Question

A 50-mgpd (million gallons per day) water treatment plant was proposed in 2017 for Ureka. A 60- mgpd plant using the same treatment process was built in 2010 in Vancouver for $50,000,000. Given the following additional information and assumptions:

• Poor site condition in Vancouver required an additional $3,000,000 for foundations, which is not anticipated for Ureka.

• Assume the power sizing size exponent = 0.67.

• Assume inflation will persist at an average 5% per annum.

• Assume the location index for Vancouver is 1.17 and 1.20 for Ureka.

• A new high-pressure filter process will be added at Ureka at an additional cost of $4,000,000.

• The construction period for the new plant will include winter construction. The Vancouver plant was not constructed through a winter season. Assume an increase in construction costs for Ureka of 15%.

To make an order of magnitude estimate of the water treatment plant in Ureka, various multiplication factors need to be calculated.

(a) Calculate the multiplication factor based on the different capacities.

(b) Calculate the multiplication factor based on the different location indexes.

(c) Calculate the order of magnitude estimate of the water treatment plant in Ureka.

(d) Calculate the multiplication factor based on effect of inflation.

Answer 1

Multiplication factor based on different capacities 6 multiplication location different - 0.885 factor based on Indexes = 1. 1 - 102 Increase in cost = 15% Cost of wreka plant = (50,000,000 - 3,000,000) x 0.885 - 41, 595,000 Inflation = 51. per annum . cost = 41,595,000 ('t foo)* 41,595,000 (I. os ) - 55,441,278. 1. location faction - 1.02. Ca 1.02 x 5,741,78 1 = 56,856, 103.7.

Adding filter cost = 56,856, 103.7 +40000.co = $60,856, 103.7. winter construction cost = 15% of 60,656, 163 = 9,128, 415.56. multiplication factor based on inflation = (It inflation rate) - (14 8.0536 2 (1.05 = 1.34