Social cost-benefit analysis of interconnection alternatives between Pucallpa (Ucayali and Cruzeiro do Sul (Acre)
| Areas | : | Natural resources, extractive industries and social conflict |
|---|---|---|
| Researcher/s in charge | : | Manuel Glave |
| Other researchers | : | Álvaro Hopkins |
| Execution time | : | April 2013 - March 2014 |
Presentation
Infrastructure development in the Amazon region, specifically, the construction or improvement of roads and/or railways, represents a dilemma in decision-making and governance at local, regional and national level. On the one hand, infrastructure is a potential instrument for the exploitation of natural resources and local and regional development and, on the other, it generates a series of environmental and social impacts. Therefore, it is necessary to assess the feasibility of infrastructure projects so that they consider and appraise the economic value of these impacts in order to promote a positive net social benefit. One of the infrastructure works recently proposed is the road that will connect the cities of Pucallpa in Peru and Cruzeiro do Sul in Brazil. This road would cross an Amazonian area of high relevance in terms of biodiversity (Cordillera del Divisor) and would affect areas of influence of protected areas in both countries.
In 2011, Conservación Estratégica (CSF) and GRADE performed an analysis of the financial viability of the Pucallpa – Cruzeiro do Sul road interconnection project (see Research Progress Report 4) that suggests that the project would not be economically viable given that the estimated flow of vehicles along that road would not be sufficient to compensate the investment. This study, however, did not consider the environmental and social externalities that the road would generate and focused only on the direct area of the project. Furthermore, in the past years, the railway interconnection alternative has generated much expectation.
In this respect, the main goals of this new research work (under an agreement between CSF and GRADE, with support from The Nature Conservancy (TNC) include the updating of the economic feasibility of the Pucallpa – Cruzeiro do Sul road, as well as a first approach to appraising environmental and social externalities of the road. In addition, the study will also address in a preliminary way the social cost-benefit analysis of the railway, including the environmental and social externalities.
