Technical Report

0.1 Recommendation
Start with the recommendation to san Miguel represents the impact of six year infrastructure investment
program which includes the construction of new airport and a new container port and oil terminal. (This
case students represents the impacts of a six year infrastructure investment programme on a small
hypothetical Latin American republic. The investment programme includes the construction of a new
airport and a new container port and oil terminal. It is assumed that both of these projects will be
financed by Foreign Direct Investment on a Public Private Partnership basis.)
Recommendation analysis of this technical report
0.2 Impact of construction on Economy
Table 1: output

Analysis :(the above table and include chart)
Table 2: income

Analysis :(the above table and include chart)
Table 3: Employment

Analysis :(the above table and include chart)
Table 4: imports

Analysis :(the above table and include chart)
Note:
1- The analysis should include the political risk financial risk, private finance initiative,
economic development.
2- The analysis of the 4 above tables is the impact in general on the construction sector, but
also we need to include a specific analysis for Airport , sea port ,Road and Railway.
3- This should cover (4.2 Identify the impact of the construction of the project in the
development plan on the economy in terms of increase in output, income, jobs created and imports. This
should be computed using the Input-Output Tables provided.
This should be carried out for each of the five years of the construction works. Make appropriate
assumptions about the spread of the spending over the five years of the development plan.

0.2.1 Construction Development plan in three area
The development plan is based on three areas:
1. Constructing a new International airport. (At the moment there is only a small airstrip near to
San Sebastian that was originally constructed by the plantation owners for their own use and can only
handle light aircraft and small to medium sized jets. A total rebuild would be required to the runways,
terminal buildings and ground dispersal systems in order to meet the government’s criteria. This has
been ruled out because the Government wishes to diversify the economy away from San Sebastian so a site
further north has been selected.)
2. Constructing a new seaport including provision for oil tankers, general bulk carriage, and
container ships. It is also intended to a build passenger terminal and a new marina as part of the same
complex.
3. Upgrading and extending the road and rail network to link the new airport and seaport to the
capital city and also to the mining and agricultural areas. In addition some consideration has been
given to improved links to the mountains for purposes of winter sports and general tourism
0.3 Impact of increased export of oil and minerals
Note: refer to please p(10)
Table 1: output

Analysis :(the above table and include chart)
Table 2: income

Analysis :(the above table and include chart)
Table 3: Employment

Analysis :(the above table and include chart)
Table 4: imports

Analysis :(the above table and include chart)
Analysis the impact of increase oil by 10% and minerals 15 on the rest of the world .The analysis
should include charts
Note: Oil analysis should be separate from mineral analysis .This should cover (4.3 the improved
infrastructure will cut transportation and costs and stimulate exports of oil and minerals. The
increase in oil exports to the Rest of the World (RoW) is expected to be 10% while mineral export to
the Rest of the World (RoW) should increase by around 15%.
The implications on output, income and employment should be calculated using the Input-Output Tables.
Also compute the impact of the above on balance of trade. The exports will be computed directly while
the imports can be obtained using the Input-Output Tables. ).
(For Oil exports, use the cell Y7 in ‘Input Output” as the starting point. Row 7 covers the Oil sector.
Column Y gives exports to the Rest of the World. The appropriate increase should be inserted in cell
B10 of a Blank form sheet.
For mineral exports to the Rest of the World, see the cell Y6 in ‘Input Output”. Row 6 corresponds to
Mining and Column Y again related to exports to Rest of the World. The appropriate increase can be
inserted in cell B9 of the same Blank Form sheet.
The results can be read of as for the case of Construction earlier. This could use the same sheet as
for construction in 2024 with the drop in output for cell B13. This will enable the combined results to
be identified with the drop in construction being (partially?) offset by the increase in oil and
mineral exports.)
0.4 Impact of increased Tourism (p.11)
Table 1: output

Analysis :(the above table and include chart)
Table 2: income

Analysis :(the above table and include chart)
Table 3: Employment

Analysis :(the above table and include chart)
Table 4: imports

Analysis :(the above table and include chart)
Note: Analyze the impact 25% increase in tourism from the row, This should cover (4.4 The implications
of an assumed 25% increase in Tourism from the RoW should be computed. This should cover output,
income, and jobs created. As in the case above, the implications on Balance of Trade should be
estimated. The direct effects on output can be taken as the exports while the imports should be
computed using the Input-Output Tables.)( Following the example on the sheet “Tourism”, the increase in
output should be computed. This could use the same sheet as for Oil and Minerals in 2017 or it could
use a new Blank Form sheet. The changes will have to be aggregated if separate sheets are employed.
One point that the model may be criticised for is that Investment (GDFCF) is assumed to be exogenous.
The primary elements in the investment plan are given. However it is slightly implausible that a 25%
increase in Rest of World tourism could be accomplished by 2024 without investment in new hotels and
restaurants being carried in prior to this in year 2023.
This can be given as a caveat to the results or some allowance could be made for construction in 2023
to cover this.)
0.5 Summary
The results should be summarized over the five years of the development plan (2017-2022) and into the
first two years of operation (2023-2024).
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