Open AccessEconomic feasibility analysis of Gintung Dam
Author(s) -
Atina Umi Kalsum,
D. Sutjiningsih,
E. Anggraheni,
S. Murniningsih
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/599/1/012053
Subject(s) - benefit–cost ratio , economic analysis , net present value , flood control , investment (military) , cost–benefit analysis , valuation (finance) , economic evaluation , economic feasibility , present value , investment analysis , business , flood myth , operations management , actuarial science , engineering , economics , environmental economics , finance , agricultural economics , geography , production (economics) , financial risk , law , macroeconomics , ecology , archaeology , biology , microeconomics , political science , politics
Gintung Dam is a dam resulting from the post-disaster reconstruction and rehabilitation in 2009. In this study, economic feasibility analysis post reconstruction and rehabilitation is carried out. The feasibility analysis is reviewed based on economic value of the benefits of Gintung Dam and investment cost as well as Operational and Maintenance (O&M) costs. Economic valuation, which is an attempt to provide quantitative value to the goods and services produced by natural resources and the environment, is carried out for the benefits of dam. The method used is the investment criteria method which uses NPV, BCR, PBP, and IRR as parameters in determining the feasibility of project. Based on the results, for Gintung Dam with its function as a flood control was obtained NPV = Rp.14,023,230,130.29, BCR = 1.88, PBP = 27 years, and IRR = 12% and as groundwater conservation was obtained, NPV = Rp. 87,704,518,835.06, BCR = 6.51, PBP = 2.7 years, and IRR = 46.25%. The results of the analysis shows that the Gintung Dam reconstruction and rehabilitation project is economically feasible with the value results NPV > 0, BCR > 1, PBP interest rate used (10%).