FINAL REPORT Evaluation of Seawater Desalination Projects ...

EVALUATION OF SEAWATER DESALINATION PROJECTS
PROPOSED FOR THE MONTEREY PENINSULA
5.1 Coastal Water Project (CWP)
Capital Cost
Capital costs were derived for a 10 mgd RO seawater desalination plant, Desalinated Water
Conveyance System (DWCS), source water and brine disposal facilities, and a 6.3 mgd
injection/ 12.9 mgd extraction (up to 1,300 ac-ft per year) aquifer storage and recovery
(ASR) system. 43 Capital costs were estimated using budgetary quotes from vendors and
suppliers of equipment and material, and estimates of labor requirements were based on crew
requirements and prevailing wages. As shown in Table 3, the estimated capital cost to
implement the proposed project is $178,000,000 (2005 dollars).
The original basis of the estimated capital costs was derived from a report by JR Conkey &
Associates, entitled “Estimate of Probable Construction Costs – California American Water –
Coastal Water Project – Regional Project –2004” (Conkey Report). The Conkey Report was
prepared based upon the Regional Coastal Water Project and provides a detailed accounting
of anticipated labor, equipment, material and subcontractor costs. In turn, the Conkey Report
obtained costs for the MF and RO equipment from a Pridesa define/describe “budget” for the
mechanical equipment. Pridesa is a Spanish water treatment contractor with experience
supplying large-scale desalination facilities in Europe. When the estimate was prepared,
Pridesa was a “sister” company of CAW in that they were owned by the same firm. Pridesa
provided CAW a “preliminary budget” for the mechanical equipment.
As part of the Coastal Water Project Conceptual Design Report (September 16, 2005), the
Conkey Report estimated numbers were refined to reflect the costs associated with the Basic
Coastal Water Project. The Conkey report numbers were also increased to obtain current (at
the time of the report) 2005 dollars. The Pridesa MF and RO mechanical equipment quotes
were reduced by 33 percent to account for the difference in plant capacity, costs were inflated
4 percent to obtain current 2005 values, and $1.5M was added to each process as allowance
for “containment structures.” Implementation costs (engineering, environmental
documentation, permitting, admin., etc.) of 24 percent were added to the Total Construction
Costs. A contingency of 10 percent was applied to the total capital cost.
43 RBF Consulting, California American Water, Coastal Water Project Conceptual Design Report (Draft) -
September 16, 2005.
Monterey Peninsula Water Management District 5-4