The economic costs of each subproject were derived by adjusting the
financial costs of different models (excluding price escalation, taxes, and duties)
by the opportunity cost of labor and the shadow exchange rate. In addition,
the subproject’s share of projectwide costs of construction/improvement
in the Project facilities, consultancy services, vehicles and equipment, and overseas
training were also included in the subproject cost estimates. The economic cost
of nontradable items were based on the prevailing market prices, which are
then assumed to remain unchanged in real terms (at constant 1996 prices).
Costs have been adjusted to reflect border prices using shadow pricing