OVERVIEW OF THE FEASIBILITY STUDY (FS)

OVERVIEW OF THE FEASIBILITY STUDY (FS)

Market Study Technical Study Environmental Study Management and Organization Study Financial Study Socio-economic Study

 Market Study
- Existing Water Supply Situation (present facilities and state of facilities) - Service Area (potential area to be covered based on existing and future development) - Population Projection (total population w/in the potential area, projected served population) - Projected Water Demand (projected demand and demand variation) - Supply and Demand Gap (total projected demand, current and forecast supply)

- Alternative Analysis/Development of Options - Water Resources Development

Spring (dependable yield, protected watershed, area control) wells (deep enough to tap artesian aquifer whenever possible) surface (high treatment costs, water rights conflict)

- Service Area, Service Connections

inventory & evaluation of existing facilities (water supply, sanitation, sewerage, drainage, other utilities) town/city development plan delineation of service area (zoning plan, types of usersresidential, commercial, industrial, institutional)

population & water demand projections

 Technical Study
- Service Area, Service Connections
growth rate (NSO data, socio-economic profile), migration business& industrial development trends willingness-to-connect & willingness-to-pay

Storage, Treatment, Transmission, Distribution, Individual connections

 Technical Study
- Recommended Development Plan/ Implementation Schedule - Preliminary Design - Development Cost - Implementation Schedule

 Environmental Study
- R-O-W (land acquisition, resettlement) - Source Constraints (salt water intrusion, contamination of water source) - Conflicts in Water Uses (irrigation requirements, hydropower, flood control navigation, boundaries of water authority) - Environmental Impact and Mitigating Measures - Environmental Monitoring Plan

 Management (Organizational & Institutional) and Operational Study

- O&M Structure (qualified personnel w/in the LGU to run the system and/or maintain the facility) - Operation Mode (LGU Operated or through Private Sector Participation service contract, management contract, lease/or concession) - Capability Requirements for LGU Personnel operational policies, O&M procedures, management training, skills training - Legal and other statutory requirements

 Financial Study - Resources Needed - Possible sources of funds - Financial Capacity of the LGU - Repayment Schemes - Operating Options - Tariff Design - Flow of funds Statement - Income Statement - Balance Sheet

 Socio-Economic Study
- Economic feasibility is evaluated by calculating whether the value of the resources created by the investment is greater than the value of the resources consumed - Benefits would be in terms of health expenses savings, productive time gained, travel time savings, business multiplier effects, increase in property values, etc. - Economic Indicators (EIRR, NPV, BC Ratio) - Willingness-to-connect and willingness-to-pay survey - Public acceptability of the proposed water rates

END OF PRESENTATION