Feasibility studies for water reuse projects: an economical approach

Usually the methodologies used to analyse the feasibility of water reuse projects are focused on the internal costs. The aim of this paper is to show a methodology to assess the feasibility of a water reuse project taking into account not just the internal impact, but also the external impact (environmental and social, for example) and the opportunity cost derived from the project. Internal benefit is obtained from the difference between internal income and internal costs. Internal income is obtained by multiplying the selling price of reclaimed water and the volume obtained. Internal costs are made up of the sum of investment costs, operating costs, financial costs and taxes. While some of these factors identified can be calculated directly in terms of money, biophysical and social aspects demand the definition of units of measurement. In order to homogenize results, an annual reference is proposed. A monetary value can be obtained from the calculation of each impact. However, there are a series of externalities for which no explicit market exists. In these cases economic valuation methods are used, based on hypothetical scenarios or patterns observed in related markets.