r - part - usaid

further analysis has now been completed azd Is presented in this
report, E ~ c ~ uthe s ~ figures developed in this report are, in
some cases, considerably differe~t from those arrived at in the
previous reports, and the aethodolagy used differs, some
co-ents are appropriate here.
The ?ape analysis was ws:* *den at the time when there
existed virtually no CGDP project experience from which ta draw.
It sets out an excellent metkoddogy for the e~ti~atiun of the
casts 02 well constr~ction. The nodel is very detailed, with
sufficient variables to allwd it be used for any pr~p~sed
drilling operation in Somlia, The methodology resulted in an
analysis that ciosely predicted the actual cast of we31
construction (Pape, 1982 F.45).
The Brandon analysis estimated an average direct cost for
basic well construction of 553,E00 {Brandon, 2.984, p.29). This
appears deceptively close to the latest available figure of
$54,030 for Bay rec'on drilling. However, the three analyses
included significane variation in estimztes af the cost of
surface casing, we31 casing, screen and diesel pump. Differing
costs =or screen and casing reflect differing standards
required, Expaxience deternines the appropriate standards for a
pzrticular region. &. ~r.2 variations in the estimates made are as
follows:
Latest figures Erandan ~npe
-------------- *------ ------""--*---
"
steel' P.V. C. Steal Steel P-V-C.
8'' Casing 49 43 7 6 75 18
Bst scweer, 25 57 104 84 37
Surf. casing a5 -- 144 3.44 --
Diesel pan~ $15,225 $20,0i!fJ $13,500
7
'(steel supplied fron NairzSi, transported by road (+16%
Erelqhtf P.V.C. supplied frox C.S.A., transported by container
(i25$ freight), figures in Y.S.5 pez neter including freight
The zest reze~t estixates are shown in sumary form in
Tables 2 . throxgh 2.4.4. Ths Frandon analysis cost of
$53,550 does not include any allowacce for capital equipment
purchase, depreciation, or repairs an-< maintenance. The most
recent estimate of Sf4!CZO qxozad abov~ fcs operatians in the
3ay region includes a re~listic capital replacement charge, and
an annual rspairs and maintecance charge for ail equipment,
based on l3% of the capitzl costs.
The conszruction cost, LtincSud' 7- sunk capital costs3',
arrived zt in the Grandon anzPysis is of the order of $188,000,
{Brandan, 1884, p.43). T ~ E +~~Lysis presented in this report