Within the available budget for the year 2016, the Goverment of Brcko Distrikt B&H has funded the preparation of an initial strategic document for development and improvement of agricultural production in the territory of Brčko Distrikt B&H. The Project “Feasibility Study and economic justification for the construction of irrigation system (hydro meliorations) in the Brčko Distrikt B&H” was jointly implemented by the Hydro-Engineering Institute Sarajevo and URBIS Center from Banja Luka. The Study was developed from June 2016 to January 2017.
The main objective of the Study was to create an initial strategic document that will provide basis for future projects aimed at improvement of the agricultural production in the territory of Brčko Distrikt B&H, with sustainable use of water and land resources. The Study defined guidelines for improvement of the agricultural land use as well as for the development of organic and other environmentally sound types of production providing, at the same time, indicators of economic justification for the reconstruction and/or construction of the new hydro-technical melioration systems.
Due to natural characteristics of its land, composed of the highest quality rating categories, climate characteristics and water resources of the Sava River along with its tributaries Tinja and Brka Rivers, Brčko Distrikt has a great potential for the development of agricultural production. Agricutural land makes up most of the territory of BD, approximately 70%, thus indicating agriculture as a branch of economy that needs to be given more importance in the future given the existing prerequisites for its development.
The Study provided the analysis of water resources and ground quality on the one hand, and plans and possibilities for development of the agricultural production on the other. As a result of these analyzes, the most favorable areas for the development of agricultural production were proposed by the project team and adopted in cooperation with the representatives of the Government of Brčko Distrikt, the Department for Agriculture and Water Management. The above said proposed areas are composed of four pilot areas: Vučilovac, Kladje, Omerbegovača and Tinja-Dubrave-Bijela, analysed in detail within the subject Study.
The said pilot areas are characterized by various problems in the context of improving agricultural production. Conceptual design of the irrigation system i.e. drainage system was developed for each of the areas concerned.
The Study has encompassed the following:
- Analysis of the existing situation which was performed for the purpose of identification of the existing state and selection of areas that may be the subject of further investments in upgrading of the existing and construction of the new hydro-technical meliorations;
- Development of Conceptual design for the system of hydro-technical hidromeliorations which comprised:
- Appropriate hydraulic calculations;
- Hydrological, climate and hydro-geological analysis of the subject area, based on the existing data and layers.
- Financial analysis of the feasibility and justification of the project which comprised:
- Assessment of investment costs for the construction of the hydro-melioration systems,
- Projection of the operating costs and maintaining of the system for the observed period of 30 years;
- Identification of the project revenues,
- Projection of the project cash flows,
- Calculation of financial indicators of justification of the project
- Sensitivity analysis with an indication of the effect of variation in key parameters on the financial sustainability of the project.