COLLAGE OF BUSINESS & ECONOMICS

                             DEPARTMENT OF ECONOMICS
              PROGRAM :ENERGY ECONOMICS
Risk and Hazard Management in Energy Sector
Development Planning for Natural Hazard Management

ASSGNEMENT

BY:  TAGESSE BEYKASO … ID No sgs /040/10

SUBMITED TO: Dr.DHAMODARAN. L

JUNE;2018

HARAMAYA UNIVERSITY, HARAMAYA

        

TABLE OF CONTENTS PAGE NO.

TABLE OF CONTENT...............................................................................................................................II

1. INTRODUCTION...................................................................................................................................1

1. Development Planning for Natural Hazard Management........................................................................1

1.1. Natural hazard assessment................................................................................................................1

1.2. Vulnerability assessment..................................................................................................................1

1.3. Risk assessment................................................................................................................................1

1.4. Advantages of integrated development planning for hazard management........................................2

1.5. Hazard Management Activities.........................................................................................................3

1.5.1. Pre-event Measures:...................................................................................................................3

1.5.2. Measures During and Immediately After Natural Disasters:......................................................3

1.5.3. Natural Hazard Assessments;.....................................................................................................4

1.6. Hazard mitigation strategies for project formulation........................................................................5

2. Plan of Action for Disaster Risk Reduction and Management in Agriculture..........................................6

II
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1. INTRODUCTION

1. Development Planning for Natural Hazard Management

Natural hazard management is often conducted independently of integrated development
planning. It is important to combine the two processes. Of the many components of hazard
management, the following techniques are the most compatible with the planning process:

1.1. Natural hazard assessment: an evaluation of the location, severity, and probable
occurrence of a hazardous event in a given time period.

1.2. Vulnerability assessment: an estimate of the degree of loss or damage that could result
from a hazardous event of given severity, including damage to structures, personal injuries, and
interruption of economic activities and the normal functions of settlements. –

1.3. Risk assessment: an estimate of the probability of expected loss for a given hazardous
event. Integrated development planning is a multidisciplinary, multi sectoral process that
includes the establishment of development policies and strategies, the identification of
investment project ideas, the preparation of projects, and final project approval, financing, and
implementation. The OAS/DRDE version of this project cycle consists of four stages:
Preliminary Mission, Phase I (development diagnosis), Phase II (project formulation and
preparation of an action plan), and Project Implementation. The development planning and
hazard management activities in each of these stages are summarized .

The advantages of incorporating hazard management into development planning include the
following:

- Vulnerability reduction measures are more likely to be implemented as part of development

projects than as stand-alone mitigation proposals.

- The cost of vulnerability reduction is less when the measure is a feature of the original project
formulation than when it is incorporated later.

- The planning community can help set the science and engineering research agenda to focus
more on the generation of data suitable for immediate use in hazard mitigation.

- Building vulnerability reduction into development projects benefits the poorest segments of the
population
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1.4. Advantages of integrated development planning for hazard management

Even though integrated development planning and hazard management are usually treated in
Latin America and the Caribbean as parallel processes that intermix little with each other, it is
clear that they should be able to operate more effectively in coordination, since their goals are
the same-the protection of investment and improved human well-being-and they deal with
similar units of space. Some of the advantages of such coordination are the following:

- There is a greater possibility that vulnerability reduction measures will be implemented if they
are a part of development package. The possibility increases if they are part of specific
development projects rather than stand-alone disaster mitigation proposals. Furthermore,
including vulnerability reduction components in a development project can improve the cost-
benefit of the overall project if risk considerations are included in the evaluation. A dramatic
example is the case study on vulnerability reduction for the energy sector in Costa Rica.

- Joint activities will result in a more efficient generation and use of data. For example,
geographic information systems created for hazard management purposes can serve more general
planning needs.

- The cost of vulnerability reduction is less when it is a feature of the original project formulation
than when it is incorporated later as a modification of the project or an "add-on" in response to a
"hazard impact analysis." It is even more costly when it is treated as a separate "hazard project,"
independent of the original development project, because of the duplication in personnel,
information, and equipment.

