Project Name : Bahirisen Irrigation Project

Economic costs and conversion factors.

Conversion
Financial cost Economic cost
S.no Items

With C.P &C.T. Without C.P &C.T. factor With C.P &C.T. Without C.P &C.T.

1 Costruction cost

1.1 Civil construction

Total 13401684.65 0.95 12,731,600.42

2 Annual O&M Cost 584,438.00 0.96 561,060.48

3 Labour 500.00 0.75 375.00

4 Bullock pair 500.00 1.00 500.00

Estimated by: Checked by: Forwarded by: Approved by:

 Dawali Khet Irrigation Project

Project Name : Bahirisen Irrigation Project

Conversion of Financial Cost into Economic Cost

S.no. Item Financial Cost Conversion factor Economic cost

1 Construction Cost 13401684.65 0.95 12731600.4175

2 Maintanance Cost 584438.00 0.96 561060.48

Total 13292660.8975

Estimated by: Checked by: Forwarded by: Approved by:

 Crop budget for Future "without Project"Situtation.

Project Name : Bahirisen Irrigation Project

Particulars Unit Maize Wheat

A.Gross Value Production

1.Price.

PRICE on Hill road system or at major market Nrs/t 20000.00 25000.00

Transport(porterage)cost from road to scheme. Nrs/t 500.00 500.00

Economic farm gate price Nrs/t 20500.00 25500.00
2.Yeild T/ha 2.00 1.80
Gross Value Nrs/ha 41000.00 45900.00
B.COST OF PRODUCTION
i.Standard input costs
1.Labour(md/ha) md/ha 100 100
PRICE(Rs/md) Rs./md 375.00 375.00
VALUE(Rs/ha) Nrs. 37500.00 37500.00
2.Animal lab.(Bpd/ha) bpd/ha 32.00 20.00
PRICE(Rs/Bpd) Rs./bpd 500 500
VALUE(Rs/ha) Nrs. 16000.00 15000.00
3.PESTICIEDS(Rs/ha) Rs./ha 0.00 300.00
**Total standard input cost Rs./ha 53500.00 52800.00

ii.Seed cost
a.Seed rate(Kg/ha) Kg/ha 25 22
PRICE(Rs/kg) Rs/kg 80.00 80.00
Total seed cost(Rs/ha) Nrs/ha 2000.00 1760.00
III.Ferttilizer costs
1.Chemical Fertilizer
N(kg/ha) Kg/ha 0.00 0.00
PRICE(Cost at roadhead) Rs/kg 0.00 0.00
Transportation cost Rs/kg 0.00 0.00
PRICE Rs/kg 0.00 0.00
VALUE(Rs/ha) Nrs/ha 0.00 0.00
P(kg /ha) Kg/ha 0.00 0.00
PRICE(Cost at roadhead) Rs/kg 0.00 0.00
Transportation cost Rs/kg 0.00 0.00
PRICE Rs/kg 0.00 0.00
VALUE(Rs/ha) Nrs/ha 0.00 0.00
K(kg /ha) Kg/ha 0.00 0.00
PRICE(Cost at roadhead) Rs/kg 0.00 0.00
Transportation cost Rs/kg 0.00 0.00
PRICE Rs/kg 0.00 0.00
VALUE(Rs/ha) Nrs/ha 0.00 0.00
2. Compost(Doko/Ha) Doko/ha 300.00 200.00
PRICE Rs/Doko 20.00 20.00
VALUE(Rs/ha) Nrs/ha 6000.00 4000.00
Total fertilizer costs 6000.00 4000.00
Sub total costs 61500.00 58560.00
iv.Sacks,tools other miscellaneous cost 5% 3075 2928
TOTAL COSTS. 64575.00 61488.00
NET RETURN -23575.00 -15588.00

Estimated by: Checked by: Forwarded by: Approved by:

Crop budget for Future "without Project"Situtation.

Remarks

Source: NISP
Guidelines. Rates
are converted for
1$=NRs. 74.75

Estimated by: Checked by: Forwarded by: Approved by:

 Crop budget for Future "with Project"Situtation.

