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Life Cycle Costing of Water Treatment Plant in the Nashik City

Ambre H P, Saner A B, Aher P. D, Bhoye V. Y.


Life Cycle Costing (LCC) is a valuable technique, which is used for predicting and assessing the cost performance of the assets. This paper has presented the Life Cycle Costing (LCC) of 50 MLD Water Treatment Plant (WTP) located at Nilgiri Bagh, Nashik which was constructed and started operating in July, 2015. The study period for the LCC analysis is taken as 30 years. The main objectives of the paper are: (a) to carry out the LCC of 50 MLD WTP in the Nashik city. (b) To identify the cost drivers in the LCC of the 50 MLD WTP in order to focus on design, development, acquisition or plant support efforts. (c) To identify the effect of three different discount rates on the total life cycle costs. The Net Present Value method is used to carry out the LCC analysis. LCC for three different discount rates that is the highest rate, average rate and lowest rate is calculated in this paper. The calculations are done using the Microsoft Office Excel. The analysis consists of construction costs, operation and maintenance costs, equipment replacement costs, electricity costs and the disposal cost of 50 MLD WTP at Nilgiri Bagh, Nashik. The data for LCC was collected from the Nashik Municipal Corporation, Nashik. The paper concludes that the LCC of 50 MLD WTP varies when discount rates are changed.



Keywords: Life cycle costing, water treatment plants, infrastructure developments, economic and financial analysis, cost drivers

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