Sutjeska (S-3) Hydroelectric Power Plant Annex 8. Investment Estimate.

Annex 8. Investment Estimate

The investment necessary for the construction of a power plant, together with its
production, are a determining factor in the evaluation of the profitability of a
hydroelectric power plant.
This annex seeks to justify the base prices used, as well as the quantification that
was carried out for the different elements that make up the development.
The objective of this study is not to serve as a technical document for construction,
nor is the need to generate detailed measurements or an exhaustive budget
considered at this time. Additionally, it is most probable that the designs included in
this document will be modified during the preparation of the construction project,
with the objective of adapting it to the geological studies that are carried out, to the
detailed topography and to other conditions that may arise.
Therefore, a valuation of the construction is sought without entering into excessive
detail, leaving out the subdivision and unitary parts of the project. That is to say,
this report seeks to obtain a representative valuation of the principal parts of the
project for its posterior analysis and interpretation.

1.

Price Justification

A small database of basic prices has been generated, which were obtained through
a consultation carried out between different suppliers and developers in the
Republic of Srpska between February and May 2005.
To determine the basic prices for the Civil Works, such as excavation in any type of
terrain, cleaning and clearing of terrain,formwork, reinforced concrete, industrial
building, creation of access roads, the prices were taken from local companies,
adopting an average price of the available range.
For another group of items, sufficient information was not obtained for a local offer,
thus current prices in Spain were used to calculate the budget. These items are
rockfill for the reinforcement of the slope, metal stairs, and protective railings,
supplies and installation of piping.
We attach the list of prices for the civil works used in the current valuation:
1. Clearing and cleaning of terrain...........................................................0,25 /m
2. Excavation of all types of terrain........................................................12,00 /m
3. Supplies and installation of rockfill.....................................................47,00 /m

Sutjeska (S-3) Hydroelectric Power Plant Annex 8. Investment Estimate.

4.
5.
6.
7.
8.

2.

Concret including the proportional part of formwork.......................170,00 /m

Reinforcement......................................................................................1,10 /kg
Building.............................................................................................400,00 /m
Construction of access roads.............................................................50,00 /ml
Supplies for carbon steel pipe to helicoidally welded...........................1.20 /kg

Measurement and Valuation

To allow for the application of the justified prices, the measurement of different units
that will be incorporated into the construction has been carried out. To these
measurements, the previously justified unitary prices have been applied, obtaining a
valuation for each of the chapters.
In this document, the descriptions by chapter for the principal units of construction
are presented: intake, piping, surge tank, machine house, access roads, equipment
and electric installation.
Thus, for each chapter the general construction units are described: earth
movement, concrete, brickwork, roads, etc. These parts are listed by described list
price and the measurements of the current project.
This information is presented in the final report.
3.

Generation equipment and electrical installation

The economic valuation of the electro-mechanic elements, of generation and the

rest of the electrical installation are obtained using specific consultations with
European manufacturers with varied experience. The installation costs for this type
of equipment can be considered similar in all of Europe.
The costs appear in the final table.

4.

Engineering, Financial and Terrain Costs

Apart from the strict construction costs, other costs exist that form a part of the total
investment. These correspond to the concept grouped generically bellow the title
Others, which includes the previous geological and geotechnical campaigns,
detailed topographic information and other specific studies that can be necessary.
As well, the engineering work for the preparation of the construction is included,
which is based on the data obtained in previous studies, the technical management
of the administrative processing, the payment of taxes if they were any, the
purchase of terrains, the bidding and contracting of the works and equipment, the
direction and coordination of the works and finally the start up of the installation.

Sutjeska (S-3) Hydroelectric Power Plant Annex 8. Investment Estimate.

Other costs that could be found within the concept of financial, includes the costs
dependent on the type of financing, which include the inserted interested and the
commissions from the opening of credits. These financial costs are presented in the
economic study, but are not considered as a part of the investment, given that a
financial scenario with its own funds will imply the inexistence of these factors.
Thus, we assume that the costs called others, will make up 20% of the total
investment.

5.

Investment necessary.

By summing the different parts, we obtain the investment necessary for the
construction and start-up of the Sutjeska Hydroelectric Power Plant (S-3) will reach
the quantity of 8.537.351,16 euros. A summary of this is presented in the following
table.