– Exchanging information between planning and emergency preparedness agencies strengthens

the work of the former and alerts the latter to elements whose vulnerability will not be reduced
by the proposed development activities. In the Jamaica study of the vulnerability of the tourism
sector to natural hazards, for example, solutions were proposed for most of the problems
identified, but no economically viable solutions were found for others. The industry and the
national emergency preparedness agency were so warned.

- With its comprehensive view of data needs and availability, the planning community can help
set the research agenda of the science and engineering community. For example, when a
planning team determines that a volcano with short-term periodicity located close to a population
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center is not being monitored, it can recommend a change in the priorities of the agency
responsible.

- Incorporating vulnerability reduction into development projects builds in resiliency for the
segment of the population least able to demand vulnerability reduction as an independent
activity. A clear example of this situation was the landslide mitigation components of the
metropolitan Tegucigalpa study: the principal beneficiaries were the thousands of the city's poor
living in the most hazard-prone areas. For purposes of this discussion, development planning is
considered the process by which governments produce plans-consisting of policies, projects, and
supporting actions-to guide economic, social, and spatial development over a period of time. The
hazard management process consists of a number of activities designed to reduce loss of life and
destruction of property. Natural hazard management has often been conducted independently of
development planning. A distinctive feature of OAS technical assistance is the integration of the
two processes.

1.5. Hazard Management Activities

The natural hazard management process can be divided into pre-event measures, actions during
and immediately following an event, and post-disaster measures. In approximate chronological
order these are as follows:

1.5.1. Pre-event Measures: a. Mitigation of Natural Hazards: - Data Collection and Analysis -
Vulnerability Reduction b. Preparation for Natural Disasters - Prediction - Emergency
Preparedness (including monitoring, alert, evacuation) - Education and Training

1.5.2. Measures During and Immediately After Natural Disasters
a. Rescue
b. Relief                                             
3. Post disaster Measures:
a. Rehabilitation
b. Reconstruction

a. Disaster Mitigation An accurate and timely prediction of a hazardous event can save human
lives but does little to reduce economic losses or social disruption; that can only be accomplished
by measures taken longer in advance. Included in the concept of disaster mitigation is the basic
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assumption that the impact of disasters can be avoided or reduced when they have been
anticipated during development planning. Mitigation of disasters usually entails reducing the
vulnerability of the elements at risk, modifying the hazard-proneness of the site, or changing its
function. Mitigation measures can have Ecuador and the northern area of Peru are often affected
by severe floods caused by "El Niño" or the El a structural character, such as the inclusion of
specific safety or vulnerability reduction measures in the design and construction of new
facilities, the retrofitting of existing facilities, or the building of protective devices. Non-
structural mitigation measures typically concentrate on limiting land uses, use of tax incentives
and eminent domain, and risk underwriting through insurance programs. Many countries are
making efforts to introduce mitigation measures in hazard-prone areas. For example, the coastal
area of Niño Southern Oscillation (ENSO) phenomenon, which recurs approximately every 3 to
16 years. Between November 1982 and June 1983, heavy rains created the most dramatic series
of floods reported this century, affecting 12,000 square kilometers in this region, with total losses
estimated at US$1,200 million. Subsequently, Peru transferred six of the most affected villages
to higher elevations (a non-structural mitigation measure), and introduced special adobe-building
techniques to strengthen new constructions against earthquakes and floods (a structural
mitigation measure). Disaster mitigation also includes the data collection and analysis required to
identify and evaluate appropriate measures and include them in development planning. The data
collection involves essentially three kinds of studies:

1.5.3. Natural Hazard Assessments; Studies that assess hazards provide information on the
probable location and severity of dangerous natural phenomena and the likelihood of their
occurring within a specific time period in a given area. These studies rely heavily on available
scientific information, including geologic, geomorphic, and soil maps; climate and hydrological
data; and topographic maps, aerial photographs, and satellite imagery. Historical information,
both written reports and oral accounts from long-term residents, also helps characterize potential
hazardous events. Ideally, a natural hazard assessment promotes an awareness of the issue in a
developing region, evaluates the threat of natural hazards, identifies the additional information
needed for a definitive evaluations, and recommends appropriate means of obtaining it.

