ABSTRACT

A conceptual cost estimate is developed during the initial planning/scoping phase of the desalination project and its purpose is to determine an order-of-magnitude value of the project’s capital, operation and maintenance and water production costs. Desalination project conceptual cost estimates are based mainly on a comparative cost analysis of plants with similar fresh water production capacity and source water salinity only, and therefore are very rudimentary. A preliminary cost estimate is typically used for initial site-specific project cost assessment; for evaluation of alternative treatment processes and equipment; and to define baseline for investigations. A budgetary cost estimate is mainly used for authorization of project implementation and for project inclusion into the owner’s fiscal planning and budgeting process. The detailed cost estimate typically includes contingency equal to 5%–10% of the total project capital cost.