AWWA ACE93052

It is not uncommon for two or more water supply agencies to share the use of raw water storage, treatment and/or transmission water supply infrastructure. Reasons for such sharing include history and past political events, the desire to responsibly develop and manage limited water resources available in a region, and the desire to exploit any economies of scale in the provision of infrastructure capacity through shared rather than independent investment. Ideally, any cost sharing agreement ought to be implemented in an environment which recognizes the financial savings which will flow from joint infrastructure capacity provision and should seek to reflect these benefits and to share costs equitably. Unfortunately, when neighboring agencies are at different stages and levels of development and growing at different rates there are two cost equity issues to be addressed, namely: equity in the sharing of the overall costs and equity in the financing of these cost obligations by the separate parties. The aim of this paper is to outline a basis by which equity in cost sharing can be achieved between two or more agencies faced with this development scenario. Application of the proposed basis to an actual cost sharing case study will be described.

Product Details

Published:

01/01/1993

ISBN(s):

0898677114

Number of Pages:

17

File Size:

1 file , 550 KB