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Cost Benefit Analysis of Namadgi National Park - Case Study Example

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The paper "Cost-Benefit Analysis of Namadgi National Park" is a perfect example of a case study on finance and accounting. The national park is situated in Canberra and has 106 095 ha. It is situated 50 km from the urban interface. This place is the usual place for the residents during the weekends for picnics barbeques and field trips…
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Name Tutor Task Date Namadgi National Park Background The national park is situated in the Canberra and has 106 095 ha. It is situated 50 km from the urban interface. This place is the usual place for the residents during the weekends for picnics barbeques and field trips. The place is known for the stunning view points that is has a reputation for being one of the places in Australia that is always frequented by a lot of people during the weekends. It is for this reason that the people have found it the place has a great demand for resources such as water. This is for the people in the residents and the visitors of the park. There is also a lot of need for electricity. This is for heating and lighting in the area for the residents and the visitors. Electricity has been known to be used all season especially during the winter season. What is the problem? The residents that surround the park have the growing need of supply and electricity. Moreover, the park as a whole is experiencing some problems. These problems include the cattle from the residents that graze in their land, feral horses, dealing with plants pest and animals and building of resorts that will manage the growing number of visitors. What are the proposal’s objectives? To ensure that the national park remain as reputable as it has always been. This will be to provide all the needed facilities by the residents and the staff in the park so as to be effective. This include, the supply of water and electricity. Moreover, the visitors must feel secure at all cost and the park must look accommodating to all. What are the alternatives? This park is placed under the authoritarian of the Australian capital territory. This will ensure that the visitors are handled with care and they are provided with the security that they require. The water supply can be provided with the river and the waterfall that will be made by the alpine snowy river that is at the national park. This will be very much helpful when it is a question of reducing the high cost in expenditure on water supply. This will also be vulnerable for providing continuous water supply in the area without having to depend on the council. In addition, the authorities should be in a position of providing or redirecting the people who usually graze their cattle on the land. This will help in giving the land a nice site rather than having the visitors having to take precautions of their food as they are having picnic. The security is an important factor that should be considered by both the authorities and the residents. This will be as a part of welcoming the visitors. Therefore, when it is a question of providing water for the community in the area and the visitors, the authorities can go for the nearest dam in the area, which is the Tennent dam. The selection of the dam has been done because of the low cost it provides and this is in regards to sufficient supply of water at a lower cost. The cost of the dam can be shown in the table below. Cost Effectiveness Analysis $ million per ML GL pa Tennent 8 79 Coree 7.65 31 LMWQCC recycling 8.0 22 Water mining 32 24 Present value cost of supplying 1 ML of treated water each year for 20 years. This includes, capital costs and the present value of 20 years of operational costs. Note: LMWQCC is the Lower Molonglo Water Quality Control Centre. Water mining is the use of small-scale water treatment works, which are attached to the sewer mains. (CIE 1997:31) Describe the proposal The management of the park should deal with some issues. These are the management issues and they should be dealt with so that the park can have the perfect reputation among the people who visit the park. These managerial issues should include the issues of conservation. The first conservation that the authorities should deal with is the issues with the cattle. There is always an act of grazing during the summer by the sheep in the land, which is partly located in the national park. It is for this reason that the cattle find themselves grazing in the reserved land. This practice of grazing in the national park is known to be a traditional practice that the people adopted from their ancestors and has proven not to be sustained by the authorities. It is for this reason that the authorities should fence up the land and make sure that the land is free from cattle. The other thing that the authorities in the park should deal with is the feral horses. These houses have been known for damaging the waterfalls in the park, which may result to soil erosion and landslides. These damages can be taken care of by not allowing the horses into the water catchment areas and the park. This will help in the regulation of the amount of damages that can be caused by the horses if they enter these areas. The management should also ensure the control of pest in the region. These pests can be dangerous to the animals and the plants in the region. Therefore, the authorities