Cost and benefits analysis - Assignment Example

Cost-Benefit Analysis of Rebuilding Healthcare System Project The Need for the Project in Afghanistan Afghanistan is one of the third world countries that are characterized by inadequate supply of safe and quality water both for domestic and commercial use. In Afghanistan, water is shortage is a perennial problem that affects the rural and the urban residents. A study conducted by the World Health Organization (WHO) established that over three-quarters of the population consume contaminated water that is risky for their health.

Besides, ten percent of new born babies succumb before reaching five years from preventable waterborne diseases. This problem is further compounded by the fact that more nearly 90% of the Afghanistan population openly defecate. Solving this problem, therefore, calls for massive water infrastructural development particularly in the rural areas in order to increase access to safe and clean water that will be fundamental in improving the quality of life among the Afghans.Project Projected Costs (USD Millions)Social Benefit & Marginal Contribution Sustainable Water Supply and Sanitation 55Providing the locals with the opportunity engage in water, hygiene, and sanitation leadership and mentorship programs.

Increased access to quality and clean water to more than 90 percent of the population.Capital mobilization, hence expanding the contribution of the private sector in the provision of WASH services and goods.Reducing child mortality rate particularly those waterborne related deaths.Execution of parallel hygiene and health education and training program.Strengthening & Decentralizing Pharmaceutical Systems and Basic Package of Health Services25Improving access to quality and affordable medicine and care.

Help public sector pharmacists manage their facilities and stores, hence promoting improved medicine use and prescription.Managing the supply of drugs and medicines.Conducting TV and Radio programs that teach care seekers on proper medicine and drug use.Increasing access to medicines that are life-saving through improved inventory management.Basic Support for Institutionalizing Child Survival 10Improving nutritional requirements and healthcare for the new born babies. Educating parents and children care professionals on child related health issues and the importance of proper child nutrition.

Organizing workshops and programs about family planning.Outsourcing financial resources through donors and sponsors to fund health care services and programs. Total Costs & Benefits90Decision Making RuleBases on the above cost-benefit analysis, there is no doubt that the projects would be beneficial as they have multiple social benefits. However, given the limited resources and the fact that these projects are mutually exclusive, hence they these projects cannot be simultaneously undertaken. Therefore, acceptance of one project means forgoing the other two projects.

For this reason, the investment project that maximizes on the social and economic benefits is selected, but taking into account the cost incurred in implementing the project. From the cost-benefit table (above), although costly compared to the other two, Building Sustainable Water Supply and Sanitation would more beneficial to the society. Unlike the other projects, the construction of Sustainable Water Supply and Sanitation in Afghanistan would increase access to quality and safe water, thereby preventing the occurrence of waterborne diseases.

This investment project would directly benefit over 90 percent of the population. Besides, the construction of Sustainable Water Supply and Sanitation in Afghanistan will reduce the need for medical care and also reduce to a significant decline in child mortality rate. Therefore, implementing this project would reduce the need for the other two proposed projects. Work CitedBoardman, N. E. Cost-benefit Analysis: Concepts and Practice (3rd ed.). Upper Saddle River, NJ: Prentice Hall, 2006.