engleski

Key Economic Aspects in Valuing Wastewater Systems for Small Rural Areas

In Croatia, construction of wastewater systems (collection, treatment, disposal) is primarily dependent on local and governmental financial capabilities. Initial capital costs are often limiting factor regarding any form of final realization, especially for small rural communities dislocated from large urban areas. Common practice in decision-making process in Croatia is mostly related to incomplete economic analyses. Such analyses are based on rough cost estimates for different alternative technologies and their economic comparisons. Even though professional practice has proposed the multicriteria analysis as appropriate tool in such decision-making processes, in most cases the highest weight is attributed to economic criteria, especially for small rural areas with lower economic potential. Therefore, detailed financial analysis that comprises large scope of relevant parameters is considered as essential tool for reliable overall costs and benefits presentation of any given alternative. This paper analyzes an integrated approach on financial planning regarding valuing different wastewater systems in small rural areas and selection of the best available technology. Key economic aspects are carefully reconsidered within proposed financial planning structure. The structure is primarily concerned on time distribution of all costs (construction as well as operation and maintenance costs) over selected period of time. The basis for comparison of alternatives with different costs streams is described with discounting the future costs and equalizing them with those in the present ("net present value" methodology). The importance of proposed financial planning implementation is shown on a case study for nine rural settlements in eastern part of Croatia.

Wastewater systems; Net present value; Discount rate

U tiskanom obliku je objavljen sažetak rada, a na CD mediju je objavljen cjeloviti rad