Cost Benefit Analysis of Tempisque Bridge

11 November 2016

Cost Benefit Analysis of Tempisque Bridge In 1992 , Costa Rica ‘s Minister of Public Works and Transport (MOPT benefit-cost analysis suggested it was worthwhile to construct a bridge over Tempisque River to connect the province of Guanacaste to San , Jose Costa Rica ‘s capital . Environmentalists and tourism representatives opposed the construction of the bridge 1 . 1 Reasons for Building the Bridge Population of Guanacaste province is declining ever since the World Bank urged the removal of tariffs protecting Costa Rican agriculture which drove many marginal farms out of business .

Savings in vehicle operating costs and travel time Travel time equals average wage rates of vehicle occupants times number of occupants per vehicle Reduction of one hour in travel time , reduces 42949 for bus 274 for car or pickup , and 194 for heavy truck . Reduce vehicle operating costs .

Vehicle operating costs are a function of distance , speed and condition of road surface Saving in vehicle operating costs 104 . 02 million Saving in travel time 91 .

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16 million 2 . 5 Traffic increase by 30 This is because opening of a new bridge would reduce travel time and thus increase travel time causes one percent increase in traffic . Since the new bridge would reduce travel time by 30 , traffic is expected to increase by 30 Costs of B /C Analysis 3 . 1 Costs on Tourism Business

Increased tourism would increase threat of fires which mainly start by tourist campfires and cigarettes Tourist expenditures 17 million per year 3 . 2 Environmental Cost Increased economic activities would introduce industrial problems such as oil spills which would kill fish Approach roads to the bridges cut through mangrove mash and affect flow of water and health of fish population in the Gulf of Nicoya Threat the preservation of the beauty and environment , especially in the Tempisque Conservation Area

Assumptions of the B . C Analylsis Nicoya Peninsula and San Jose grows at four percent per year (based on road and ferry survey 1987-1991 Tempisque ferry crossing time 55 . 3 minutes Gulf of Nicoya ferry crossing time 150 . 7 minutes 5 . Critiques to the B /C Analysis Average travel time savings did not account for reduced inconvenience and unreliability of the ferry . Ferry did not operate all hours of the day , and sometimes did not operate for days due to mechanical problems Also the analysis failed to estimate the.

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