Evaluation of small irrigation projects in the Philippines : the case of small water impounding projects : a thesis submitted in partial fulfilment of the requirements for the degree of Masters in Agricultural Economics
An economic evaluation of the proposed Camagsingalan Small Water Impounding Project was conducted using the benefit-cost analysis framework to determine its economic desirability to the society. The project will be located in Sual Pangasinan and envisioned to provide irrigation water to about 55 hectares which will give the upland farmers an oportunity to shift from dryland to irrigated farming systems. The recommended cropping pattern for the project area is a crop of rice followed by a crop of mungbean or garlic. Moreover, about 20 hectares each of mango and cashew will be planted in the surrounding portion of the watershed area. Based on the twenty period economic analyis, the Camagsingalan Small Water Impouding Project would generate a substantial gain to the province and to the nation in general. At discount rate of 15 per cent, the project will result in a Net Presnt Value of P 536,194.00 using the Cropping Pattern 1 and an Internal Rate of Return (IRR) of 39 percent. On the other hand Cropping Pattern 2 will result in a Net Present Value of P 5,911,844.00 and an Internal Rate of Return of 41 per cent. In summary, the project based on quantifiable costs and benefits is economically desirable and worthwhile undertaking. However, a number of enviromental problems have not been dealt with in the economic analysis. These include the possible environmental and socio-economic problems that will result due to the construction of the SWIM project. Though the scale of the project is small, the extent of effect is however not yet established. Water pricing is not also dealt with in the analyis.