Project Name : Bahirisen Irrigation Project

Potato Vegetable Vegetable

Particulars Unit Remarks
(Monsoon) (winter) (Summer)
A.Gross Value Production
1.Price.

PRICE on Hill road system or at major market Nrs/t 25000.00 30000.00 30000.00
Transport(porterage)cost from road to
scheme. Nrs/t 500.00 500.00 500.00
Economic farm gate price Nrs/t 25500.00 30500.00 30500.00
2.Yeild t/ha 10.00 9.00 9.00
Gross Value Nrs/ha 255000.0 274500.0 274500.0
B.COST OF PRODUCTION
i.Standard input costs
1.Labour(md/ha) md/ha 250 250 250
PRICE(Rs/md) Rs./md 375.00 375.00 375.00
VALUE(Rs/ha) Nrs. 93750.00 93750.00 93750.00
2.Animal lab.(Bpd/ha) bpd/ha 55.00 55.00 55.00
PRICE(Rs/Bpd) Rs./bpd 500 500 500
VALUE(Rs/ha) Nrs. 27500.00 27500.00 27500.00
3.PESTICIEDS(Rs/ha) Rs./ha 900.00 900.00 900.00
**Total standard input cost Rs./ha 122150.00 122150.00 122150.00
ii.Seed cost
a.Seed rate(Kg/ha) Kg/ha 700 700 700
PRICE(Rs/kg) Rs/kg 25.00 25.00 25.00
Total seed cost(Rs/ha) Nrs/ha 17500.00 17500.00 17500.00
III.Ferttilizer costs
1.Chemical Fertilizer
N(kg/ha) Kg/ha 100.00 100.00 100.00
PRICE(Cost at roadhead) Rs/kg 50.00 50.00 50.00
Transportation cost Rs/kg 0.50 0.50 0.50
PRICE Rs/kg 50.50 50.50 50.50
VALUE(Rs/ha) Nrs/ha 5050.00 5050.00 5050.00
P(kg /ha) Kg/ha 38.00 38.00 38.00
PRICE(Cost at roadhead) Rs/kg 55.00 55.00 55.00
Transportation cost Rs/kg 0.50 0.50 0.50
PRICE Rs/kg 55.50 55.50 55.50
VALUE(Rs/ha) Nrs/ha 2109.00 2109.00 2109.00
K(kg /ha) Kg/ha 60.00 60.00 60.00
PRICE(Cost at roadhead) Rs/kg 40.00 40.00 40.00
Transportation cost Rs/kg 0.50 0.50 0.50
PRICE Rs/kg 40.50 40.50 40.50
VALUE(Rs/ha) Nrs/ha 2430.00 2430.00 2430.00
2. Compost(Doko/Ha) Doko/ha 200.00 200.00 200.00
PRICE Rs/Doko 20.00 20.00 20.00
VALUE(Rs/ha) Nrs/ha 4000.00 4000.00 4000.00
Total fertilizer costs 13589.00 13589.00 13589.00
Sub total costs 153239.00 153239.00 153239.00
iv.Sacks,tools other miscellaneous cost 5% 7661.95 7661.95 7661.95
TOTAL COSTS. 160900.95 160900.95 160900.95
NET RETURN 94099.05 113599.05 113599.05

Estimated by: Checked by: Forwarded by: Approved by:

 Calculation of Benefit for E I R R Computation
Project Name : Bahirisen Irrigation Project Net Command area: Ha 20.00
Project cost : 13401684.65
Without Project (A) With Project (B)
Irrig. Area, Yield Benefit Irrig.St Yield,
Crop Total Benefit(Rs) Crop Area,ha Benefit, Rs/ha Total Benefit(Rs)
Status ha (t/ha) (Rs/ha) atus t/ha
Maize NI 8.00 1.80 (23,575.00) (188,600.00) FI 0.00 0.00 - -
Wheat NI 6.00 1.80 (15,588.00) (93,528.00) Potato(monsoon) FI 20.00 10.00 94,099.05 1,881,981.00
Veg(win) NI 0.00 7.00 (5,425.00) - Veg(win) FI 9.00 9.00 113,599.05 1,022,391.45
Veg(sum) NI 0.00 7.00 (5,425.00) - Veg(sum) FI 5.00 9.00 113,599.05 567,995.25
FI 1.00 1.00 - -

