Cost-benefit analysis of an irrigation unit with treated wastewater in Chihuahua, Mexico

Abstract

The reuse of water in agriculture is an alternative to guarantee food security in Mexico and efficient management of this resource. The objective was to conduct an economic evaluation by benefit-cost analysis in an irrigation district of treated wastewater (TWW) in Tabalaopa-Aldama, Chihuahua, Mexico. The cost-benefit methodology was used to estimate the economic assessment of public projects. The results indicated that the project operation would obtain a net social value of $1,054.4 million, a social return intern fee of 31.19 %, and a cost-benefit relation of 2.48. Even if the costs and benefits increase by up to 30 %, the project would still be economically viable and provide social benefits. The start-up of a TWW irrigation district will generate economic benefits for society and promote the reduction of environmental impact on the agricultural land in Tabalaopa, Aldama, Chihuahua, Mexico.