Hydraulic ram pumps and Sling Pumps

Key Factors for Sustainable Cost Recoveryb) Tariff calculationBasic information on yearly costs:Investment cost = US $3500Functioning cost per year = US $700Approximation of replacement-extension costs = 25% of functioning costs = 25% * 700 = US $200Funds for the recovery of investment costs (RIC) = estimated 10% investment cost = 10% * 3500 =US $350Depreciation25 = Cost (equipment, facilities, construction, buildings) / life cycle = 2000 / 10 = US$200Provision for risk and inflation26 = 15% * depreciation = 15% * 200 = US $35Minimum tariff (covering O&M and basic management costs)Basic Tariff = Functioning costs per month = 700/12 = 67 =0.27 US$ per user / monthNumber of users 250 250Real cost tariff (covering all costs)Real Cost Tariff = Functioning costs + replat & ext. costs + RIC + Depreciation + provision for risk and inflationNumber of users= (700/12) + (200/12) + (350/12) + (200/12) + (35/12) = 0.53 US$ per user / month2502526In this case, the depreciation affects only the main parts of the handpump (construction cost), because the equipment(tools etc.) is replaced every year. The formula for calculating depreciation is therefore simple.Provisions for risk and inflation include an annual rate of 5% for risk and 10% for inflation.53