
Economic Feasibility Analysis Development of Intake and Raw Water Pipelines in Kota Bangun Sub-District, Indonesia
Author(s) -
Suwanto Marsudi,
Rahmah Dara Lufira,
S Sari,
D Riadi
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/930/1/012060
Subject(s) - investment (military) , payback period , economic analysis , population , raw water , business , pipeline transport , environmental science , water resource management , production (economics) , environmental economics , environmental engineering , agricultural economics , economics , environmental health , medicine , politics , political science , law , macroeconomics
Increasing the population in Kota Bangun Sub-District, Kutai Kartanegara Regency, in line with the consequence that growing needs for drinking water and raw water for local communities become a top priority. Public complaints about the increasing difficulty of obtaining clean water seem to be an obstacle that the Regional Government has yet to resolve fully. The production capacity of PDAM Kota Bangun is currently only 30 liters/sec, which is far from sufficient for the needs of all people in the Kota Bangun Sub-District. Economic feasibility calculation analysis utilized the NPV, IRR, and BCR methods and sensitivity analysis to obtain the economic feasibility for the value of developing intake and raw water networks. The results indicate, with a reasonable life condition of 30 years, the construction of water networks in Kota Bangun is still economically feasible. Reasonable with the minimum requirement of BCR = 1, with sensitivity analysis on two scenarios, considerations of 30% and 20% leakage, and 30.55% and 25% administrative costs. The results of the research show that IRR = 17.70%. If the analysis conditions are that investment costs increase by 10% with Fixed Benefits, the payback period is 6.8 years.