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Environmental Management Framework (emf) coastal embankment improvement project phase-i project (ceip-i) April 29, 2013 Dhaka Bangladesh Water Development Board Ministry of Water Resources Government of the People’s Republic of Bangladesh


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7.8Methods for estimating costs and benefits of the impacts and mitigation/enhancement measures





  1. It is very crucial to estimate the benefits of the project interventions, damages/loss due to the impacts as well as cost and benefits of mitigation / enhancement measures for proper evaluation of the proposed project. Quantitative and qualitative approach can be followed depending on the indicators to be measured or estimated. Some of the methods are described below. These methods need to be applied while conducting detail EIA study.



7.8.1Methods for estimating costs of environmental damages


  1. Valuation of environmental damages due to proposed project can be estimated using direct and indirect valuation methods with specific indicators of damages. For instance, reduction of fish capture can be estimated from the differences of fish catch between before project and after project situation, whereas loss of migratory fish can be estimated through counting number of fish species in before project and after project situation. Similar example of damage estimation methods are given in Table 7.8. Some of the damages can be expressed in monetary terms, some are not. In such case, multi criteria based combined index can be calculated to estimate value of overall negative impacts of the proposed project.


Table 7 16: Example of methods for Estimating Costs of Environmental Damages

Possible Negative Environmental Impacts

Method for estimating damages

Estimating market value of the amount of fish catch decreased due to new regulators in the channel (Taka/ year)

  • Some migratory fish species may be reduced due to closure dam or constructing new regulators

Counting number of migratory fish species decreased

  • Aquatic habitat area will be reduced due to closure dam.

Estimating area of aquatic habitat reduced (ha)


7.8.2Methods for estimating benefits of the direct positive impacts of the project


  1. Similar methods will be used for estimating benefits of the project as the methods for estimating damages. Examples of methods for estimating benefits of the positive environmental impacts are shown in Table 7.9.


Table 7 17: Example of methods for estimating benefits of positive environmental impacts

Possible Positive Environmental Impacts

Method for estimating benefits

  • Cropped area will increase due to increase of flood free and salinity free area, irrigation facilities

Estimating value of additional crop produced in the increased cropped area due to project (Taka/year in each polder)

Estimating value of fish catch increased due to channel re-excavation in each polder (Taka/ year)

  • Fish migration will improve as well as species diversity will improve due to channel re-excavation

Counting number of migratory fish species increased

  • Shrimp farms will increase inside polders

Estimating value of shrimp production in increased shrimp area in each polder (Taka/ year)

  • Employment opportunity will increase

% of employment

% of employment

  • Household income and food consumption will be improved due to flood free environment

Estimating the amount of household income increased after project interventions

  • Population migration will decrease due to increase of flooding free area

% of day labor migrating to other areas

  • Quality of life indicators such as housing, drinking water, health and sanitation will be improved

% of households having access to safe drinking water supply and sanitation

% of woman employment



7.9Cost of implementing EMP and source of funds





  1. Tentative cost of implementing proposed mitigation plan, enhancement plan, compensation and contingency plan, and monitoring plan need to be estimated. The financial costs and benefits of mitigation/enhancement measures can be estimated based on the material and human resources requirements for the particular mitigation/ enhancement measures. Some example of methods for estimating cost and benefits of mitigation/ enhancement measures are shown in Table 7.10.


Table 7 18: Example of methods for estimating cost and benefits of mitigation/ enhancement measures

Mitigation/ Enhancement Measures

Objective

Items to be included for estimating cost

Items to be included for estimating benefits

Enhancement measures

Alternative communication system (e.g. submersible road) can be developed

To improve communication system

  • Materials and labor for constructing roads cost

  • Price of land cost

Support of DAE should be extended to promote sustainable agriculture practices (with low agro-chemical inputs, efficient irrigation system)

To reduce overuse of agro-chemicals and promote efficient irrigation system in the protected polder areas

  • Organizing training and public awareness program cost

  • Demonstration project for sustainable agriculture cost

Afforestation

To increase fuel wood and timber production

  • Cost of seedlings, and labor

  • Maintenance cost

  • Awareness program

Mitigation measures

Adopting erosion control and soil stabilization measures is necessary to maintain embankments and protect tidal flooding

To reduce river bank erosion

  • Erosion protection works cost

  • Protected land area

  • Protected population

  • Protected agriculture crop production

Construction of fish friendly structures like fish-pass instead of traditional structures. In other cases openings of outlet structures should be made as wide as possible for relatively free movement of fishes during migration.

To reduce loss of migratory fish species and increase fish production

  • Fish production

  • Number of migratory fish species




  1. Cost for implementing monitoring plan should include the following items:

  • Cost for Laboratory Data Testing

  • Remuneration of professionals of monitoring team

  • Cost for field visits and data collection (including surveyor, travel, etc.)

  • Cost for laboratory test of required environmental parameters

  • Cost for report production, etc.

  • Coat for WMO Training and Capacity Building

  • Cost of activity specific mitigation measures




  1. All the costs for implementing EMP should be included in the project budget. The funds for implementing EMP can be generated from the following sources, depending on the measures mentioned in EMP. Specific suggestions should be made in the EIA report.

  • Budget of the CEIP project

  • Funds for implementing EMP (Component B of CEIP project)

  • Projects of other departments (e.g. enhancement measures for agriculture can come through DAE; fisheries management projects of DoF, Forestry project )

  • O & M budget for CEIP project from government revenue budget

  • Livelihood development program through NGOs and donor agencies

  • Special fund created by local beneficiaries/ stakeholders
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