85/10/08

- &

primary benefits of irrigation and drainage projects should
be based on the expected increased net present value of
agricultural production once marketing aspects have been
investigated. Where appropriate, price and yield
sensitivity analysis should be conducted;

discount rate - the discount rate for present value
calculations shall be 10% with sensitivity analysis
conducted at 8% and 12%, or as determined by Management
Committee;

a project life for present value calculations of 25 years;

total costs should include capital works, material and
labour costs as well as maintenance and operational costs

of the works;

secondary benefits and costs shouid be examined where they
can be clearly defined and considered in the analysis.