Evaluation of Water Obtained from Flood Spreading Project in GarehBygan-Fasa

Spreading flood in GarehBygan-Fasa district has resulted significant improvement in ground water resources of the district. So, yearly water providing capacity of the district has increased from 4.08 to over 14.03 million m3. However, more than 26.9 million m3 is exploited now that is beyond of the capacity of the district’s water resources. The main objective of this study is the environmental evaluation of the Gareh Bygan project. Environmental value of the project is considered equal to the value of the water provided by the project. Water evaluation was also done in two parts, the over drawn water that is beyond the project capacity and the water that has been available after performing the project within the project capacity. Value of the overdrawn was estimated in two approaches. First the gross margin obtained from the over drown water and based on residual method was attributed to water and second demand for water was estimated. Based on the first approach, price of each m3 overdrawn water was estimated 460 Rials. The corresponding figure obtained from demand approach, was 399.6 Rials, while the price of water within the project capacity was estimated more than 2770 Rials. Based on the residual method total benefits obtained from over drown and within project capacity water was evaluated 5.93 and 27.57 billion Rials, respectively. It was also found that water price is highly dependent on the applied amount of water.