The economic analysis for the Project focuses on the overall project
and the four subprojects which are assumed to represent the range of physical
conditions of the Project areas, and affect the development and/or rehabilitation of forestlands. Specific development activities were identified
for implementation at each core subproject area and were deemed
replicable for the agro-ecological zone of the subproject. Each subproject
includes different levels of eight (financially tested) forestry models, subproject-
specific project administration cost, and other capital investments.
The economic analysis further makes assumptions with respect to: (i) foreign
exchange rates, (ii) opportunity cost of labor, (iii) subproject costs,
and (iv) subproject benefits. The economic analysis performed was based
on comparison of the project viability against the without-project scenario.
The economic analysis for the Project focuses on the overall projectand the four subprojects which are assumed to represent the range of physicalconditions of the Project areas, and affect the development and/or rehabilitation of forestlands. Specific development activities were identifiedfor implementation at each core subproject area and were deemedreplicable for the agro-ecological zone of the subproject. Each subprojectincludes different levels of eight (financially tested) forestry models, subproject-specific project administration cost, and other capital investments.The economic analysis further makes assumptions with respect to: (i) foreignexchange rates, (ii) opportunity cost of labor, (iii) subproject costs,and (iv) subproject benefits. The economic analysis performed was basedon comparison of the project viability against the without-project scenario.
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