Cost-Benefit Analysis of A Public Infrastructure Project Assignment

Cost-Benefit Analysis of A Public Infrastructure Project - Assignment Example Thus, to come up with a public infrastructure, several factors will be considered to look at both the advantage and causality in order to achieve the optimal benefit that is required. Public infrastructure is considered to be of good interest to the society if its final outcome benefits surpass the cost of implementing the total project. If the cost of implementing the infrastructure is more than the benefit the society is supposed to enjoy after its completion, then, the project is of no much benefit to the society. To realize the cost benefit of a public infrastructure, a cost benefit analyses is carried out to investigate the benefit the society is expected to achieve once the said infrastructure is completed. If the result shows that the project has a positive benefit, then, the infrastructure should be implemented. If the result on the other side reveals that the benefits of the project upon completion reflect negative benefit, then, the project should be dropped (Campbell and B rown, 15). 1.1Project description The public infrastructure that is illustrated under this paper is of power plant construction nature which is located in Middle East and North African region. This region has a high potential of solar and wind energy because it receives a lot of energy from sun in six hours than what a man consumes in one year and is home to top sites of wind potential. This project is expected to generate electricity by use of massive set up of solar and wind farms networks and connect the power to Europe through a Europe- Mediterranean electricity network. A high voltage direct current (HDVC) transmission cables will be used in the transmission of the power. The power plant will involve spreading of concentrating solar power systems, wind parks and photovoltaic systems in desert of North Africa in places like Sahara desert. This means that the power plant will produce energy that is renewable instead of use of fossil fuel that is not renewable. This project will p rovide a substantial demand of electricity in Middle East and Northern Africa region and a 15% of electricity need in Europe. Thus, due to the fact that this project is expected to benefit those three regions, it has being dubbed as EUMENA which means European Union, Middle East and Northern Africa. Investment under this public infrastructure is expected to cost up to 400 billion pounds by 2050. Under this project, Europe is expected to lead in fighting climate change and economies of the Northern African countries and Europe, grow due to green house gas emissions limitation. This project has the potential to satisfy 15 percent of the electricity demand in Europe and much needed electricity in Middle East and North Africa. 240,000 jobs in Germany are likely to be created if this project is implemented and generate electricity worth 2 trillion by 2050. Energy wastage is expected to be reduced under this project because it will enable transfer of energy from areas with surplus to area s it is needed. The grid will help in taking advantage of the large amounts of energy that is likely to be sourced from large scale sources of renewable energy that are remote. The construction of the transmission grid will reduce difference between actual generating capacity and the minimum