Thailand Core Country Team: Members Affiliations Ms. Piamchan Doungmanee National Institute of Development Administration (NIDA) Ms. Jirapa Trochim Office of Agricultural Economics (OAE) Mr. Lertchai Srianant Royal Irrigation Department (RID) Ms. Anupit Supnithadnaporn (Focal Point) Office of National Economic & Social Development Board (NESDB) Assoc. Prof. Niramol Suthamakit Thammasat University (Mentor) Cost-Benefit Analysis: Water Project • Project Name: The Phitsanulok Left Irrigation System Project, Phase II • Funding Source: Royal Thai Government • Project Leader: Royal Irrigation Dept., Ministry of Agriculture & Agriculture Cooperatives Project Status: Completed feasibility study in 2010 Total project investment: 323 million $ US • • • Project Objectives: o Outputs: (1) Irrigation canals; (2) Drainage systems; (3) Dikes along Nan River o Expected Outcomes: (1) Increase irrigation area and cropping frequency; (2) Provide water supply, (3) Protect and mitigate flood 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 2 Cost-Benefit Analysis: Water Project Wetter Future Scenario Costs Existing Project w/o CC Existing Project w/ CC – No Adaptation Project w/ CC & Adaptation Construction costs $ X1 $ X1 >> $ X1 Large main irrigation cannels ?? Small peripheral irrigation cannels Drainage system Dikes along Nan River Maintenance costs $ X2 >> X2 >> $ X2 Compensation for land owner (expropriation) $ X3 $ X3 >> $ X3 (more land needed) Environmental impact mitigation costs $ X4 $ X4 >> $ X4 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 3 Cost-Benefit Analysis: Water Project Wetter Future Scenario Benefits Existing Project w/o CC Existing Project w/ CC – No Adaptation Project w/ CC & Adaptation Crop Production Improvement $ Y1 << $ Y1 $ Y1 Fruit Production Improvement $ Y2 << $ Y2 $ Y2 Increased Ground Water $ Y3 << $ Y3 $ Y3 Increased Fishery $ Y4 ?? $ Y4 ?? Y4 Income from Tourism $ Y5 ?? $ 5 ?? Y5 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 4 Cost-Benefit Analysis: Water Project What next? • Consult with climate scientists – Identify most likely climate scenario in the next 30 – 60 yrs at the project sites • Consult with water resource engineers – Identify proper alternatives for CC adaptation – Get estimates of the costs of those alternatives 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 5 Cost-Benefit Analysis in Agriculture The economic cost-benefit analysis of alternative rice growing technique Cost-Benefit Analysis: Agriculture Project • Title: The economic cost-benefit analysis of alternative rice growing technique • Objective: – To evaluate the cost and benefit of alternative of rice growing technique at the farm level • Geographic scope of the project: – Irrigated area in central region • Actions on the ground/Alternatives: – Broadcasting – Manual parachuting – Rice transplanters 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 7 Parachuting vs Rice Transplanter 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 8 Cost-Benefit Costs Material and other expenditure C1 Seed Benefits B1. Yield (output per rai) B2. Income generated from the investment = (Price x Output) – (Expenditure) B3. Environmental benefits from saving - fertilizer - herbicide/insecticide - water - greenhouse gases emission B4. Health benefits from saving - fertilizer C2 Fertilizer C3 Herbicide/insecticide C4 Fuel and electricity C5 Water Cost of labor in C6 Land preparation C7 Planting (transplanting using labor/machine and parachute) C8 Maintenance - herbicide/insecticide C9 Harvest Cost of equipment and investment C10 Equipment C11 Investment (e.g. land preparation) Land rent UNDP-USAID Capacity Building on ECCA: 4/9/2015 Thailand Case 9 Next Step • To explore possible government supporting measures – Low interest loan for buying transplanting machine – Buying transplanting machine for community 4/9/2015 UNDP-USAID Capacity Building on ECCA: Thailand Case 10