Presenting by Taniela Sila

1. MBA 439 : INDIVIDUAL PROJECT
CBA Analysis Topic:Savusavu Port Development, Fiji, Asian Development
Bank report Jan 2008, Environmental Impact Assessment and cost benefit
analysis
Presenter
Taniela
Sila(S97004499)

2. • Project Site
• Objectives of Study
• Case Summary
• ROI Project Goals
• Project contribution to ROI
• Project Stages
• Case Study Analysis
• Conclusion
• Recommendation
• Reference
2
PRESENTATION OUTLINE

3. 3
Project Area
6km
PROJECT SITE

4. OBJECTIVE OF STUDY
To present EIA
results of the
proposed
Savusavu Port
Development
Project
Support
development
objectives of the
government
4

5. 1. Development Objective
• - Govt Regional Development
- Past Reports recommend site as
ideal
-ROI(ADB Report 2005)
- Investors Preference
2.Need Assessment
• -Agri growth in Vanua Levu cannot be
sustained
-High shipping costs
-Need for containerized shipping
5
Stakeholders
• Asian Development Bank - Funding of Project
• Ministry of Agriculture, Sugar and Land Resettlement- Project Owner
• Savusavu Community
CASE SUMMARY

6. 6
2. Improved Market Access1. Improved Livelihood
Rural Outer Island(ROI) PROJECT GOALS

7. 7
3. To acquire and utilize human, natural, and
financial assets
ROI PROJECT GOALS

8. • Facilitate agriculture growth
• Increase export :timber industry
• Improve opportunities: fishing
industry
• Increase employment
• Reduce internal migration
• Beneficial: tourism development
• Reducing the cost of consumer
goods.
• Increased international trade (leading to
financial incentive )
8
PORT DEVELOPMENT CONTRIBUTION
TO ROI GOALS

9. 9
2 Stages
- 2
overseas
shipping
berth
- 2 local
berth
- cargo
storage
- 2
transit
shed
- oil
discharg
e
facilities
-
Administr
ation
building
CASE STUDY ANALYSIS

10. • Water
• Space (2 hectares)
• Reclamation
• Sewage treatment facilities
• Refuse Disposal
• Additional road infrastructure
• Labour
• Additional Services
10
DEMAND OF PROJECT

11. 11

12. 12
Environmental impacts and mitigation
Measures
• Screening - potential impacts were categorized; defined as
being adverse, positive, or no impact, environmental and
social significance of the impacted area and the probability of
the impact actually occurring.
• Mitigation Measures:
• Avoiding the impact (e.g. realign a road to avoid a protected
area);
• Minimizing the impact (e.g. put tarps on trucks carrying
excavated material);
• Rectifying the impact (e.g. rehabilitate areas where
construction destroyed
• forests); or
• Compensating for the impact (e.g. providing financial
compensation for those who will lose land or structures).
Two
phase
approach:

13. Risk Assessment
Mitigation through design
Construction mitigation
measures
Operation mitigation measures
Environmental Monitoring and
Reporting
Legal Framework (Environment
and Occupation)
13
MITIGATION MEASURES

14. 14
Economic Assessment
• The value of increased export earnings over 15 years are projected in Table 28.
The benefits are assumed to be constant after year 10; Agriculture
• First year projected=160 containers of additional exports, of which 50 will be taro.
• The estimated exports is $2.6 million, of which around $1.1 million is valued
added (direct addition to GDP).
• Over a 10 year period, the number of containers increases to over 1,000 the
estimated to $17.4 million and $7.4 in value added

15. 15
Public Consultation

16. 16
•Financial revenue
to local people
•Financial revenue
to local companies
(increased trade)
A.Construction
phase;
Major environmental and social benefits:
FEASIBILITY :BENEFITS

17. 17
• Reduced international
export and import
costs
• Improved tourism
opportunities
• Improved economic
opportunities
• Improved social,
economic, and
environmental quality
in Savusavu town
B.Operations-
phase
benefits:
FEASIBILITY :BENEFITS

18. 18
• Reduced need to build new road
alignments and inter alia.
• reduced stress on marine parks
and forested areas.
• reduced need for land acquisition.
• possibly reduced safety risks on
selected rural roads.
• Reduced travel time to Labasa
• Increase in export trade – eg.
copra industry etc..
• Reduced Shipping Costs
Con’t..B.Operations-
phase benefits:
FEASIBILITY :BENEFITS

19. 19
Destruction of
Fishing
Grounds
Loss of
Marine
Resources
Loss of
access to
the sea
Resettleme
nt issues
Waste
Managem
ent issues
• -
Sewerage
discharge
into the
sea
FEASIBILITY :NEGATIVE IMPACTS

20. No reliable
geotechnical
information
for the site
Ownership of
site not clear
Cost estimate
of materials
could change
with changes
in world
market prices
Chosen site(
out of 3
options)
based on cost
20
PROJECT RISKS

21. 21
COST BENEFIT ANALYSIS (10 YR Projection)
• Benefits =$10,385, 580
• Cost =$540,000
3.EIRR(economic internal rate if return) =18.1%
4.ENPV(Economic Net Present Value) (5%interest) =$13.7 million
5.B/C (5%interest) = 1.5
Refer table 32
VIABILITY OF PROJECT

22. 22

23. 23
SENSITIVITY ANALYSIS
1.↑ Capital Cost(15%) ; ↓EIRR (14.4%), SI(sensitivity Index)=1%
2. Taro Beetle Threat; ↓ EIRR(7%) ;Tourism + Value Added Exports
3.15 year projection without Taro ; EIRR 16.7%
4.B/C = 1.4
Refer table 33
CONT…VIABILITY OF PROJECT

24. 24

25. Project presents no major
insurmountable impacts if
mitigation measures are
implemented
Project is viable
Project can help curb
rural urban drift
25
CONCLUSION

26. Public health
awareness on impacts
of contaminated
shorelines
Need for further
detailed researches
Strict monitoring for
implementation of to
mitigation measures
26
RECOMMENDATION

27. • Bank, A. D. (2008). Environmental Impact Assessment (EIA) Savusavu Port Development
Government of Fiji.
• Layton, A. P., Robinson, T., & Tucker, I. B. (2016). Economics For Today. Sydney: Cengage Learning
Australia Pty Limited.
27
REFERENCE

28. 28