WinDASI Exercise NGAMO 3: Economic Impacts of an Irrigation and Mechanization Project

Abstract

This module presents NGAMO 3, a practical step-by-step exercise in Cost Benefit Analysis (CBA) of investment projects, to be run with the WinDASI software. (The word NGAMO comes from the name of the zone of the original project that was located in Myanmar). The goal is to analyze the overall economic impact of the irrigation project, the so-called “economic analysis” of the project. To accomplish this task, the analyst is requested to calculate economic flows of costs and benefits by using econo mic prices, and calculate the relative project indicators (NPV, IRR, and Benefit/Cost Ratio). Moreover, some alternative project scenarios have to be explored in order to improve the viability of the project.