COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT IN GOIÂNIA
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COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT IN GOIÂNIA elaborated and presented by Ricardo Magno to
Transcript of COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT IN GOIÂNIA
COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT
IN GOIANIA
Ricardo Magno Senior Project Manager
Population
1.3 million
.5 million
Precipitation
Goiânia
London
Death Valley
950 000 trees in the streets
and…
328 different species
+500 trees fell down in 2011
Street Tree Master Plan
• Duration of 10-20 years• Sample inventory:• 38 874 seedlings• 5% tree removal
• operational procedures • 13 pg of testimonials (?!)
http://www.goiania.go.gov.br/shtml/amma/pdau.shtml
Ricardo Magno
Add details of master plan
Project Analysis
Project
Risk
EconomicalFinancial Economical
Determine Program
Objectives
Enumerate Alternatives
Recognize Constrains
Methodology
• Research & Development (R&D) and overhead power lines upgrades (20%)
• Tree trimming residue compost (1%)• Air conditioning energy savings (8%)• Real estate added value (62%)• Eradicate tree fall (8%)
Benefits
• Seedlings plantation (30%)• Tree removal (35%)• Stump grinding and sidewalk reconstruction
(35%)• Seedling irrigation (0%)
Costs
Discount rate
USA
0.75%1996 2012
1
Effect of the discount rate
30
0.78
+20 years
rate: 20%
4.46rate: 10%
Cost Benefit
R$ 52 000 000
R$ 30 000 000
Benefit–cost ratio
1.71
>1
<1
More information
Parameter Value MeaningCost Benefit rate 1.7 Benefits are generated
Net Present Value R$ 22 000 000 Add value
Total Cost R$ 30 000 000 Investment
Payback 0 Time to pay the project
Execution 10 years
Thank You!
Ricardo Magno Santos AntunesProject Manager
+55 (31) 3201-1234+55 (31) 9866-7825
