COST BENEFIT ANALYSIS OF URBAN TREE MANAGEMENT

IN GOIANIA

Ricardo Magno Senior Project Manager

ricardo.magno@prbambiental.com.br

Population

1.3 million

.5 million

Precipitation

Goiânia

London

Death Valley

950 000 trees in the streets

and…

328 different species

+500 trees fell down in 2011

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

Project Analysis

Project

Risk

EconomicalFinancial Economical

Determine Program

Objectives

Enumerate Alternatives

Recognize Constrains

Methodology

• 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

• Seedlings plantation (30%)• Tree removal (35%)• Stump grinding and sidewalk reconstruction

(35%)• Seedling irrigation (0%)

Costs

Discount rate

USA

0.75%1996 2012

1

Effect of the discount rate

30

0.78

+20 years

rate: 20%

4.46rate: 10%

Cost Benefit

R$ 52 000 000

R$ 30 000 000

Benefit–cost ratio

1.71

>1

<1

More information

Parameter Value MeaningCost 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

Thank You!

Ricardo Magno Santos AntunesProject Manager

+55 (31) 3201-1234+55 (31) 9866-7825

ricardo.magno@prbambiental.com.brwww.prbambiental.com.br