PED guidebook main sxn rev6. FINAL.pdf - LGRC DILG 10

Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand Development4.3.4 The case of project outputs with benefits that cannot be monetizedExamples of these are projects that improve health and sanitation, or peace andorder, preserve culture, or promote harmony. Some studies still venture toestimate consumers’ “willingness-to-pay” for such goods. However, theapplication may be so limited to a certain group of people as to be useful ingeneral. The projects can still be evaluated in comparison to alternative types ofprovision.a. Identify a measure of effectiveness.b. Determine the effectiveness level for each type of provision.c. Determine the economic cost of each type of provision.d. Compute for the cost-effectiveness ratio, or the ratio of the economic costto the measure of effectiveness.Example (v): Objective of the project: Promote good health among elementarystudents in depressed barangaysMeasure of effectiveness: proportion of elementary students that have normalweight for heightType of provision Coverage Entire CostDaily hot meals All elementary students Php 5,400 dailyRation of 1 kg rice daily All families of elementarystudentsPhp 4,320 dailySuppose that at the end of 1 semester, we found out that the proportion ofstudents with normal weight for height increased from 60% to 80% in the case ofthe hot meals project, while it increased from 60% to 75% in the case of the riceration project, we arrive at the following analysis table:Type of provision Cost Effectiveness CosteffectivenessratioDaily hot meals Php 5,400 daily 20% increase 270Ration of 1 kg ricedailyPhp 4,320 daily 15% increase 288Conclusion: The hot meals project is more cost-effective in increasing theproportion of children with normal weight for height.RGEdillon January 200651