A reservoir is proposed for a city’s water supply. It has been sized so that wet season flows can be saved to provide water in the dry season. The population of 100,000 and the economic activity in the city are stable – no substantial change is expected for the next 20 years. The per capita water demand was taken to be 300 liters/person/day, and it does not change by the time of year. Based on 30 years of historical river flow data and the projected monthly demand for the next 20 years, it is estimated that a storage equal to 4 months of demand is adequate. a) What is the storage capacity of the reservoir? b) The capital cost of providing the storage is $20/m3, and the annual operating and maintenance cost is 5% of the capital cost. The maximum the residents are willing to pay for the water is $2/m3. What is the projected rate of return on this investment over the 20 years project plan.
A reservoir is proposed for a city’s water supply. It has been sized so that wet season flows can
be saved to provide water in the dry season. The population of 100,000 and the economic
activity in the city are stable – no substantial change is expected for the next 20 years. The per
capita water demand was taken to be 300 liters/person/day, and it does not change by the time
of year. Based on 30 years of historical river flow data and the projected monthly demand for
the next 20 years, it is estimated that a storage equal to 4 months of demand is adequate.
a) What is the storage capacity of the reservoir?
b) The capital cost of providing the storage is $20/m3, and the annual operating and
maintenance cost is 5% of the capital cost. The maximum the residents are willing to pay for
the water is $2/m3. What is the projected rate of return on this investment over the 20
years project plan.
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