Fisheries economics and trade
UK and Ireland
Dunmore East Fishery Harbour Improvement – Cost Benefit Analysis Ireland
Waterford in Business - Project Dates:
September 2001 - October 2001
Description of Project:
The harbour was in urgent need of development to alleviate problems of over-crowding and inadequate protection of vessels by the breakwater. In order to evaluate whether public funds could justifiably be spent on re-development, a cost benefit analysis was required.
The analysis used cost estimates from existing engineering studies already completed, and following the quantification of all fishing and non-fishing economic benefits, calculated NPVs and IRRs of different investment options using a discounted cash flow analysis. Non-quantifiable benefits, such as improved safety, were also considered. A sensitivity analysis was also conducted to assess the sensitivity of the model to key assumptions. The analysis also enabled decision makers to make an informed assessment of whether funding should be provided.