19.3.9 Specific (Exclusive) Cost
The cost of that portion (or facility) of the project which is built (or functions
exclusively) for exclusive use of a purpose (X), and yet cannot be classified as
comprising part of the shared components of the project. For example, a power plant
that can be separated from the dam. (Specific single-purpose costs). The removal of
that portion (or facility) will not affect the cost burden of or service from any other
purpose of the multipurpose project. Thus, the cost of canal headworks and distribution system is the specific cost for irrigation. The cost of power plant, sub-station,
transmission lines, etc., is the specific cost for power and so on.
The imputed single-purpose costs concerns a component that forms part of the
common works, but serving only one specific purpose in the multipurpose project.
For example, a penstock built into the dam and used for hydropower forms part of
the dam, but is used only for the energy production purpose. The cost of this
component (penstock) can be separated from the project (dam) cost. However, this
would imply a change in the project (dam) cost itself. Such component costs are
obtained by matching the project (dam) cost without penstocks with the project
(dam) cost with penstocks. The difference in the project (dam) cost with penstocks
and the project (dam) cost without penstocks is known as the imputed separable cost
that is attributable to the hydroenergy function. The different designs must be
considered during the planning and design stage i.e. prior to construction, in order
to allow a possible cost estimation. This may require some expense.
19.3.10 Remaining Alternative Cost
This is obtained as the difference between the alternative justifiable cost of each
function and the specific cost.
19.3.11 Separable Cost
The difference between the multi-purpose project cost and the project cost with any
purpose (X) omitted, is known as the separable cost for this project purpose (X). For
example, X may be the water supply or the hydropower or the road component.
Separable costs comprise specific costs together with any other additional project
cost attributable to the inclusion of the given purpose (X).
In calculating separable cost, each purpose/function should be treated as if it were
the last increment of multi-purpose project. This calculation will show the added cost
of increased structure size and any design changes necessary when introducing a
specific purpose/function, such as the cost of increasing the reservoir storage
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19 Cost Allocation for Infrastructure Implementation
The cost of that portion (or facility) of the project which is built (or functions
exclusively) for exclusive use of a purpose (X), and yet cannot be classified as
comprising part of the shared components of the project. For example, a power plant
that can be separated from the dam. (Specific single-purpose costs). The removal of
that portion (or facility) will not affect the cost burden of or service from any other
purpose of the multipurpose project. Thus, the cost of canal headworks and distribution system is the specific cost for irrigation. The cost of power plant, sub-station,
transmission lines, etc., is the specific cost for power and so on.
The imputed single-purpose costs concerns a component that forms part of the
common works, but serving only one specific purpose in the multipurpose project.
For example, a penstock built into the dam and used for hydropower forms part of
the dam, but is used only for the energy production purpose. The cost of this
component (penstock) can be separated from the project (dam) cost. However, this
would imply a change in the project (dam) cost itself. Such component costs are
obtained by matching the project (dam) cost without penstocks with the project
(dam) cost with penstocks. The difference in the project (dam) cost with penstocks
and the project (dam) cost without penstocks is known as the imputed separable cost
that is attributable to the hydroenergy function. The different designs must be
considered during the planning and design stage i.e. prior to construction, in order
to allow a possible cost estimation. This may require some expense.
19.3.10 Remaining Alternative Cost
This is obtained as the difference between the alternative justifiable cost of each
function and the specific cost.
19.3.11 Separable Cost
The difference between the multi-purpose project cost and the project cost with any
purpose (X) omitted, is known as the separable cost for this project purpose (X). For
example, X may be the water supply or the hydropower or the road component.
Separable costs comprise specific costs together with any other additional project
cost attributable to the inclusion of the given purpose (X).
In calculating separable cost, each purpose/function should be treated as if it were
the last increment of multi-purpose project. This calculation will show the added cost
of increased structure size and any design changes necessary when introducing a
specific purpose/function, such as the cost of increasing the reservoir storage
542
19 Cost Allocation for Infrastructure Implementation