Grand total (A) (282,128.00) Grand total (B) 3,472,367.70

Net incremental Benefit=( B ) - ( A ) = Rs. 3,754,495.70

Net incremental Benefit per year per hec = Rs. 187,724.79

Project cost per hec. = Rs. 670,084.23
EIRR % = 18.27% %

Estimated by: Checked by: Forwarded by: Approved by:

 ECONOMIC ANALYSIS

Project Name : Bahirisen Irrigation Project

Construction cost = Rs. 12731.6

Benefit per year = Rs. 3754.50 (Rs in Thousand)

NPV NPV
Construction Maintenance Discount NPV AT NPV cost Discount NPV AT NPV cost
Year Benifit Cash flow benefit AT benefit AT
cost cost at 10% 10% AT 10% at 12% 12% AT 12%
10% 12%

1 5092.64 0.00 0.00 -5092.64 0.909 -4629.67 0.00 4629.67 0.893 -4547.00 0.00 4547.00

2 7638.96 0.00 0.00 -7638.96 0.826 -6313.19 0.00 6313.19 0.797 -6089.73 0.00 6089.73

3 561.06 1501.80 940.74 0.751 706.79 1128.32 421.53 0.712 669.59858 1068.95 399.35

4 561.06 2252.70 1691.64 0.683 1155.41 1538.62 383.21 0.636 1075.0659 1431.63 356.56

5 561.06 3379.05 2817.99 0.621 1749.75 2098.12 348.37 0.567 1599.0007 1917.36 318.36

6 561.06 3754.50 3193.44 0.564 1802.61 2119.31 316.70 0.507 1617.8937 1902.14 284.25

7 561.06 3754.50 3193.44 0.513 1638.74 1926.65 287.91 0.452 1444.5479 1698.34 253.80

8 561.06 3754.50 3193.44 0.467 1489.76 1751.50 261.74 0.404 1289.7749 1516.38 226.60

9 561.06 3754.50 3193.44 0.424 1354.33 1592.27 237.94 0.361 1151.5848 1353.91 202.32

10 561.06 3754.50 3193.44 0.386 1231.21 1447.52 216.31 0.322 1028.2007 1208.85 180.65

11 561.06 3754.50 3193.44 0.350 1119.28 1315.93 196.65 0.287 918.03632 1079.33 161.29

12 561.06 3754.50 3193.44 0.319 1017.53 1196.30 178.77 0.257 819.67528 963.69 144.01

13 561.06 3754.50 3193.44 0.290 925.02 1087.54 162.52 0.229 731.85293 860.43 128.58

14 561.06 3754.50 3193.44 0.263 840.93 988.68 147.74 0.205 653.44012 768.24 114.80

15 561.06 3754.50 3193.44 0.239 764.48 898.80 134.31 0.183 583.42868 685.93 102.50

16 561.06 3754.50 3193.44 0.218 694.98 817.09 122.10 0.163 520.91846 612.44 91.52

17 561.06 3754.50 3193.44 0.198 631.80 742.81 111.00 0.146 465.10577 546.82 81.72

18 561.06 3754.50 3193.44 0.180 574.37 675.28 100.91 0.130 415.27301 488.23 72.96

19 561.06 3754.50 3193.44 0.164 522.15 613.89 91.74 0.116 370.77947 435.92 65.14

20 561.06 3754.50 3193.44 0.149 474.68 558.08 83.40 0.104 331.0531 389.22 58.16

21 561.06 3754.50 3193.44 0.135 431.53 507.35 75.82 0.093 295.58312 347.51 51.93

22 561.06 3754.50 3193.44 0.123 392.30 461.22 68.92 0.083 263.9135 310.28 46.37

8574.80 23465.29 14890.49 5607.9944 19585.61 13977.62

EIRR= 18.27%

Benefit/Cost ratio at 10%= 1.58

Benefit/Cost ratio at 12%= 1.40

Estimated by: Checked by: Forwarded by: Approved by:

 SENSITIVITY ANALYSIS - 1
(By increasing 20% Construction Cost)

Project Name : Bahirisen Irrigation Project

Construction cost = Rs. 15277.9

Benefit per year = Rs. 3754.50 (Rs in Thousand)

NPV NPV
Construction Maintenance Discount NPV AT NPV cost Discount NPV AT NPV cost
Year Benifit Cash flow benefit AT benefit AT
cost cost at 10% 10% AT 10% at 12% 12% AT 12%
10% 12%

1 6111.17 0.00 0.00 -6111.17 0.909 -5555.61 0.00 5555.61 0.893 -5456.40 0.00 5456.40

2 9166.75 0.00 0.00 -9166.75 0.826 -7575.83 0.00 7575.83 0.797 -7307.68 0.00 7307.68

3 561.06 1501.80 940.74 0.751 706.79 1128.32 421.53 0.712 669.59858 1068.95 399.35

4 561.06 2252.70 1691.64 0.683 1155.41 1538.62 383.21 0.636 1075.0659 1431.63 356.56

5 561.06 3379.05 2817.99 0.621 1749.75 2098.12 348.37 0.567 1599.0007 1917.36 318.36

6 561.06 3754.50 3193.44 0.564 1802.61 2119.31 316.70 0.507 1617.8937 1902.14 284.25

7 561.06 3754.50 3193.44 0.513 1638.74 1926.65 287.91 0.452 1444.5479 1698.34 253.80

8 561.06 3754.50 3193.44 0.467 1489.76 1751.50 261.74 0.404 1289.7749 1516.38 226.60

9 561.06 3754.50 3193.44 0.424 1354.33 1592.27 237.94 0.361 1151.5848 1353.91 202.32

10 561.06 3754.50 3193.44 0.386 1231.21 1447.52 216.31 0.322 1028.2007 1208.85 180.65

11 561.06 3754.50 3193.44 0.350 1119.28 1315.93 196.65 0.287 918.03632 1079.33 161.29

12 561.06 3754.50 3193.44 0.319 1017.53 1196.30 178.77 0.257 819.67528 963.69 144.01

13 561.06 3754.50 3193.44 0.290 925.02 1087.54 162.52 0.229 731.85293 860.43 128.58

14 561.06 3754.50 3193.44 0.263 840.93 988.68 147.74 0.205 653.44012 768.24 114.80

15 561.06 3754.50 3193.44 0.239 764.48 898.80 134.31 0.183 583.42868 685.93 102.50

16 561.06 3754.50 3193.44 0.218 694.98 817.09 122.10 0.163 520.91846 612.44 91.52

17 561.06 3754.50 3193.44 0.198 631.80 742.81 111.00 0.146 465.10577 546.82 81.72

18 561.06 3754.50 3193.44 0.180 574.37 675.28 100.91 0.130 415.27301 488.23 72.96

19 561.06 3754.50 3193.44 0.164 522.15 613.89 91.74 0.116 370.77947 435.92 65.14

20 561.06 3754.50 3193.44 0.149 474.68 558.08 83.40 0.104 331.0531 389.22 58.16

21 561.06 3754.50 3193.44 0.135 431.53 507.35 75.82 0.093 295.58312 347.51 51.93

22 561.06 3754.50 3193.44 0.123 392.30 461.22 68.92 0.083 263.9135 310.28 46.37

6386.23 23465.29 17079.06 3480.6479 19585.61 16104.97

EIRR= 15.41%

Benefit/Cost ratio at 10%= 1.37

Benefit/Cost ratio at 12%= 1.22

Estimated by: Checked by: Forwarded by: Approved by:

 SENSITIVITY ANALYSIS - 2
(By decreasing 20% Benefit)

Project Name : Bahirisen Irrigation Project

Construction cost = Rs. 12731.6

Benefit per year = Rs. 3128.75 (Rs in Thousand)

NPV NPV
Construction Maintenance Discount NPV AT NPV cost Discount NPV AT NPV cost
Year Benifit Cash flow benefit AT benefit AT
cost cost at 10% 10% AT 10% at 12% 12% AT 12%
10% 12%

