Service Contract No 2007 / 147-446 - Swaziland

4 . 2 P o w e r S u p p l y a n d C o n s u m p t i o nPower consumptionA basic economic analysis was undertaken to ascertain the trade-off between capital andenergy costs. For this economic analysis the Equivalent Annual Cost method (EAC) wasused. The EAC adjusts the costs of items to a stream of equal amounts of payment overspecified periods (equivalent annual costs) in order to enable comparison.Items costed were:‣ Infield irrigation (tape and fittings including flusher lines and valves - considered aspolythene). Including installation costs.‣ Distribution system - pipelines (main lines and submains - considered as PVC).Including installation costs.‣ Pumping plant (including pump control valves, flow meters, electrical components,motors etc). Included installation costs. Where no new pumps were included, all andany supplementary equipment/operations connected with pumping e.g. upgrades,new impellors, new switchgear, new valves were included‣ Primary filter station (only filters and associated pipework, valves etc).Excluded are:‣ All existing infrastructure (e.g. AC pipe, balancing dam, MCC housing, etc)‣ Buildings (e.g. cluster houses, pump stations, filter station structure)‣ Valves external to pump stations and filter stations.‣ Irrigation controller systems‣ Fertigation systemsThe operational costs for the schemes are confined to energy costs and maintenance(excluded labour. Admin etc).Interest rate: 10%Useful life (this analysis)Infield irrigation (Tape etc):10 yearsPVC/Poly pipe:Filters:Pumping equipment and electricsMaintenanceInfield irrigation: 3%Distribution - pipelines: 2%Pumping plant: 1%20 years15 years15 yearsMaphobeni Farmers Association Report - 2009 Page - 28 -