should control this rapid growth of the pest in the land. The land will be highly conserved if the pests are kept out of picture and the animals and the plants will always be kept healthy. The construction of the alpine resort will be the solution of the congestion of the visitors that frequent the region. This is the best way of making them feel comfortable and welcomed in the area. This will also help them with visitors that come from regions that are far. These visitors will be relieved of the stress of moving every now and then when they are coming to visit. This will go hand in hand with the managing of the visitors. This will also make it easy for the authorities to take care of the visitors with ease, as they will be close to them. The issue of the water supply is also a big issue and therefore, the proposal of the dam will come at the right moment. The supply water will be made to be constant and make it easy for the residents to have the water that is treated and safe for consumption. From the table below, it will be easy to understand how the consumption and the supply of water is made functional. Log frame: Summarizing Tennent Dam Project Design Narrative Summary Measurable Indicators Means of Verification Important Assumptions Goal: (project target) Maximize the wellbeing of Canberra & Queenbeyan Current net worth expenditure gain analysis report Double the goal from previous Goals Target: (aim ) Water Management External liability on water contamination PROJECT TARGET ACHIVEMENT • additional 60 GL water utilization by 2020 • additional 220,000 inhabitants • pollution flow ambient • ACTEW market price • ABS population starts • Yearly SoE Analysis group assessment Purpose to Goal • water quality levels achieved. Outputs: (Referencing conditions) • Dam. • Water management deposit. • channel • drenching station. Externality liability: Corrosion, attrition Individual referencing condition • 48 GL, capacity pa by 2020. • ambient flow of pollution . Project termination • report market prices (asset) • Yearly analysis of SoE Output to Purpose • consistency of utility per inhabitant • water valuation suitability • preserved urban design. Activities: (basic structure) • Environmental power Statement • amassed dam, water management plant & waterway • water running plant, Run dam, & cylinder Out sourced apaisement : • sédiment déposait Inputs: (budget, people, material, time, cost) workforce, • resources • land • river water • EIA submitted • Project budget market prices Activities to Output • EIA accepted • Technology is feasible • Permission for water extraction granted. • Construction principles achieved • Out source views are acceptable. Conditions Precedent Government approval This shows that the project has a logical relationship between: • inputs (labour, land, materials etc) which are used in : • project activities (environmental impact statement; construction of dam, treatment plant, pump & pipeline; etc) to produce a set of: • outputs (physical infrastructure of dam, & other plant) to achieve the project’s: • purpose (increased water consumption) which achieves society’s: • goal (increased welfare of Queenbeyan and Canberra residents). Identify the impacts (costs and benefits) When the project is under way, there are a set of resources that will be used up. These resources include labor, land, water and materials. These resources are seen to be provided by the people in the community. The resources are always influencing the environment indirectly therefore there should be a plan that should be set out so that the land and the organization can be beneficial. The environmental benefit includes the conservation of water, reduction of soil erosion and saving of habitat that include trees and aquatic life. The chart below is an illustration of the impact to the national park. These impacts are presented in the impact chart below. This project on the other hand, should include the participation of other individuals, it is through these people, and this will help in the impact of cost. The individuals include the shareholders the farmers and the authorities. The table below shows the cost benefits of the group and the stake holders. Through the project, it is clear that the cost will be of small amount. Tennent Dam: Incidence of costs and benefits Participant group COSTS BENEFITS Water consumers water bill water consumption (flow) Local community • habitat loss • reduced & degraded river flows Farmers • lost output (flow) • lost land (capital) land price Recreationalists lost recreation ACTEW resources used in operation • productive assets (capital) • increased sales & profit Construction industry Resources used Revenue from construction Government Resources for expansion of complementary infrastructure Dividends from ACTEW Entries in italics are only financial impacts. Other entries are economic (real) impacts. Value the impacts (costs and benefits) Conclusion The cost of the project will influence the people in the area. The people will be able to be provided with jobs through the Australian authorities. This will also help in the expansion of the consumption in the area. The visitors will also have a reason of always wanting to come in the area for their tour. The national park will also be in a position of conserving the plants and the animals in the area. Work cited ACTEW (1996) Schedule of charges and general conditions of supply 1996-97, ACTEW, Canberra. Read More
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