WinDASI Exercise: NGAMO 2: An irrigation project. Impacts of irrigation and mechanisation on traditional farms
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This module presents NGAMO2, a practical step-by-step exercise in Cost Benefit Analysis (CBA) of investment projects, to be run with the WinDASI software. (the word NGAMO comes from the name of the zone of the original project that was located in Myanmar). The goal of this exercise is to analyze the technical feasibility of the irrigation project at farm level. The project analyst has to solve two major problems due to the expansion of production generated by the new irrigation scheme: excess de mand of labour compared with the supply available form the farm household and a lack of draught animals in the peak periods. The reader will see how project constraints are solved and which are the main changes with versus the without project situations (WiP versus WoP). Moreover, a new constraint is introduced, which is the financing constraint, with the purpose to analyze the economic impact of the credit component by calculating project indicators such as incremental NPV, IRR and Benefit/Cost Ratio and comparing them before and after the financing.