1.3.4
Cost Considerations
Finally from
among the few selected options, the overall
costs (capital and operating) have to be determined
in order to arrive at the most optimum solution.
Capital costs
include all initial costs incurred up to plant
start up, such as:
- - civil construction,
equipment supply and erection costs
- - land purchase costs
including legal fees, if any
- - engineering design
and supervision charges
- - interest charge on
loan during construction period.
- Operating costs after
start up of plant include direct operating
costs and fixed, such as:
- amortisation and interest
charges on capital borrowings
- direct operation and
maintenance costs on
- staff
- chemicals
- fuel and electricity
- transport
- maintenance and repairs
- insurance
- overheads
DESIGN PERIOD
Sewerage projects
may be designed normally to meet the requirements
over a thirty year period after their completion.
The period between design and completion
should also be taken into account which
should be between three to six years depending
on the type and size of the project.
The thirty
year period may however be modified in regard
to certain components of the project depending
on their useful life or the facility for
carrying out extensions when required and
rate of interest, so that expenditure far
ahead of its utilization is avoided. Necessary
land for future expansion/duplication of
components. should be acquired in beginning
itself. Where expensive tunnels and large
aqueducts are involved entailing large capital
outlay for duplication, they may be designed
for ultimate project requirements.
The project
components may be designed to meet the periods
mentioned in Table 1.1
