The Economic Analysis And Evaluation On Flood Control Project Of Yellow River Backward Position

The lower reach of Yellow River flood control project, which isAsia Development Bank loaned, aims to solve the increasing riverbed level, the poor embankment quality, the poor quality of Dongping lake embankment, nonstandard construction of the inner floodplain village. The following flood control works will be included: (i) existing embankment strengthening, (ii) river training, (iii) Dongping lake embankment strengthening, construction of the inner floodplain village. The construction period that cost RMB 2.8 billion Yuan is 5 years. The economic life of the project structures is conservatively assumed at 30 years. Estimated benefits were annualized by adjusting the total estimated flood damages to the probabilities of high river flow and the breach embankment, under the "with "and "without" project scenarios. The following benefits are included: (i) benefit of embankment strengthening, (ii) benefit of Dongping lake embankment strengthening, (iii) benefit of inner floodplain construction.The estimated economic internal rate of return (EIRR) is 15.34 percent, economic net present value (ENPV) is RMB 582.0 million, economic benefit cost rate (EBCR) is 1.286. All these proved that this program is appropriate in economic evaluation.