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

Strengthening Provincial/LocalPlanning and Expenditure ManagementProject Evaluationand DevelopmentExample (w): Objective of the project: To promote population managementMeasure of effectiveness: reduction in total fertility rateType of provision Coverage Entire CostIEC campaign using mass Entire provincePhp 2 millionmediaHouse-to-house campaign Entire province Php 480,000 (RATA ofBHW) + Php 2 million(condoms and pills)Type of provision Cost Effectiveness CosteffectivenessratioIEC/mass media Php 2 million Reduction in TFR from 4 million4 to 3.5House-to-housecampaignPhp 2,480,000 Reduction in TFR from4 to 32.48 millionConclusion: The house-to-house campaign is more effective.4.3.5 Project’s output produce other benefitsa. The project’s logframe (Table 1) as well as the impact pathwaydemonstrated in Part II-A can help determine if the positive externality isdue to the project alone, or in conjunction with other factors. In general,we only consider benefits that is due to the project alone. For instance,road construction may lead to an increase in real estate prices within thevicinity of the road, but only if there are business opportunities in the area.A water supply project will increase the influx of tourists, but only if therewill be tourism development in the area.b. If the benefit is attributable to the project alone, the valuation will followthe same rules given above.c. In general, if the economic benefits outweigh the financial benefits, theproject is said to generate positive externalities.4.4 What is the net impact of the project to society?In 4.1 we determined the economic cost of the project’s inputs to society. In 4.2, wedetermined the economic benefit of the project’s output to society. We are nowready to determine the net impact of the project to society. We simply comparethese economic costs and economic benefits.4.4.1 Parameter to useThe project’s net benefits take into consideration the incremental benefitof the project, the cost of the project and any externalities (positive ornegative) that may result from the project. All of these figures should beexpressed in economic values.52RGEdillon January 2006