Cost alocation for multy-purpose water resources system - a case example

Abstract

Main goals of development programs are economic and social progress, thus providing prosperity and wellbeing of the population. The engineering economy is applied for alternatives structuring in case of a water resources system in order to be compared among them and decision to be made for the most favorable alternative. Upon the adoption of optimal alternative for a water resources system it is required cost allocation to be carried out between the particular parties - participants within the multipurpose system. However, there is no specified norm or code for choice of allocation method. The main criteria is to meet the specified objectives. In the paper is given brief overview of cost allocation method and application of the method “separable cost - separable benefits” in case of water resources system Plavaja, Radovis, N. Macedonia.