Application Study Of Life Cycle Cost Analysis On Industrial Waste Water Treament Engineering Project

With rapid development of industries and economy in China, it becomesmore and more important to protect water resource and abate the pollutions,which is booming the development of industrial waste water treatmentbusiness. Regardless industrial waste water treatment plant for externalservice invested by government or private company, or industrial wastewater treatment unit internally built by company for internal service, it iscommon to have the issue with affordable for build-up but not for operation,so that it is crucial to study the economic evaluation on industrial wastewater treatment engineering.Through literature searching and analysis on life cycle cost (LCC) theoryand its application on different kinds of industrials, it is an approvedtechnique which is also suitable for industrial waste water treatmentengineering. Currently, it is only focused on municipal waste water treatmentplan with LCC application in recent year but not for industrial waste water treatment area, where there is no LCC model established and practice on agiven engineering project.In this paper, based on LCC theory, it is analyzed for the features ofindustrial waste water engineering project, then established with LCC modelwith composition of cost at each phase of life cycle. According to actualsituation of a given industrial waste water treatment project, it is studied oninternal-used industrial waste water treatment unit for development of LCCanalysis model and formula for net present value (NPV). For a givenindustrial water treatment project, it is calculated of total LCC by NPV andconducted cost structure analysis. Some methods are raised for cost controlin project and operation stage. In order to select technical options, withcommon technical compliance, LCC analysis is conducted to compare NPVwith each other, then decision is made for anaerobic treatment which hashigh NPV than aerobic treatment. In addition, risk identification andresponse plan is reviewed to help manage risks through project executionand operation.