construction and refurbishment of earthen irrigation channel banks

For example, the initial construction costs may be higher as a consequence ofinvestment in reliability and maintainability, but the overall life-cycle cost may belower due to extended life and reduction in operation and maintenance costs.One of the major responsibilities of irrigation enterprises is to get the best possiblevalue for money from its infrastructure investments, and the initial capital cost of achannel is not a reliable indicator of value. Best value means the best outcomewhen all relevant costs over the life of a channel are considered, and to achieve this,the total life cycle costs must be considered, not just the initial costs.Life cycle cost analysis is therefore a valuable tool for improved asset managementdecision making.13.2.4 Applications of life cycle costingLife cycle costing can be used in a range of decision making and evaluationprocesses;• comparing options with different costs and life spans• selecting the option that can deliver the lowest practical life cycle cost• ensuring that the best value for money is obtained• deciding how to best allocate limited resources – time, money and labourFor example, evaluating whether to continue to maintain an existing channel for 15years until its lowest acceptable condition is reached and the replace it, or torehabilitate the channel in 5 years time, and then replace it after a further 20 years.The two options are illustrated in Figure 13-2 and Figure 13-3.AssetConditionReplacementNew ConditionMinimumAcceptable LevelTimeFigure 13-2Maintain existing asset for 15 years, then replaceConstruction and Refurbishment of Earthen Channel Banks August 2002 - Edition 1.0 13-4