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COST BENEFIT ANALYSIS OF
URBAN TREE MANAGEMENT
IN GOIANIA
Ricardo Magno
Senior Project Manager
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Population
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Precipitation
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Street Tree Master Plan
• Duration of 10-20 years• Sample inventory:
• 38 874 seedlings• 5% tree removal
• operational procedures • 13 pg of testimonials (?!)
http://www.goiania.go.gov.br/shtml/amma/pdau.shtml
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Project Analysis
Project
Risk
EconomicalFinancial Economical
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Determine Program
Objectives
Enumerate Alternatives
Recognize Constrains
Methodology
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• Research & Development (R&D) and overhead power lines upgrades (20%)
• Tree trimming residue compost (1%)
• Air conditioning energy savings (8%)
• Real estate added value (62%)
• Eradicate tree fall (8%)
Benefits
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• Seedlings plantation (30%)
• Tree removal (35%)
• Stump grinding and sidewalk reconstruction (35%)
• Seedling irrigation (0%)
Costs
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Discount rate
USA
0.75%1996
2012
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1
Effect of the discount rate
30
0.78
4.46
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Cost Benefit
R$ 52 000 000
R$ 30 000 000
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Benefit–cost ratio
1.71
>1
<1
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More information
Parameter Value Meaning
Cost Benefit rate 1.7 Benefits are generated
Net Present Value R$ 22 000 000 Add value
Total Cost R$ 30 000 000 Investment
Payback 0 Time to pay the project
Execution 10 years
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Thank You!
Ricardo Magno Santos AntunesProject Manager
+55 (31) 3201-1234+55 (31) 9866-7825
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