r - part - usaid

arrives at an equivalent figure rznging from $83,970 for the Bay
region to $131,435 far the Central Range (Table 2.4.4). This
major eifference relates to the treatment of capital costs, and
deserves some explanation.
e Brandon arialysis attempted to forecast the cost of
continuing the Comprehensive Groundwater Development Project
through to the end of the expected life of the most expensive
equipment, the drilling rigs- Wherever possible, the cost of
expatriates was excluded. Hawever, the analysis was unable to
separate out the overhead capital costs associated with the
element of training and supemision built into the project by
the inclusion of expatriates. As an example, it is now felt
that maintaining an inventory af 40 light vehicles, ox even 32,
to support the operation of four drilling rigs would be somewhat
excessive (Brandun,1984, p-13). Less vehicles are able to
service a larger number of active drilling teams.
In the light of experience, the projected life of many of
the vehicles appears to have been a rather conservative
estimate, certainky for uper~tions in the Bay Region.
Estimating the life of vehicles in Somalia can be a difficult
exercise. On the one hand, the terrain, eopecialfy far those
vehicles operating in the Central Range, is very rough, and the
standard of driving and the level of naintena~ce is not of an
optimum level. On the other hand, fazed w ith the difficulty of
acquiring spare parts, Somali ingenuity keeps a large number of
vehicles operating far longer khan mfghr be expected.
W i t h the establishment of t5e Planning Unit, and the
introduction of micro-computers, it was decided to create a new
costing model. At the same time, it became increasingly obvious
that USAID did not propose to coztinue funding the Groundwater
project in its existing form beyond the current extension
period. In order to retain the benefits of continuity by
keeping t'the projectw operati~g as a unit, WDA proposed that the
facilities be ~ sed far an exploratory drilling program to cover
the whole of Somalia. With this in mind, zhe ccsting model was
designed to serve the brcader costing needs of WDA as well as
being able to focus on the operations of the Groundwater
project .
Construction
The well construction mdel consists of 26 tables, an6 is
reproduced in fall in this report in sno versions. Appendix
4.4.1 represents the cost of a prsduction drilling program in
the Bay region, Appendix 4 - 4 2 represents the cost of an
exploratory drilling program in the central aangelands. The
difference I s in the primary objective of the program: the Bay
Region production drilling prograa inccrporates some aspect of