An economic analysis of the Kang Krachan multi-purpose water development project, Petchburi, Thailand Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/xk81jn232

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  • The Petchburi Irrigation Project was built in the southern part of the Central Plain of Thailand in 1942. The purpose of the project was to divert water from the Petchburi River to irrigate the principal part of the Petchburi Plain where lands were used for rice and upland crop production. At present, however, a serious water shortage both for agricultural and domestic uses occurs in the areas outside of the project. The lands on the northern part of the plain are seriously in need of water for irrigation because the available inflow of the river is not sufficient to irrigate these lands in the wet season. As the river decreases its flow in the dry season, there is practically no water delivered to the southern part of the plain for domestic use. The water shortage becomes more serious every year due to population growth and the expansion of cash crop production during the dry season. Water conservation through dam construction and extension of the existing irrigation system is considered a feasible way of increasing the amount of water required in the areas where the people are suffering from a desperate shortage of water. The additional works to the existing Petchburi Project under the name of "Kang Krachan Project" is proposed to fill the water requirements of the area. This project is designed as multi-purpose and will provide supplementary water for the existing Petchburi Project, water to irrigate new lands, and will provide for flood control, water for domestic use, and hydroelectric power. The objectives of this study are:. (1) to determine the general economic feasibility of the proposed Kang Krachan Project through an analysis of costs and benefits, (2) to recommend a possible method of allocating reimbursable costs, (3) to allocate costs to various purposes. The U. S. Bureau of Reclamation methods with some modification of computing direct, indirect, and public benefits were used as the basis of analysis. The average total project benefits per rai are found to be 566 bahts of which direct benefits account for 329 bahts, indirect benefits 147 bahts, public benefits 73 bahts, benefits from preventing flood damage 5 bahts, and benefits from domestic water amount to 12 bahts per rai. The analysis indicates the total project benefit-cost ratio to be 6.4, while the total irrigation benefit-cost ratio is 6. 3, and the direct irrigation benefit-cost ratio is 3. 8. These benefit-cost ratios are very favorable. The project is, therefore, considered economically feasible. For the allocation of the multi-purpose project costs in Thailand, the separable costs-remaining benefits method is applicable. Because all required data are not available, the cost allocation of the Kang Krachan Project is not shown in the analysis. The problem of repayment by direct beneficiaries has thus far never occurred in Thailand. The costs of all previous projects have been repaid by the federal taxpayers. Thai farmers have not been charged for repayment of construction costs of primary facilities. However, the government proposed to use a land tax for the Kang Krachan Project area. Repayment of construction costs of this project is proposed from a land tax, municipal tax on domestic water use and revenues derived from the differential in the domestic and export price of rice. In the future, all water development projects in Thailand should be multi-purpose. Benefit-cost analysis by the U. S. Bureau of Reclamation methods and the allocation of project costs by the separable costs-remaining benefits method will be useful in determining economic feasibility and allocation of reimbursable costs to direct beneficiaries.
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