Financial and Economic Investment Evaluation of Wastewater Treatment Plant

Abstract

Improved Cost-Benefit Analysis (CBA) analysis requires a broader analytical framework, in order to perceive each project individually from the perspective of potentially measurable and significant effects on the environment and society as a whole. The main goal of our paper is to assess the financial and economic justification for variant V3 (as the most technically optimal) of the wastewater treatment plant (WWTP) construction project in Nov Dojran, North Macedonia, with the purpose of advancing municipal infrastructure and environmental benefits from improved water treatment. Based on the economic analysis conducted, we conclude that the investment in the WWTP project is justified, because the economic internal rate of return is higher than the opportunity cost of capital (EIRR = 16.38%), the economic net present value is higher than 0, and EBCR (benefit-cost ratio) is greater than 1 (EBCR = 2.11). The highest environmental benefit of 49.2% in total environmental benefits is associated with nitrogen, while phosphorus is the next pollutant in the structure of environmental benefits at 46.1%. The environmental benefits of removing biological oxygen demand (BOD) and chemical oxygen demand (COD) are significantly less important, despite the removal of significant amounts of these pollutants during treatment. The situation is similar with suspended particles.

Cosmetic wastewater treatment technologies: a review

“…The concept of sustainable wastewater management has been heavily articulated and should be considered through a multidisciplinary perspective (Ćetković et al 2022 ; Molinos-Senante et al 2010 ), highlighting the need for an economic analysis, as suggested by various researchers.…”

Treatment and reuse of water: Economic Feasibility and assessment of Water Pricing Policies in Ouardanine irrigation district (Tunisia)

“…Environmental benefits are calculated using the shadow price approach developed "to assess internal (which is easy to monetize) but also external economic impacts" (Ćetković et al, 2022;Molinos-Senante et al, 2011 and. The shadow price is the monetary value assigned to an abstract or intangible commodity which, not traded in the market, must be included in an economic evaluation (Sartori et al, 2014).…”

“…The technical solutions for those projects are available and well developed, but they come with a huge financial demand since they are very expensive to implement (Fernandez et al, 2009). In general terms, the costs of the investments are well known but not so much the benefits, particularly in the case of environmental benefits where different approaches prevail (Chen and Wang, 2009;Godfrey et al, 2009;Hernández et al, 2006;Molinos-Senante et al, 2010;Ćetković et al, 2022). Previous research focus on water reuse for environmental purposes (Birol et al, 2010;Chen et Wang, 2009;Kihila et al, 2014;Molinos-Senante et al, 2010;Verlicchi et al, 2012) while economic and financial feasibility evaluations are often missing especially when the reuse in irrigation is the main option.…”

Untitled

“…The technical solutions for those projects are available and well developed, but they come with a huge financial demand since they are very expensive to implement (Fernandez et al, 2009). In general terms, the costs of the investments are well known but not so much the benefits, particularly in the case of environmental benefits where different approaches prevail (Chen and Wang, 2009;Godfrey et al, 2009;Hernández et al, 2006;Molinos-Senante et al, 2010;Ćetković et al, 2022). Previous research focus on water reuse for environmental purposes (Birol et al, 2010;Chen et Wang, 2009;Kihila et al, 2014;Molinos-Senante et al, 2010;Verlicchi et al, 2012) while economic and financial feasibility evaluations are often missing especially when the reuse in irrigation is the main option.…”