Financial analysis for the existence of proposed water supply scheme in bibile

Abstract

This study area consists of 31 Grama Niladari Divisions of Bibile DSD.The objective of this study to analyze the financial viability of existence of proposed water supply scheme in Bibile. In this study both primary and secondary data were used. The primary data for this study collected by the information provided by National Water Supply and Drainage Board (NWSDB), Divisional Medical officer of Health (MOH), Divisional Secretariat Division (DSD) office and GN’s of relevant GND’s. The total cost estimate to implementation of proposed water supply scheme in Bibile was estimated according to the rates of NWSDB. The operation and maintenance cost of project was estimated for the period of design life of proposed project. Finally Net present value (NPV) and Internal rate of return (IRR) were calculated to decide the viability of the existence of proposed water supply scheme in Bibilethe tentative cost estimate for proposed water supply scheme in Bibile was estimated as 2, 750 million Sri Lankan Rupees. As per the cost benefit analysis by considering the capital cost as Rs.2, 750 million with the loan interest for development financing, Loan payback period of 20 years with the Grace period of 3 years, the project is operationally viable financial to obtain a loan or any other financial assistance to implement the proposed since the NPV is positive up to 8% of discounting rate. It is proposed to obtain 2,750 million financial assistance within the 8 % of discounting rate from suitable donor agency to implement the project