0.333
8 - 23,346 23,346 631,594 0.467 0.305 0.285
9 - 23,346 23,346 631,594 0.424 0.263 0.243
10 - 23,346 23,346 631,594 0.386 0.227 0.208
11 - 23,346 23,346 631,594 0.350 0.195 0.178
12 - 23,346 23,346 631,594 0.319 0.168 0.152
13 - 23,346 23,346 631,594 0.290 0.145 0.130
14 - 23,346 23,346 631,594 0.263 0.125 0.111
15 - 23,346 23,346 631,594 0.239 0.108 0.095
16 23,346 23,346 631,594 0.218 0.093 0.081
17 - 23,346 23,346 631,594 0.198 0.080 0.069
18 - 23,346 23,346 631,594 0.180 0.069 0.059
19 - 23,346 23,346 631,594 0.164 0.060 0.051
20 - 23,346 23,346 631,594 0.149 0.051 0.043
Total
B/C Ratio at 10.00% =
B/C Ratio at 16.00% =
B/C Ratio at 17.00% =
EIRR 17.47%
nomic Analysis

Benefit per Year NRs: 63,159,375

Maintenance Cost NRs: 25,940,012
Economic Maintenance Cost NRs: 23,346,011

Present Value (PV) of Rs 000

Cost at Benefit at
10% 16% 17% at 10% 16% 17%
448,055 424,880 421,248 - - -
407,322 366,275 360,041 - - -
370,293 315,755 307,727 - - -
336,630 272,202 263,015 - - -
306,027 234,657 224,799 196,085 150,355 144,038
6,589 4,791 4,551 356,518 259,233 246,220
11,980 8,261 7,779 324,107 223,477 210,444
10,891 7,121 6,649 294,643 192,652 179,867
9,901 6,139 5,683 267,857 166,079 153,732
9,001 5,292 4,857 243,507 143,172 131,395
8,183 4,562 4,151 221,370 123,424 112,304
7,439 3,933 3,548 201,245 106,400 95,986
6,763 3,390 3,032 182,950 91,724 82,039
6,148 2,923 2,592 166,318 79,073 70,119
5,589 2,520 2,215 151,199 68,166 59,931
5,081 2,172 1,893 137,453 58,764 51,223
4,619 1,873 1,618 124,957 50,658 43,780
4,199 1,614 1,383 113,598 43,671 37,419
3,817 1,392 1,182 103,271 37,647 31,982
3,470 1,200 1,010 93,882 32,455 27,335
1,971,997 1,670,951 1,628,974 3,178,961 1,826,950 1,677,814
1.61
1.09 155999.36
1.03 48840.29
 Economic Analysis

Name of Project: West Rapti Embankment and Protection Works Benefit per Year NRs: 63,159,375
Construction Financial Cost NRs: 2,594,001,174 Maintenance Cost NRs: 25,940,012
Construction Economic Cost NRs: 2,464,301,115 Economic Maintenance Cost NRs: 23,346,011

S.N Year Construction Maintenance Total Cost Benefit Discount Factors Present Value (PV) of Rs 000
cost NRs'000 cost NRs'000 NRs NRs'000 Cost at Benefit at
2,464,301 23,346 631,594 10% 18% 19% 10% 18% 19% at 10% 18% 19%
1 492,860 492,860 - 0.909 0.847 0.840 448,055 417,678 414,168 - - -
2 492,860 492,860 - 0.826 0.718 0.706 407,322 353,965 348,041 - - -
3 492,860 492,860 - 0.751 0.609 0.593 370,293 299,970 292,471 - - -
4 492,860 492,860 - 0.683 0.516 0.499 336,630 254,212 245,774 - - -
5 492,860 492,860 315,797 0.621 0.437 0.419 306,027 215,434 206,533 196,085 138,038 132,334
6 - 11,673 11,673 631,594 0.564 0.370 0.352 6,589 4,324 4,111 356,518 233,962 222,411
7 - 17,510 17,510 631,594 0.513 0.314 0.296 8,985 5,497 5,181 324,107 198,273 186,900
8 - 23,346 23,346 631,594 0.467 0.266 0.249 10,891 6,211 5,805 294,643 168,028 157,059
9 - 23,346 23,346 631,594 0.424 0.225 0.209 9,901 5,263 4,879 267,857 142,397 131,982
10 - 23,346 23,346 631,594 0.386 0.191 0.176 9,001 4,461 4,100 243,507 120,675 110,909
11 - 23,346 23,346 631,594 0.350 0.162 0.148 8,183 3,780 3,445 221,370 102,267 93,201
12 - 23,346 23,346 631,594 0.319 0.137 0.124 7,439 3,204 2,895 201,245 86,667 78,320
13 - 23,346 23,346 631,594 0.290 0.116 0.104 6,763 2,715 2,433 182,950 73,447 65,815
14 - 23,346 23,346 631,594 0.263 0.099 0.088 6,148 2,301 2,044 166,318 62,243 55,307
15 - 23,346 23,346 631,594 0.239 0.084 0.074 5,589 1,950 1,718 151,199 52,748 46,476
16 23,346 23,346 631,594 0.218 0.071 0.062 5,081 1,652 1,444 137,453 44,702 39,056
17 - 23,346 23,346 631,594 0.198 0.060 0.052 4,619 1,400 1,213 124,957 37,883 32,820
18 - 23,346 23,346 631,594 0.180 0.051 0.044 4,199 1,187 1,019 113,598 32,104 27,580
19 - 23,346 23,346 631,594 0.164 0.043 0.037 3,817 1,006 857 103,271 27,207 23,176
20 - 23,346 23,346 631,594 0.149 0.037 0.031 3,470 852 720 93,882 23,057 19,476
21 - 23,346 23,346 631,594 0.135 0.031 0.026 3,155 722 605 85,348 19,540 16,366
22 - 23,346 23,346 631,594 0.123 0.026 0.022 2,868 612 508 77,589 16,559 13,753
23 - 23,346 23,346 631,594 0.112 0.022 0.018 2,607 519 427 70,535 14,033 11,557
24 - 23,346 23,346 631,594 0.102 0.019 0.015 2,370 440 359 64,123 11,892 9,712
25 - 23,346 23,346 631,594 0.092 0.016 0.013 2,155 373 302 58,294 10,078 8,161
26 - 23,346 23,346 631,594 0.084 0.014 0.011 1,959 316 254 52,994 8,541 6,858
27 - 23,346 23,346 631,594 0.076 0.011 0.009 1,781 268 213 48,177 7,238 5,763
28 - 23,346 23,346 631,594 0.069 0.010 0.008 1,619 227 179 43,797 6,134 4,843
29 - 23,346 23,346 631,594 0.063 0.008 0.006 1,472 192 150 39,815 5,198 4,070
30 - 23,346 23,346 631,594 0.057 0.007 0.005 1,338 163 126 36,196 4,405 3,420
Total 1,990,325 1,590,890 1,551,974 3,755,828 1,647,316 1,507,329
B/C Ratio at 10.00% = 1.89
B/C Ratio at 18.00% = 1.04 56425.84 (PV)
B/C Ratio at 19.00% = 0.97 -44644.83 (PV)
EIRR 18.55%