r - part - usaid

project in this sense represents the value of the country's
resources employed in the project. Interaal taxes ax3 tharefore
excluded. The *rue cost, or: qCshadow price9*, 0,' lal,our to a
country with high unenplopent might be close lo zero.
Secondary costs or benefits, wspin-offsH: which would not be the
concern of a private company, but which night significantly
affect the national economy, must be evaluated and included in
an econo~ic appraisal.
A socio-ecanomic appraisal Builds upon the rationale of the
economic apprafszl, but also attenpts to determine the extent to
which the prsject achieves certain tFsocialH goals of the
government. The glvalueM of these factors is then built into the
agpraisal. Examples of such social goals might be the
government's dete~rmination t~ value be~efits distributed widely
to the poor mare highly than profits which accrue to the few who
are already wealthy; perhaps conversely, a government priority
xight he on the generation of savings rather than consumption
expenditure; or a national self-sufficiency in an industry might
be considered more important than the economic profitability of
that industry. Assigning values, or tfweightsw, to these
factors, is difficult and controvexsia2. The view is often
expressed that these factors should be kept out of the
calculations and left to the political decision-makers, The
consultants have taken that view in presenting this report, and
no arternpt is made to cdjust the figures to arrive at a
soeio-economic appraisal.
The inherent problem of appraising a groundwater
develop~ent project lies in assigning monetary values to the
benefits. In a project providing water solely for irrigation
the benefits would take the fam of increased produetian on the
irrigated land, and could be valued. The water provided from
wells constructed during the CGD2, however, prozuce a number of
benefits, many of which are not readily quantifiable. These are
discussed m ore fully in Section 5.0, but include the following:-
Improved health from cleaner water
Xore ti=@ available Ecr leisure or economic activities
from less time taken to fetch water
Increased economic activities from the ability to keep
larger number of livestock
Increased accessibility to pasture during dry season
Reduced or eliminated need to move household during dry
58dSOrr
Actual saving of life - both of people and livestock -
during periods of acute drought
Increased ability of the government to provide social
services, such zs scb0o3s and clinics, as a result of
nomadic csnxunities settling pemanently around well sites
Other benefits are n3 docbt produced by the constructlsn of