A Life Cycle Costs (LCC) Assessment of Sustainable Urban Drainage System Facilities
A Life Cycle Costs (LCC) Assessment of Sustainable Urban Drainage System Facilities
A Life Cycle Costs (LCC) Assessment of Sustainable Urban Drainage System Facilities
1st International Conference on Managing Rivers in the 21st Century: Issues & Challenges
AMINUDDIN AB. GHANI, Associate Professor, Deputy Director, River Engineering and
Urban Drainage Research Centre (REDAC), Universiti Sains Malaysia, Engineering
Campus, 14300 Nibong Tebal, Penang, Malaysia
NOR AZAZI ZAKARIA, Associate Professor, Director, REDAC, Universiti Sains Malaysia,
Engineering Campus, 14300 Nibong Tebal, Penang, Malaysia
MOHD NOR DESA, Director, Humid Tropics Centre (HTC), Kuala Lumpur
ABSTRACTS
Stormwater management practice has evolved from simple removal of runoff using traditional
storm drainage and “end of pipe” approaches to comprehensive management approaches
employing control measures which are more sustainable ecological solutions. In response to
the needs for paradigm shift the way the stormwater is managed, the Malaysian Government
has introduced a new approach of planning and design of urban areas through the New
Stormwater Management Manual for Malaysia (MSMA) that offers a sustainable solution for
integrating the land development and urban water cycle. Bio-Ecological Drainage System
(BIOECODS) is an example of an innovative sustainable urban drainage system suggested in
MSMA that designed to restore the natural environment. The BIOECODS combines three
engineering techniques to manage stormwater based on “Control-at-Source” approach
namely infiltration, storage, conveyance and treatment by integrating the drainage
components (i.e. ecological swales, on-line sub-surface detentions, and dry ponds) with the
ecological pond components (i.e. detention pond, constructed wetland, wading stream and
recreational pond). In combination, this increase runoff lags time, increase opportunities for
pollutant removal through settling and bio-filtration, and reduce the rate and volume of runoff
through enhanced infiltration opportunities.
However, perception of increased cost is known as barrier to the wider acceptance of the
new concept of sustainable drainage systems in Malaysia. Many developers and contractors
were sceptical to the successful of the system especially when dealing with construction and
maintenance costs. Therefore, the challenge is to develop a clear life - cycle costing of
MSMA and traditional drainage systems which has been identified as one key of
sustainability challenges for urban drainage. Life - cycle cost analysis (LCC) is an economic
evaluation technique to evaluate the sustainability of the drainage systems. This technique is
well suited to compare alternative designs, with differing cost expenditures over the project
life. This must take into account the full range of benefits, downstream implications and
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DRAINAGE MODULE
PRODUCTION
CONSTRUCTION
OPERATION
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DRAINAGE MODULE
PRODUCTION
CONSTRUCTION
OPERATION
The term production as shown in Figure 2 conveyance system was built. This also
and 3 in BIOECODS and open drain included the transport of open concrete
systems were defined as the phase where drain and BIOECODS drainage materials.
all raw material production and all Construction of concrete open drainage
industrial production of system involved work such as open concrete drain
components took place. The raw materials installation, mixing and placing concrete,
may be produced for BIOECODS with open drain bedding and jointing.
either recycled polypropylene. Meanwhile, Meanwhile, the construction work of
the open drain system normally used BIOECODS involved excavation, leveling,
concrete and cement as raw materials. sand bedding, module laying, sand
The term construction shown in Figure installation, back filling, slope trimming,
1 to 3 comprised all activities performed at top soil application and close turfing. The
the site where the conveyance system was estimation of the construction costs must
built. This is usually the major first cost also consider a number of local issues.
incurred to build the facility. All costs to These include the design flow rate, size
construct the facility are included: design, and configuration of the stormwater
construction, contract administration, facilities (with regard to site constraints),
inspection, supervision, and any other hydraulic impedance and the requirements
costs associated with the construction for operation, and safety and other
process. This also included the transport of construction issues. If any of this factors
open drain and building materials. can not be adequately satisfied by a
Construction of BIOECODS is not too particular stormwater facilities it should be
complicated as compared to concrete deemed as potentially inappropriate for
drainage system which needs particular that location.
