Cost optimization for the implementation of «Teberdinsky group water main in Karachaevo-Cherkessiya» investment project

Summary

A financial model for the return of investment funds for the construction of a gravity-pressure water main (100 km long with the elevation difference of 800 m) that has no analogues in world practice is presented. A dynamic method for evaluating an investment project was used that involved the calculation of five indicators: NPV, PI, DPP, IC and ARR. The analysis of the above calculated indicators was carried out on the basis of which conclusions were concretized concerning cost indicators for the development of project documentation, works on the construction and erection of a water main and in-line structures, tariffs, construction time, payback period, performance of payments for water, etc. The advantage of the investment project is that the quick repayment of credit funds is provided from two directions – from the sale of drinking water to the population and from the sale of the electricity generated in the operation of the water main.

Key words

investment project , cost optimization , water main , economic characteristics , repayment of funds