Pre-feasibility study for a CDM-AR project in the Cochabamba ...

4.3. Land Prices / Opportunity Costs of Land
Land in the area is sold frequently so for land price the market price can be used.
Subdivision of ownership of existing parcels is not allowed. Land price per hectare was
calculated by dividing the total average price of the parcels by the number of hectares.
Average prices were obtained asking those land owners having there parcels for sale.
4.4. Financials
All costs and revenues are summarized ENCOFOR’s financial DSS, which can be
found in the annex 1 of this report. A summary of the general financial information, for
the whole project, can be found in table 5.5 and 5.6. Within the costs also the inkind
contribution of the local communities is provided, this includes the cost of labour
provided by the farmers and a land price of 200 USD per ha, which was found the
average land price in the area.
Table 5.5.: financial summary of proposed project
General Financial Information
Project Size (in ha) 6.500
Project Duration (in years) 60
Carbon Price (in USD) (iCER) 5
Information on Cost and Revenues
Total cost of project 13.503.403
Preparation costs 70.000
Establishment costs 4.864.325
Operating costs 7.764.768
Carbon costs and Forst Mngt Certification 874.310
Total Revenue (excl. carbon credits, extraordinary incomes) 99.346.951
Revenue of carbon credits 3.465.486
Source: own
As can be noted in table 5.3 total cost of the project is 13.503.403 USD of which almost
3.073.764 US$ is covered by the community for labour and land. Project proponent
CETEFOR itself is willing to invest 510.000 US$ and an additional 4.100.000 will be
financed by carbon and wood investors. 5.819.639 US$ are costs made later on in the
project and can be covered by project revenues. It is expected that revenues ofCER’s
are minimal 3.465.486 US$ considering a price for lCER’s of 5 USD/tnCO2e.
Prefeasibility report Chapare
25