Adjustment to Salinity in Irrigation Regions: Ex Post Evaluation of the Tragowel Plains Plan
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An early-mid project evaluation of the benefits and costs of the Tragowel Plains Salinity Management
Plan estimated the net cost after six years at A$ 5.5 million. The cumulative cash flows for the water
transfer, drainage and halophyte programs were all positive with benefit to cost ratios (BCRs) of 3.2,
1.3 and 1.1. Inclusion of estimated future benefits and costs to year 30 gave BCRs of 13.7, 1.3 and 4.0
with net present values (NPVs) of A$ 18.8 million, 2.5 million and 0.4 million respectively. Net costs
for other integrated programs including salinity survey, whole farm planning, facilitation of structural
adjustment, revegetation and coordination of implementation reduced the NPV of the first six years of
implementation to A$ 12.1 million. The water transfer program NPV was comparable to the market
value for water right over the period. Only a small proportion of water right was transferred to land
outside the plan area, indicating that the Tragowel Plains remained competitive for resources.