Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

3.4.4 Forests and parks3.4.4.1 Project objectivesForestry and park projects can have different primary objectives:- increasing the production of wood or cork for commercial or energy purposes;- safeguarding the environment (prevention of soil erosion, control of water, environmental protection);- promotion of tourist-recreational activities.3.4.4.2 Project identificationThe main features to take into consideration are shown in the box below:MAIN FEATURES TO BE CHECKED AND ANALYSEDTechnical and engineering features (for example):- geographic position and altitude;- surface area;- maps showing position and description of biotypes and other interesting natural phenomena (waterfalls, caves, springs, etc.).Functional features (for example):- detailed description of projected operations, the extent (number of trees to be removed or planted, etc.) and methodologies (chosen species,type of cultivation, etc.), time period, form of management, type of treatment and execution period;- number, position and lay-out of service buildings, such as visitor centres, lodgings, canteens, observation posts, warehouses, sawmills;- number, position and capacity of possible tourist reception structures, such as hotels, refuges, restaurants, etc.;- access routes and links with the local and regional road networks.3.4.4.3 Feasibility and option analysisIn order to evaluate the feasibility of the project, different variables need to be analysed according to thetype of project:- for projects directed at increasing the production of wood or cork, the demand for the type of wood tobe produced;- for projects directed at promoting tourist-recreational activities, the forecast trends for tourist flows,including their seasonal trends etc.An impact analysis showing the sustainability of the proposed project, from an environmental point ofview, would be helpful.Option analyses to be considered for comparisons are:- different areas of intervention within the same forestry district;- different methodologies for amelioration, reforestation and cultivation;- different routes or typologies for footpaths, tracks and equipped areas;- different positioning of entrances, visitor centres, car parks, camp sites, etc. for projects for equippedparks and forested areas.3.4.4.4 Financial analysisThe financial inflows and outflows are:Financial inflowsFinancial outflows• Admission fees • Investment costs• Sales of collateral services - works• Sales of commercial activities - general expenses- expenses for special equipment• Operating costs- raw materials for operation- maintenance- administrative personnel costs124