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Potable Water Supply Expansion: The Manila South Water Distribution Project

Author

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  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

Abstract

This paper evaluates a water distribution project using an integrated financial- economic-distributive approach. The economic analysis evaluates the true value of the project’s outputs and inputs, adjusting the financial values for any distortions such as taxes, subsidies, or foreign exchange premium, which cause financial prices to differ from true resource values. The results of the economic analysis indicate that the project, with a positive economic NPV of 2,878 million pesos, could make a very positive economic contribution to the Philippines. Furthermore, since the appraisal did not include the economic value of preventing groundwater salinization in the region, nor any additional value to society (beyond that represented by the consumer’s willingness to pay) of health improvements among the region’s residents, the economic NPV generated by the analysis is actually conservative, understanding the project’s value to the country.

Suggested Citation

  • Glenn Jenkins, 1995. "Potable Water Supply Expansion: The Manila South Water Distribution Project," Development Discussion Papers 1995-05, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:1200
    as

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    Cited by:

    1. MIGARA JAYAWARDENA & Glenn Jenkins & GANGADHAR SHUKLA, 1999. "Control Of Water And Coastal Pollution An Appraisal For Espirito,Brazil," Development Discussion Papers 1999-04, JDI Executive Programs.

    More about this item

    Keywords

    Philippines; water project; economic evaluation;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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