Economic feasibility analysis of Gintung Dam

Gintung Dam is a dam resulting from the post-disaster reconstruction and rehabilitation in 2009. In this study, economic feasibility analysis post reconstruction and rehabilitation is carried out. The feasibility analysis is reviewed based on economic value of the benefits of Gintung Dam and investment cost as well as Operational and Maintenance (O&M) costs. Economic valuation, which is an attempt to provide quantitative value to the goods and services produced by natural resources and the environment, is carried out for the benefits of dam. The method used is the investment criteria method which uses NPV, BCR, PBP, and IRR as parameters in determining the feasibility of project. Based on the results, for Gintung Dam with its function as a flood control was obtained NPV = Rp.14,023,230,130.29, BCR = 1.88, PBP = 27 years, and IRR = 12% and as groundwater conservation was obtained, NPV = Rp. 87,704,518,835.06, BCR = 6.51, PBP = 2.7 years, and IRR = 46.25%. The results of the analysis shows that the Gintung Dam reconstruction and rehabilitation project is economically feasible with the value results NPV > 0, BCR > 1, PBP < project life span (100 years), and IRR > interest rate used (10%).