1.6. Hazard mitigation strategies for project formulation

   1. Incorporating mitigation measures into investment projects  
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2. Methods for evaluating natural hazard risk

Building natural hazard mitigation measures into investment projects consumes financial and
technical resources. Therefore, hazard assessments should include an estimate of the damage the
project might suffer over its lifetime and a method for estimating the costs and benefits of
mitigation measures. Having this information, the planner can compare the costs of mitigation
with the losses that might be incurred if hazards are not taken into account.

With the right information it is theoretically possible to achieve an optimum level of risk
management, balancing the cost of mitigation against the value of the elements at risk and the
probability of a hazardous event. But to reach such an ideal state, changes in the current
institutional environment are needed: - Governments and development assistance agencies must
have access to information on natural hazards.

- National and regional planning institutions and sectoral agencies must undertake the necessary
natural hazard assessments and formulate policies for non-structural mitigation.

- These policies, in turn, must become a part of the process of identification and preparation of
investment projects. 

Donors or lenders must undertake their own review of individual investments from the natural

hazard perspective.

- There must be a strong private insurance sector to optimize risk management and efficiency
and spread the costs of unavoidable risks across the entire society. The priority that governments
afford natural hazard mitigation is not very high, judging by the increasing losses to major
investment projects from storms, earthquakes, floods, and landslides that could have been greatly
reduced. There are a number of explanations for this:

- Governments believe that the risk is limited and that the potential savings from mitigation are
low. - Political and financial pressures make it unappealing to take expensive steps now to avoid
losses in the future. Hazard mitigation strategies for project formulation http://www.oas.org/
usde/publications/Unit/oea54e/ch10.htm (1 of 10) [4/4/2000 3:22:53 PM]

- If losses occur, international agencies frequently provide assistance.

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- People are resigned: after repeated events, they tend to accept the inevitability of natural
hazards, and they lack knowledge about non-structural mitigation.

- The burden of analysis, institution-building, and implementation discourages the effort. - The
political, financial, and social costs of hazard assessment and mitigation may not always be less
than the benefits.

- There are some methodological problems in cost-benefit analysis, including the fact that not all
costs or benefits related to disasters are quantifiable.

- The costs fall on public institutions that cannot recapture directly the benefit of preventing
losses in the future.

For similar reasons international development assistance agencies sometimes neglect natural
hazards that may affect projects for which they have provided funds or assistance.

2. Plan of Action for Disaster Risk Reduction and Management in Agriculture

The Plan of Action for DRRM in Agriculture was developed at the request of the Government of
Lao PDR through a process of consultation and engagement led by MAF, with technical and
facilitation support provided by FAO. A Technical Support Team (TST) was established to
support the creation of the plan, composed of experts from several departments within MAF,
together with NAFRI, the NDMO of the MLSW and the DDMCC and DMH of MoNRE. The
plan was designed to guide the implementation of a proactive approach to DRRM within the
agricultural sector over a period of three years (2014–2016) to contribute to the achievement of
the following long-term vision for DRRM in agriculture: Prevent and reduce the impacts from
natural disasters and climate change on farming communities and the agricultural sectors, and
contribute to enhanced resilience of livelihoods for sustainable and fair food and nutrition
security in Lao PDR.

The Plan of Action is a tool for translating the vision of DRRM in agriculture into doable
actions, and thus contributes to ensuring that sustainable, food secure and climate-proofed
DRRM interventions contribute to the resilience of farming communities and the agricultural
sectors in Lao PDR. It builds on existing institutional mechanisms and mandates to
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systematically address the impacts of natural and biological disasters (including climate change)
on agriculture, livestock, fisheries/aquaculture and forestry. It will catalyses links between
DRRM, CCA and sustainable NRM, and reinforce agricultural development with a strong
institutional basis for implementation.

While capacity development under this plan targets both the Government and farmers, the main
target groups to be supported through its implementation will be mainly farmers and vulnerable
groups dependent on agricultural production, with special consideration given to women, youth
and communities that are regularly affected by multiple hazards (particularly floods, droughts,
storms) and related risks such as landslides) or cascading risks.