Analyzing reimbursement mechanisms for resource development projects

Abstract

A procedure for analyzing reimbursement mechanisms for natural resource development projects is presented and applied to a case study of a proposed water transfer project in Wyoming. The analytic framework presented consists of an impact matrix and a reimbursement matrix. Efficiency, equity, revenue‐raising ability, and administrative feasibility criteria are utilized to assess the reimbursement mechanisms in light of information displayed in the two matrices. Application of the analytic framework to the case study indicates its usefulness to state and regional planners responsible for project financing and reimbursement analyses. By utilizing separate impact and reimbursement matrices the framework described helps to distinguish between impacts of a project on groups within a region and how those groups might share in or be reimbursed for project and related costs. Also in contrast to conventional repayment analyses focusing primarily on user charges the framework permits consideration of a wide range of reimbursement mechanisms.