- § =

a) primary benefits of irrigation and drainage projects should
-be baged 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;

b) discount rate ~ the discount rate for present value

calculations shail be 10% with sensitivity analysis
conducted at 8% and 12%, of as determined by Management.

Committees

c} @ project Life for present value calculations of 25 years;
é) total costs should include capital works, material and
labour costs as well as maintenance and operational costs

of the works:

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

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