as presented on: Environmental Concerns in Rights-of-Way Management - The Tenth Symposium Phoenix, AZ, USA, September 30 through October 3, 2012

2. COST BENEFIT ANALYSIS OF
URBAN TREE MANAGEMENT
IN GOIÂNIA
Ricardo Magno
Senior Project Manager
ricardo.magno@prbambiental.com.br

4. Population

5. Precipitation

10. Street Tree Master Plan
• Duration of 10-20 years
• Sample inventory:
• 38 874 seedlings
• 5% tree removal
• operational procedures
• 13 pg of testimonials (?!)
http://www.goiania.go.gov.br/shtml/amma/pdau.shtml

11. Project Analysis
Risk
Project
Financial Economical
Economical

12. Methodology
Determine
Program
Objectives
Recognize Enumerate
Constrains Alternatives

13. Benefits
• Research & Development (R&D) and overhead
power lines upgrades (20%)
• Tree trimming residue compost (1%)
• Air conditioning energy savings (8%)
• Real estate added value (62%)
• Eradicate tree fall (8%)

14. Costs
• Seedlings plantation (30%)
• Tree removal (35%)
• Stump grinding and sidewalk reconstruction
(35%)
• Seedling irrigation (0%)

15. Discount rate
USA
0.75%
1996
2012

16. Effect of the discount rate
30
4.46
0.78
1

17. Cost Benefit
R$ 52 000 000
R$ 30 000 000

18. Benefit–cost ratio
1.7 >1
1
<1

19. More information
Parameter Value Meaning
Cost Benefit rate 1.7 Benefits are generated
Net Present Value R$ 22 000 000 Add value
Total Cost R$ 30 000 000 Investment
Payback 0 Time to pay the project
Execution 10 years

20. Thank You!
Ricardo Magno Santos Antunes
Project Manager
+55 (31) 3201-1234
+55 (31) 9866-7825
ricardo.magno@prbambiental.com.br
www.prbambiental.com.br