1 5092.64 0.00 0.00 -5092.64 0.909 -4629.67 0.00 4629.67 0.893 -4547.00 0.00 4547.00

2 7638.96 0.00 0.00 -7638.96 0.826 -6313.19 0.00 6313.19 0.797 -6089.73 0.00 6089.73

3 561.06 1251.50 690.44 0.751 518.74 940.27 421.53 0.712 491.44019 890.79 399.35

4 561.06 1877.25 1316.19 0.683 898.97 1282.19 383.21 0.636 836.46087 1193.02 356.56

5 561.06 2815.87 2254.81 0.621 1400.06 1748.43 348.37 0.567 1279.4405 1597.80 318.36

6 561.06 3128.75 2567.69 0.564 1449.39 1766.10 316.70 0.507 1300.8696 1585.12 284.25

7 561.06 3128.75 2567.69 0.513 1317.63 1605.54 287.91 0.452 1161.4907 1415.29 253.80

8 561.06 3128.75 2567.69 0.467 1197.84 1459.58 261.74 0.404 1037.0453 1263.65 226.60

9 561.06 3128.75 2567.69 0.424 1088.95 1326.89 237.94 0.361 925.93329 1128.26 202.32

10 561.06 3128.75 2567.69 0.386 989.95 1206.27 216.31 0.322 826.72615 1007.37 180.65

11 561.06 3128.75 2567.69 0.350 899.96 1096.61 196.65 0.287 738.14835 899.44 161.29

12 561.06 3128.75 2567.69 0.319 818.14 996.92 178.77 0.257 659.06103 803.07 144.01

13 561.06 3128.75 2567.69 0.290 743.77 906.29 162.52 0.229 588.44735 717.03 128.58

14 561.06 3128.75 2567.69 0.263 676.15 823.90 147.74 0.205 525.39942 640.20 114.80

15 561.06 3128.75 2567.69 0.239 614.68 749.00 134.31 0.183 469.10662 571.61 102.50

16 561.06 3128.75 2567.69 0.218 558.80 680.91 122.10 0.163 418.8452 510.37 91.52

17 561.06 3128.75 2567.69 0.198 508.00 619.01 111.00 0.146 373.96893 455.68 81.72

18 561.06 3128.75 2567.69 0.180 461.82 562.73 100.91 0.130 333.90083 406.86 72.96

19 561.06 3128.75 2567.69 0.164 419.84 511.58 91.74 0.116 298.12574 363.27 65.14

20 561.06 3128.75 2567.69 0.149 381.67 465.07 83.40 0.104 266.18369 324.35 58.16

21 561.06 3128.75 2567.69 0.135 346.97 422.79 75.82 0.093 237.66401 289.60 51.93

22 561.06 3128.75 2567.69 0.123 315.43 384.35 68.92 0.083 212.20001 258.57 46.37

4663.92 19554.40 14890.49 2343.7253 16321.35 13977.62

EIRR= 14.77%

Benefit/Cost ratio at 10%= 1.31

Benefit/Cost ratio at 12%= 1.17

Estimated by: Checked by: Forwarded by: Approved by:

 SENSITIVITY ANALYSIS - 3
(By increasing 10% Construction Cost and decreasing 10% Benefit)

Project Name : Bahirisen Irrigation Project

Construction cost = Rs. 14004.8

Benefit per year = Rs. 3413.18 (Rs in Thousand)

NPV NPV
Construction Maintenance Discount NPV AT NPV cost Discount NPV AT NPV cost
Year Benifit Cash flow benefit AT benefit AT
cost cost at 10% 10% AT 10% at 12% 12% AT 12%
10% 12%

1 5601.90 0.00 0.00 -5601.90 0.909 -5092.64 0.00 5092.64 0.893 -5001.70 0.00 5001.70

2 8402.86 0.00 0.00 -8402.86 0.826 -6944.51 0.00 6944.51 0.797 -6698.71 0.00 6698.71

3 561.06 1365.27 804.21 0.751 604.22 1025.75 421.53 0.712 572.421 971.77 399.35

4 561.06 2047.91 1486.85 0.683 1015.54 1398.75 383.21 0.636 944.91768 1301.48 356.56

