MOOC: Auditing the Sustainability of Infrastructure

Exercise 2

Governance Tools and Methods

Answer the questions.

1. Presented below is a cash flow analysis for the renewal of a 94.75-kilometre strip of railway taken from the EU guide on conducting a CBA analysis. Based on this analysis, the CBA concluded that the government would profit from this project. Imagine that you are auditing the CBA and have to decide whether you can give reassurance that your government has made the right decision when undertaking this project. While doing so, you find out that the analysis does not take into consideration the cost of alleviating negative environmental impacts. According to the environmental impact assessment done for the project, the cost of alleviating negative environmental impacts, such as adding noise and vibration barriers, building wildlife overpasses and relocating endangered animals, would add up to 100 million euros. You also realise that land acquisition costs have not been added to the total cost of the project. Your analysis shows that purchasing land for one kilometre of the railway will cost 100 000 euros.

figureChoose the correct statements from the list:

2. Learn by completing this exercise. Take a look at the United Nations Sustainable Development Goals and their targets.

Which of the SDGs should auditors look at in order to find criteria for each audit topic?

2.1. Sustainability of state-developed drinking water and wastewater infrastructure and its impact on achieving environmental goals
2.2. Quality of renovation of the main roads of the state
2.3. National arrangement of mining mineral resources used in construction
2.4. The state’s efforts in ensuring the sustainability of heat supply

 

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