Existing levee system economic evaluation methodology

Abstract

In France but also in other countries, levee system network are mostly composed of old levees, modified and reinforced during the past. In France, these systems, as road network, are considered as properties and financially as assets. Then the French Centre for Studies and Expertise on Risks, Environment, Mobility, and Urban and Country Planning (CEREMA) and Centre-Val de Loire Regional Direction of Environment Planning and Housing (DREAL) conducted a reflection to build a methodology for an economic evaluation of a levee system. This reflection is inspired by methodology based on asset replacement cost with a potentially depreciation reserve and methodology based on total economic value that takes into account benefits or provided services rendered by this asset. Therefore, the global economic value of a levee system is an average of structural cost balanced out with depreciation or bonus factors. The article details how structural cost is obtained with a levee system segmentation in homogeneous levee sections and unit prices and how depreciation or bonus are evaluated. Finally, this article discuss this methodology and its applicability on Loire levee systems with an example on Orléans levee system.