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| 10 Undertake economic analysis |
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Cost-benefit analysis
A cost-benefit analysis is used to compare seepage remediation
options and assess the economic viability of the seepage remediation
works in general. An economic profile is established to quantify
the current impacts of seepage and asset management. A post-remediation
profile
is
used to determine a cost-benefit ratio. The comparison of remediation
techniques here assumes they have a similar risk profile with regards
to public health and safety.
Factors to consider in a cost-benefit analysis of remediation options
include:
- Water savings
- Agricultural production benefits (depend on
value of agriculture production and extent of the current
impact)
- Benefits to roads and other infrastructure
- Seepage remediation
costs
- Environmental benefits
- Changes to asset renewal profile
- Operational and maintenance
costs
- Remediation capital costs
- Expected service life.
Cost-benefit analysis tools are explained in Remediation costs,
benefits.
| Affordability |
 |
Despite the outcome of a cost-benefit analysis, the affordability
of a particular technique may influence the choice adopted.
For example, budget restrictions may dictate that a lower-cost
option
is adopted, despite a higher-cost alternative being more cost-effective
in the long run. This may mean that the overall seepage rate
reduction is less than what might have been achieved by a higher-cost
option.
| Related
pages |
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Previous: 9 Decision to pursue seepage remediation
Next: 11 Prioritise techniques |
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