The capital costs of constructing the road and carrying the limestone
From the quarry the cement plant consist of the costs of the road, the
Trucks to carry the limestone from the quarry to the waterhead, a jetty at
The waterhead, a grab to transfer thelimestone from the trucks to the
Barges, and tugs and barges tgo carry the limestone from the waterhead
To the cementplant.The costs of a jetty at the cement plant and of equipment to unload the
Barges are not included because they are the same wether or not the road is built.
The financial costs of the road are estimated at Rs108 million. To
Calculate economic cost, three adjustments are necessary. First, taxes of
Rs9.0 million must be deducted. Second, a shadow rate of 1.75 times the
Official exchange rate should be applied to the Rs30 million foreing ex-
Change component of the project. This adjustment incrcases these costs
From Rs30 milllion to Rs52.5 milllion, orby Rs22.5 million. Since the
Area suffers from widespread unemployment and underemployment.