r - part - usaid

%.3.1,3. Fuel Casts
Fuel casts in Somalia vary with the source. The casts used
in %his report approximately represent world prices of fuel plus
delivery costs to Somalia. Most of the fuel supplied to the
project was at this cost.
Somalia has its u*m refining capability and receives crude
oil at less than world prices from its neighbours in the Middle
East. The market price oi feel in Somalia is therefore
considerably less than the world price.
In a financial analysis to test the commercial viability of
a groundwater operation, the total cost of well construction,
aperation and maintenance would therefore be less than that
arrived at in this report. The market price of fuel also varies
throughout the country, reflecting the high cost of
transpartation. However, this is taken into consideration in
the report by estimating the actual cost of the delivery of fuel
to the site in each case.
The world price of a liter
at the time of writing is
Mogadishu price is So.Sh.38 per
Setween So.Sh.22 and So.Sh.30.
different costs, again using the
the Bay Region is shown helow.
Market price, MogedisBu,
of So,~h.28 per l iter -
=sing exch. rate 83:L
World price delivered
assumed in report $0.39
Actual world price
delivered Xarch 1986 $0.46
fvered to Somalia
U.S,$0.46. The
liter, and the up-country price
The signif icance of these
cost of well construction in
of diesel del
approxi mate1 y
C5st cf Well Dif ferenc
',lth Diesel Pump from mode
4.3.2. Discounted Well Operation and Haintenance Costs
An investneat in the cor,struction of a well also implies a
cc~aitment to the operation and maintenance costs over the life
cf that well. This can be shcwn as a "stream of costsw over the
years, as in Tables 2.4.11 arid 2.4.12 for diesel equipped and
hand-pcmp equipped wells in the Bay Reoion. The corresponding
costs for the Centr7,l Rznge wells are sh~wn in Tables 2-4-13 and
4 In these tables, the =rod~~ctive life of the well is