Financial and Economic Investment Evaluation of Wastewater Treatment Plant

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 financia...

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Bibliographic Details
Published in:Water (Basel) 2022-01, Vol.14 (1), p.122
Main Authors: Ćetković, Jasmina, Knežević, Miloš, Lakić, Slobodan, Žarković, Miloš, Vujadinović, Radoje, Živković, Angelina, Cvijović, Jelena
Format: Article
Language:English
Subjects:
Alternative energy sources
Analysis
Antibiotics
Biochemical oxygen demand
Biogas
Chemical contaminants
Chemical oxygen demand
Climate change
Cost benefit analysis
Cost control
Decision making
Economic analysis
Economic aspects
Economic development
Environmental economics
Environmental effects
Environmental impact
Feasibility studies
Infrastructure (Economics)
Montenegro
Natural resources
North Macedonia
Phosphorus
Pollutant removal
Pollutants
Purification
Sewage
Sustainable development
Wastewater treatment
Wastewater treatment plants
Water pollution
Water treatment
Water treatment plants
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Summary: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.
ISSN:2073-4441
2073-4441
DOI:10.3390/w14010122