CONTROL OF WATER AND COASTAL POLLUTION AN APPRAISAL FOR ESPIRITO,BRAZIL

A shortage of clean drinking water, the lack of an adequate sewage system, and rapid environmental degradation from waste dumping have prompted the State of Espirito Santo in Brazil to consider expanding the water supply and sewage disposal system in the region. This paper reports on the finding of a study to appraise the viability of a project to alleviate some of the shortfall in potable water and sewage service in the State. Recommendations are developed for improved investment and operational strategies through an integrated analysis of the financial, economic, distributive and risk aspect of the project. Result of the study indicate that even through the project, in its current state, is not likely to be financially profitable, it is expected to create significant economic gains for society through the reduction in environmental pollution. Furthermore, improvements in operation and management practices that address the issue of water leakage, invoicing and collections are keys to improving the financial viability, and perhaps ultimately, the economic viability of the system. A particular challenge provided by the study has been the measurement of intangible environmental benefit and their inclusion in the projects analysis of discounted net economic benefits. Without the measure of these benefits the overall economic value produced by this project would be seriously understated.