5 561.06 3071.86 2510.80 0.621 1559.01 1907.38 348.37 0.567 1424.6951 1743.06 318.36

6 561.06 3413.18 2852.12 0.564 1609.95 1926.65 316.70 0.507 1444.9715 1729.22 284.25

7 561.06 3413.18 2852.12 0.513 1463.59 1751.50 287.91 0.452 1290.1531 1543.95 253.80

8 561.06 3413.18 2852.12 0.467 1330.53 1592.27 261.74 0.404 1151.9224 1378.53 226.60

9 561.06 3413.18 2852.12 0.424 1209.58 1447.52 237.94 0.361 1028.5021 1230.83 202.32

10 561.06 3413.18 2852.12 0.386 1099.61 1315.93 216.31 0.322 918.30548 1098.95 180.65

11 561.06 3413.18 2852.12 0.350 999.65 1196.30 196.65 0.287 819.91561 981.21 161.29

12 561.06 3413.18 2852.12 0.319 908.77 1087.54 178.77 0.257 732.06751 876.08 144.01

13 561.06 3413.18 2852.12 0.290 826.16 988.68 162.52 0.229 653.6317 782.21 128.58

14 561.06 3413.18 2852.12 0.263 751.05 898.80 147.74 0.205 583.59973 698.40 114.80

15 561.06 3413.18 2852.12 0.239 682.77 817.09 134.31 0.183 521.07119 623.57 102.50

16 561.06 3413.18 2852.12 0.218 620.70 742.81 122.10 0.163 465.24213 556.76 91.52

17 561.06 3413.18 2852.12 0.198 564.28 675.28 111.00 0.146 415.39476 497.11 81.72

18 561.06 3413.18 2852.12 0.180 512.98 613.89 100.91 0.130 370.88818 443.85 72.96

19 561.06 3413.18 2852.12 0.164 466.34 558.08 91.74 0.116 331.15016 396.29 65.14

20 561.06 3413.18 2852.12 0.149 423.95 507.35 83.40 0.104 295.66979 353.83 58.16

21 561.06 3413.18 2852.12 0.135 385.41 461.22 75.82 0.093 263.99088 315.92 51.93

22 561.06 3413.18 2852.12 0.123 350.37 419.30 68.92 0.083 235.70614 282.07 46.37

5347.30 21332.08 15984.77 2763.8107 17805.10 15041.29

EIRR= 14.97%

Benefit/Cost ratio at 10%= 1.33

Benefit/Cost ratio at 12%= 1.18

Estimated by: Checked by: Forwarded by: Approved by:

WIDSD No. 1, Gorkha Chepe Paluntar ISP, Gorkha

Work Brakedown (to be done by WUA, HMG, World Bank)

Project Name : Bahirisen Irrigation Project

F. Y. : 060/061

Total Project Cost : 12731600.4

Works to be done by WUA contribution:

@ 15% of total construction cost. NRs. 1909740.06

Works to be done by HMG/N and World bank fund:

S.N. Description Amount Remarks

1 HMG Nepal 1298623.24259 @ 12%

2 World Bank Fund 9523237.11229 @ 88%

Adarsha Engineering Consultancy I-11

 Puranbesi IP, Puranchaur-4,6, Kaski

Implementation Schedule
Project Name : Bahirisen Irrigation Project Allocated Budget:(NRS in thousands)
(a) Previous F/Y:
Category: Rehab (b) Current F/Y:
(c) Future F/Y:
065/066 066/067 067/068 068/069
S.No. Activity 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 1 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
1 Investigation, Assessment of Farmers' Request and
Preparation of Scheme of Development
2 General meeting with farmers concerned/discussions and
agreement on Scheme of Development subject to
feasibility study/farmers participation and obligations
if it is approved.
3 Preparation:
(a) Technical feasibility study
(b) Socio-institutional study
(c) Preparation ofFeasibility Study and Reports
4 Appraisal/Approval
(a) Review & Finalization of FSR by ISCS/RIO endorsement
(b) Appraisal by DAC or RAAC
(c) Approval by RAAC or DG
5 General meeting with farmers /beneficiaries; Selection of
Ivs/CFs; formation of different committee and ad-hoc executive
Committee; discussion on Approved Scheme of Development
with farmers' agreement.
6 Signing of Memorandum of Agreement between DIO & WUA
7 Raising WUA cash contribution &Establishment of Account
8 Pre-construction Conference & Supervision Arrangement
9 Construction Work-30% Labour Contribution
10 IDT's verification and certification for further process by DIO
11 Construction Work-70% Labour Contribution
12 Tendering/Contract Award/or WUA Agreement as required
13 Construction and Construction Supervision
(a) Head works
(b) Canal Structures
(c) Canals
(i) Lined
(ii) Unlined
(d) Others (River-Training, Bank Protection etc)
14 O & M and Other Training for WUA
15 Test run/Rectification of defective facilities
16 Completion Certificate Hand Over of Constructed Facilities
17 Continuing O & M/ WUA