processes such as mixing and placing Meanwhile, all the work with
concrete, all this work has to do properly maintaining the function of the system was
otherwise concrete drainage will be defined as operation and maintenance
collapsed or failed. However, BIOECODS (O&M) shown in Figure 1 to 3. The term
did not require such processes in the of operation and maintenance are also
construction work but the specification and contained necessary inspections,
design must be followed strictly. measurements and management of
The term construction comprised all sediments. Used open drains could either
activities performed at the site where the be left on the ground or the material in the
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single sum that is the annual equivalent schedule. The assumed interest rate is
cost or the present value of all costs over entered into the appropriate box. The
the life of the development. The annual operation, maintenance and
methodology used in life cycle analysis overhead costs are increased by a
incorporates basic discounting and percentage after a number of years to
financial appraisal techniques. The value account for inflation (For example, 3%
of life cycle costing looks at the balance increase in every 10 years).
between initial and future expenditures by
using a series of economic analysis. The
future value of RM1 annual payments for 5 Discussions
n years at the compound interest rate of i
equals (1 + i) n. Similarly, the present The life cycle costs are estimated for
economic value due to a series of regular various interest rates and results are
annual future payments of RM 1 at summarized in Table 5 and plotted in
discount rates of i equals 1/(1+i) n. Figure 5 to examine the variation in life
cycle costs with interest rates. At smaller
interest rate, the life cycle cost of MSMA
4 Methodology for Life Cycle Cost method is higher than the conventional
(LCC) Analysis of BIOECODS method. The most important finding is that
Method the point where two curves intersect at
15% interest rates as shown in Figure 5
A simple spreadsheet has been developed indicates the interest rate at which life
to conduct life cycle cost analysis of cycle costs for the two methods are the
BIOECODS and traditional methods. The same whether the systems are conventional
procedure for the life cycle cost analysis is or MSMA method. The results show that
based on the Flow Chart shown in Figure the life cycle cost will be the same for both
4. There are two schedules for each methods before life cycle reached 25
method: estimation of capital/construction years.
cost and estimation of life cycle cost as The costs of the stormwater
shown in Tables 1- 4. From designs, the management scheme at USM Engineering
quantity of various items e.g. ecological Campus for conventional and MSMA
swales, concrete drainage are estimated method is shown in Table 1 and 2. The
and entered into the schedule of tabulated costs include drainage works, as
capital/construction cost estimates (Table this is component that differed with the
1 or Table 2). The rates for various items implementation of the BIOECODS.
are obtained from local authorities and/or Comparison of costs between
civil contractors and entered into the implementing a BIOECODS stormwater
schedule. The total capital/construction management scheme and a conventionally
cost is obtained as the sum of all the costs designed stormwater drainage system
in the last row of the schedule. shows only a minor decrease of 5% to the
To compute the life cycle cost, the cost of the drainage component of the
capital/construction cost obtained in Table development. Considering the drainage
1 or Table 2 is copied into the column of works component represents only 10% of
capital/construction cost in the schedule the overall cost, the incorporation of
for life cycle cost analysis in Table 3 or BIOECODS into stormwater management
Table 4. The operation and maintenance system at the USM Engineering Campus
costs are estimated and entered into the decreased the total budget by 0.5%.
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Hydronet
for all type(A,B,and C) sq.m. 7,391 7.50 55,432.50
Sand bedding
for all type(A,B,and C) sq.m. 2,070 4.00 8,280.00
Drainage Module
a) type A lin.m. 1,161 264.00 306,504.00
b) type B lin.m. 1,150 530.00 609,500.00
c) type C lin.m. 350 800.00 280,000.00
Sand filling
for all type(A,B,and C) cu.m. 1,801 30.00 54,030.00
Turfing
a) close turfing (type A, B and C) sq. m. 8,623 3.50 30,180.50
b) hydroseeding (type A,B and C) sq. m 4,945 3.15 15,576.75
Detention Storage
a) type A No. 103 2,957 304,571.00
b) type B No. 149 1,739 259,111.00
Ecological Pond
a) Wetpond 368,425.00
b) Detention Pond 201,431.00
c) Wetland 339,170.00
d) Wading River 162,010.00
e) Recreational Pond 129,670.00
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Drainage works
Monsoon drain
a) precast concrete u-shape lin.m. 623 400.00 249,200.00
b) ditto size 1200mm x 1200mm lin.m. 1,245 500.00 622,500.00
ditto size 1500mm x 1500mm lin.m. 2,075 600.00 1,245,000.00
Sump
a) bricks sump to P.C 1 No. 1,247 300.00 374,100.00
b) ditto-bricks sump to P.C 2&3 No. 70 800.00 56,000.00
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Table33Schedule
Table Scheduletotoestimate
estimatelife
lifecycle
cyclecost
cost for
forconventional
conventionalmethod.
