Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

Norm compliance must also be considered in the demand estimation. According to the wastemanagement hierarchy and the considerations included in the applied directives (for example thePackaging Directive 2004/12/EC), the need for waste management treatment is expected to beincreasingly satisfied by prevention, recycling, composting and energy recovery (heat or power).Consequently, the size of an incinerator or a landfill has to be gauged in relation to these future trends.The steps for the demand estimation are:- the demand forecast which is derived from current demand and the demographic and industrialgrowth predictions;- the adjusted demand, according to the potential changes in waste producer behaviour and according tothe compliance with current and expected policies and legislations.Phases of the projectThe following different phases of the project must be specified: conception and financial plan, technicalstudies, investigation phase to find an appropriate site, building phase and management phase.Any delays occurring in these phases could be important, especially the search time required for finding anappropriate site. For hazardous treatment plants, for example, there is often hostility observed from thepopulation, which, may result in disruptions to the building and the normal managing of the plant withnegative consequences on financial and economic flows (see also the section on risk assessment).MAIN ENGINEERING FEATURES TO BE CHECKED AND ANALYSEDThe description of the technical characteristics of the plant are crucial for a better comprehension of the economic and sociallocal impacts of the projects, its environmental impacts and the total financial and economic costs and benefits involved. Inaddition, detailed technical information is required for the monitoring and the evaluation activities required by Structural Fundsevaluation process.This section should at least give the following data:- basic socio-economic data: the number of inhabitants served; the number and the type of productive structures served;- basic data on waste: the type (municipal waste, hazardous waste, packaging waste, waste oils) and quantity (t/d, t/y, t/h) ofproduct to be treated; secondary raw materials recovered; energy produced (Mega Joules of heat or MWh of power);- physical features: area occupied by the plant (in thousand m 2 ), covered and uncovered storage areas (in thousands m 2 ), thedistance from main agglomerates and discharge systems for effluent water and fumes;- information on building techniques and building phases;- processing techniques for the treatment plant: technology used, energy and material consumed and others goods and servicesconsumed.3.2.1.4 Financial analysisThe financial inflows and outflows are:Financial inflowsFinancial outflows• Price for treatment paid by private users • Investment costs• Price for treatment paid by public users - Land acquisition• Sales of products recovered- Building(secondary materials and compost) - Equipments• Sales of energy produced (heat and power) - Replacement costs- Feasibility investment studies and all other intangibleassets• Operating costs- Energy- Materials- Services- Technical and administrative personnel costs- Maintenance costs- Management and administrative costs88