B-9
 EIRR Calculation and Sensitivity Analysis
Dauli Irrigation Project

Description Condition-1 Condition-2 Condition-3

Total Estimated Cost (NRs) 12731600.42 15277920.50 12731600.42
Incremental Benefit/yr (NRs) 3754495.70 3754495.7 3003596.56
Project life Years 20 20 20

Cash Flow NRs'000

Cash flow No of yrs Normal 1.2*Cost
Capital cost 1 12731.6 15277.9
Capital cost 2 0.0 0.0
Revenue 20 3754.5 3754.5
O & M cost 20 636.6 105.0
Residual value 20 0 0

EIRR at Normal project Cost

Discount Rates NPV of Revenue Net Present Value of Cost
Capital cost O & M Cost
0.10 19065.91 11574.18 3232.65
0.11 17816.11 11457.40 3020.75
0.20 10930.99 10609.67 1853.36
0.25 8579.48 10185.28 1454.66
0.2736 8392.39 9996.45 1306.59
0.30 7366.35 9793.54 1164.50

EIRR at 20% increased project Cost

Discount Rates NPV of Revenue Net Present Value of Cost
Capital cost O & M Cost
0.10 19065.91 13889.02 533.21
0.15 14247.97 13285.15 398.47
0.1789 12191.19 12959.99 340.94
0.20 10930.99 12731.60 305.70
0.25 8579.48 12222.34 239.94
0.30 6868.15 11752.25 192.08

EIRR at 20% Decreased benefits

Discount Rates NPV of Revenue Net Present Value of Cost
Capital cost O & M Cost
0.10 15252.73 11574.18 533.21
0.1480 11526.83 11090.39 402.96
0.15 11398.38 11070.96 398.47
0.20 8570.14 10574.42 299.60
0.25 6863.58 10185.28 239.94
0.30 5494.52 9793.54 192.08

EIRR at 20% Decreased benefits & 20% increased cost at the same time
Discount Rates NPV of Revenue Net Present Value of Cost
Capital cost O & M Cost
0.10 15252.73 13889.02 533.21
0.1107 14296.52 13755.20 499.78
0.16 10654.51 13144.56 372.46
0.20 8744.79 12731.60 305.70
0.25 6863.58 12222.34 239.94
0.30 5494.52 11752.25 192.08

EIRR
EIRR at Normal Cost 27.36
EIRR at 20% increased cost 17.89
EIRR at 20% decreased benefits 14.80
EIRR at 20% Decreased benefits & 20% increased cost at the same time 11.07
Benefit Cost Ratio
B/C Ratio at 10% discount rate 1.29
B/C Ratio at 15% discount rate 1.23
B/C Ratio at 30% discount rate 0.55
 Condition-4
15277920.50
3003596.56
20

0.8*Benefit
6365.8
0.0
3003.6
105.0
0

NPV0

4259.08
3337.96
-1532.05
-3060.46
-2910.66
-3591.69

NPV0

4643.68
564.36
-1109.74
-2106.32
-3882.79
-5076.18

NPV0

3145.34
33.48
-71.04
-2303.87
-3561.63
-4491.10

me time
NPV0

830.50
41.53
-2862.51
-4292.51
-5598.69
-6449.81

%
%
%
%

1.29
1.23
0.55