method
COST Operation
Capital Annual Maintenance Total Discount PV of RM 1 Present
Year (RM) (RM) (RM) (RM) Rate TOTAL ( 2% interest) Value
0 7,248,242 --- --- 7,248,242 0 7,248,242 1 7,248,242
1 12,000 57,600 69,600 6,960 76,560 0.98 75,059
2 12,000 57,600 69,600 6,960 76,560 0.96 73,587
3 12,000 57,600 69,600 6,960 76,560 0.94 72,144
4 12,000 84,000 96,000 9,600 105,600 0.92 97,558
5 12,000 57,600 69,600 6,960 76,560 0.91 69,343
6 12,000 57,600 69,600 6,960 76,560 0.89 67,983
7 12,000 57,600 69,600 6,960 76,560 0.87 66,650
8 12,000 84,000 96,000 9,600 105,600 0.85 90,129
9 12,000 57,600 69,600 6,960 76,560 0.84 64,062
10 12,000 57,600 69,600 6,960 76,560 0.82 62,806
11 13,200 63,360 76,560 7,656 84,216 0.80 67,732
12 13,200 91,872 105,072 10,507 115,579 0.79 91,133
13 13,200 63,360 76,560 7,656 84,216 0.77 65,102
14 13,200 63,360 76,560 7,656 84,216 0.76 63,825
15 13,200 63,360 76,560 7,656 84,216 0.74 62,574
16 13,200 91,872 105,072 10,507 115,579 0.73 84,193
17 13,200 63,360 76,560 7,656 84,216 0.71 60,144
18 13,200 63,360 76,560 7,656 84,216 0.70 58,965
19 13,200 63,360 76,560 7,656 84,216 0.69 57,808
20 13,200 91,872 105,072 10,507 115,579 0.67 77,781
21 14,520 69,696 84,216 8,422 92,638 0.66 61,120
22 14,520 69,696 84,216 8,422 92,638 0.65 59,922
23 14,520 69,696 84,216 8,422 92,638 0.63 58,747
24 14,520 101,088 115,608 11,561 127,169 0.62 79,064
25 14,520 962,496 977,016 97,702 1,074,718 0.61 655,074
26 14,520 69,696 84,216 8,422 92,638 0.60 55,358
27 14,520 69,696 84,216 8,422 92,638 0.59 54,273
28 14,520 101,088 115,608 11,561 127,169 0.57 73,043
29 14,520 69,696 84,216 8,422 92,638 0.56 52,165
30 14,520 69,696 84,216 8,422 92,638 0.55 51,143
31 15,980 76,666 92,646 9,265 101,910 0.54 55,158
32 15,980 101,059 117,039 11,704 128,743 0.53 68,315
33 15,980 76,666 92,646 9,265 101,910 0.52 53,017
34 15,980 76,666 92,646 9,265 101,910 0.51 51,977
35 15,980 76,666 92,646 9,265 101,910 0.50 50,958
36 15,980 101,059 117,039 11,704 128,743 0.49 63,113
37 15,980 76,666 92,646 9,265 101,910 0.48 48,979
38 15,980 76,666 92,646 9,265 101,910 0.47 48,019
39 15,980 76,666 92,646 9,265 101,910 0.46 47,077
40 15,980 101,059 117,039 11,704 128,743 0.45 58,307
41 17,560 84,326 101,886 10,189 112,075 0.44 49,762
42 17,560 84,326 101,886 10,189 112,075 0.44 48,787
43 17,560 84,326 101,886 10,189 112,075 0.43 47,830
44 17,560 111,168 128,728 12,873 141,601 0.42 59,246
45 17,560 84,326 101,886 10,189 112,075 0.41 45,973
46 17,560 84,326 101,886 10,189 112,075 0.40 45,071
47 17,560 84,326 101,886 10,189 112,075 0.39 44,188
48 17,560 111,168 128,728 12,873 141,601 0.39 54,734
49 17,560 84,326 101,886 10,189 112,075 0.38 42,472
50 17,560 1,066,406 1,083,966 108,397 1,192,363 0.37 442,996
Total Net Present Value 11,302,706
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Table 4 Schedule to estimate life cycle cost for MSMA method
Table 4 Schedule to estimate life cycle cost for MSMA method.
