ECONOMIC ASSESSMENT OF DUYRIDGE DAM AS A WATER‐HARVESTING SCHEME IN IRAQ

Abstract

AbstractIraq, home of the Tigris and Euphrates rivers, has survived an extreme deficiency of surface water assets over the years. The gap is due to the decline of the Iraqi water share every year, as well as a high demand for water use from different sectors, particularly agriculture.Dam development has long given significant economic benefits to Iraq in circulating low‐priced electricity and supporting low‐income farmers by supplying them with a free irrigation system (Zakaria et al, 2012). This encouraged domestic consumption and investment.Despite the fact that numerous advantages are expected from dam construction, it should be painstakingly assessed, utilizing cost–benefit analysis before endorsement.This study aims to evaluate the capability of the Duyridge Dam in Maysan Governorate to harvest rainwater in Iraq and meet the local populations' needs as well as the geological, topographic, hydrological and economic requisites of water.The result indicates that the net present costs and net present benefits at a 10% discount rate are equal to US$18.8 million and US$20.2 million respectively, while the net present value is equal to US$179 000 and the benefit–cost ratio is equal to 1.08.Likewise, the results show that the internal rate of return is 11% and the payback of the project period is 5 years. The sensitivity analysis of the dam was estimated as well. © 2020 John Wiley & Sons, Ltd.