Assessment of existing infrastructure of the selected IDPs settlements: Cost-Benefit Analysis

Assessment of existing infrastructure of the selected IDPs settlements: Cost-Benefit AnalysisThe Conflict between Azerbaijan and Armenia over Nagorno Karabakh led to displacement of 576.000 Azerbaijani residents of Karabakh (IDPs). The government of Azerbaijan dedicated significant resources to new housing for IDPs living in collective centers. During past 25 years after Nagorno Karabagh conflict around 80 IDPs settlement were established as a part of several state programs on improving living conditions of IDPs. The deterioration of social and physical infrastructure in 36 settlements that built more than a decade ago was the first concern for IDPs residing in those settlements, as is the main pillar of their living standards. This consulting services aimed at conducting the economic cost-benefit assessment for infrastructure investments per each settlement to rank the settlements as per priority based on economic impact.

Key project information

  • Country:


  • Financing/Donor:

    World Bank

  • Client/Project Beneficiary:

    The State Committee for refugee and IDP issues of the Republic of Azerbaijan

  • Project Size:

    Small (<$50k)

  • Contractor type:


  • Contract period:

    February 2016 - June 2016

Assignments delivered by Prima

This study prepared by PRIMA covers the proposed methodological aspects of economic cos-benefit analysis, relevant calculations and findings for 36 IDP settlements. Given the limited amount investments, the prioritization of investment (sub-projects) is required. Resources should be allocated to those projects where they bring the largest effect in economic context. With this aim, 2 out of 36 IDP settlements from different economic regions were selected to test a methodology of measuring effectiveness of potential investments into infrastructure. Upon on approval of these pilot reports by the Funder and the Client, CBA per the rest was conducted. Overall, 14 types of potential infrastructure sub-projects were included in the CBA:

  • Irrigation systems
  • Potable Water Supply
  • Sewage system
  • Solid waste system
  • Roads
  • Electricity grid
  • Natural Gas Supply System
  • Telephone network
  • School
  • Kindergarten
  • Hospital
  • Healthcare center
  • Administrative building
  • Cultural center and domestic services

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