A Manual for Cost Benefit Analysis in South Africa with Special Reference to Water Resource Development provides a structured framework for evaluating public investment projects, particularly large-scale water resource schemes. Developed within the South African policy context, it guides analysts in identifying, quantifying and valuing economic, social and environmental costs and benefits associated with dams, irrigation systems, bulk water supply and multipurpose water infrastructure.
The manual emphasizes the use of economic (shadow) pricing, treatment of externalities, discounting of long-term project flows, and calculation of indicators such as Net Present Value, Benefit-Cost Ratio and Internal Rate of Return. Special attention is given to water allocation efficiency, opportunity costs, regional development impacts and environmental trade-offs.
It also addresses risk analysis, sensitivity testing and distributional considerations to ensure equitable outcomes. Overall, the manual supports transparent, consistent and economically sound decision-making in South Africa’s water resource planning and investment processes.
