Economic Feasibility Analysis Development of Intake and Raw Water Pipelines in Kota Bangun Sub-District, Indonesia. Issue 1 (December 2021)

• Record Type: Journal Article
• Authors: Marsudi, S; Lufira, R D; Sari, S; Riadi, D
• Is Part Of: IOP conference series. Volume 930:Issue 1(2021)
• Publication Date: 2021-12
• Subjects: clean water -- economic feasibility -- water system; Earth sciences -- Periodicals; Environmental sciences -- Congresses; Environmental sciences -- Periodicals; 550.5
• DOI: 10.1088/1755-1315/930/1/012060
• Languages: English
• ISSNs: 1755-1307

Abstract

Abstract: 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.