Professional Documents
Culture Documents
OF
GULPUR HYDRO POWER PROJECT
1. Environmental Impact Assessment (EIA)
Detailed environmental study will be carried out in order to obtain the environmental
impact assessment (EIA) and to identify the environmental implications of the
proposed Hydro Power Project. EIA is planned to be carried out in accordance with
the following guidelines:
Suggestions for remedial measures to eliminate or minimize any harmful affects and
additional costs of some measures will also be incorporated in the section.
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3. Economic and Financial Viability
Economic and Financial Analysis
Economic analysis is a systematic and scientific approach to determine the
programme of action by comparing the ex-ante performance with ex-post
achievements which essentially entail major socio-economic developments in their
area of influence. Economic analysis seeks to ascertain the reward for investment and
provide guidelines to establish the feasibility of the project. It is necessary that gains
generated should exceed the cost of the goods and services used in its construction
and operation. At least these gains must match or yield higher returns from an
alternative investment. The primary objective of undertaking economic analysis is
thus to determine whether the contribution of a particular project in the shape of
added value benefits is adequate enough to justify use of scarce resources needed in
the form of project investment costs. The economic justification of investment in a
capital intensive project depends on three factors. Firstly, there is a need for the
project, secondly, where technological options are available, the project represents the
most economic choice of option; and thirdly, that investment in the project will
produce an acceptable return to the national economy. This process involves the
assessment of project benefits and identification of project costs over the economic
life of the project. The economic evaluation of proposed Hydel Project will be carried
out on the basis of power and energy generated by the project.
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