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COST BENEFIT ANALYSIS OF
URBAN TREE MANAGEMENT
       IN GOIÂNIA

           Ricardo Magno
       Senior Project Manager
ricardo.magno@prbambiental.com.br
Population
Precipitation
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
Project Analysis

            Risk




               Project

Financial                     Economical
                               Economical
Methodology

                 Determine
                  Program
                 Objectives




    Recognize    Enumerate
    Constrains   Alternatives
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%)
Costs

• Seedlings plantation (30%)
• Tree removal (35%)
• Stump grinding and sidewalk reconstruction
  (35%)
• Seedling irrigation (0%)
Discount rate




                                USA
                              0.75%
1996
                       2012
Effect of the discount rate




                              30
       4.46

       0.78
        1
Cost Benefit

R$ 52 000 000




                         R$ 30 000 000
Benefit–cost ratio




     1.7             >1
                          1
                     <1
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
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
COST BENEFIT ANALYSIS OF  URBAN TREE MANAGEMENT IN GOIÂNIA

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COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT IN GOIÂNIA

  • 1.
  • 2. COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT IN GOIÂNIA Ricardo Magno Senior Project Manager ricardo.magno@prbambiental.com.br
  • 3.
  • 6.
  • 7.
  • 8.
  • 9.
  • 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

Editor's Notes

  1. Some “conflicts”Maybe a tree will fall
  2. Maybe 2…Or maybe…
  3. 500