COST Operation PV of RM
Capital Annual M aintenan Total Discount 1 (2% )
Year (RM ) (RM ) ce (RM ) (RM ) Rate TOTAL interest Present Value
0 6,977,278 --- --- 6,977,278 0 6,977,278 1 6,977,278
1 13,000 92,000 105,000 10,500 115,500 0.98 113235
2 13,000 135,100 148,100 14,810 162,910 0.96 156584
3 13,000 190,000 203,000 20,300 223,300 0.94 210421
4 13,000 230,000 243,000 24,300 267,300 0.92 246944
5 13,000 260,000 273,000 27,300 300,300 0.91 271991
6 13,000 295,000 308,000 30,800 338,800 0.89 300845
7 13,000 100,000 113,000 11,300 124,300 0.87 108211
8 13,000 100,000 113,000 11,300 124,300 0.85 106089
9 13,000 100,000 113,000 11,300 124,300 0.84 104009
10 13,000 100,000 113,000 11,300 124,300 0.82 101969
11 14,233 150,000 164,233 16,423 180,656 0.80 145295
12 14,233 100,000 114,233 11,423 125,656 0.79 99079
13 14,233 100,000 114,233 11,423 125,656 0.77 97136
14 14,233 100,000 114,233 11,423 125,656 0.76 95232
15 14,233 100,000 114,233 11,423 125,656 0.74 93364
16 14,233 132,000 146,233 14,623 160,856 0.73 117175
17 14,233 100,000 114,233 11,423 125,656 0.71 89739
18 14,233 100,000 114,233 11,423 125,656 0.70 87979
19 14,233 100,000 114,233 11,423 125,656 0.69 86254
20 14,233 132,000 146,233 14,623 160,856 0.67 108252
21 15,655 100,000 115,655 11,566 127,221 0.66 83937
22 15,655 100,000 115,655 11,566 127,221 0.65 82291
23 15,655 100,000 115,655 11,566 127,221 0.63 80678
24 15,655 145,200 160,855 16,086 176,941 0.62 110008
25 15,655 690,000 705,655 70,566 776,221 0.61 473130
26 15,655 110,000 125,655 12,566 138,221 0.60 82598
27 15,655 110,000 125,655 12,566 138,221 0.59 80978
28 15,655 145,200 160,855 16,086 176,941 0.57 101630
29 15,655 115,000 130,655 13,066 143,721 0.56 80931
30 15,655 115,000 130,655 13,066 143,721 0.55 79344
31 17,220 115,000 132,220 13,222 145,442 0.54 78720
32 17,220 150,000 167,220 16,722 183,942 0.53 97606
33 17,220 120,000 137,220 13,722 150,942 0.52 78524
34 17,220 120,000 137,220 13,722 150,942 0.51 76985
35 17,220 120,000 137,220 13,722 150,942 0.50 75475
36 17,220 159,700 176,920 17,692 194,612 0.49 95403
37 17,220 120,000 137,220 13,722 150,942 0.48 72544
38 17,220 120,000 137,220 13,722 150,942 0.47 71122
39 17,220 120,000 137,220 13,722 150,942 0.46 69727
40 17,220 159,700 176,920 17,692 194,612 0.45 88138
41 18,943 125,500 144,443 14,444 158,887 0.44 70548
42 18,943 125,500 144,443 14,444 158,887 0.44 69164
43 18,943 125,500 144,443 14,444 158,887 0.43 67808
44 18,943 175,650 194,593 19,459 214,052 0.42 89560
45 18,943 125,000 143,943 14,394 158,337 0.41 64949
46 18,943 125,000 143,943 14,394 158,337 0.40 63676
47 18,943 125,000 143,943 14,394 158,337 0.39 62427
48 18,943 175,650 194,593 19,459 214,052 0.39 82739
49 18,943 130,000 148,943 14,894 163,837 0.38 62088
50 18,943 1,013,550 1,032,493 103,249 1,135,742 0.37 421960
Total Net Present Value 12 ,831,770
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Maintenance
16,000,000
"Traditional
14,000,000 Method"
Life Cycle Costs (RM)
"MSMA Method"
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1% 2% 3% 5% 7% 9% 15%
Interest rates
Figure 5 Comparison of Life Cycle Cost (LCC) of the traditional and MSMA methods at
various interest rate.
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and become equal at about 15% interest Conference on Urban Storm Drainage,
rate. LCC analysis must take into account Sydney.
the full range of benefits, downstream 6. Evangelisti, M., Moran, T.G. and
implications and maintenance implications Mouritz, M. (1993). Water Sensitive
of each system to enable holistic and Urban Design - A Tool for Urban
comparative cost-benefit-risk assessment. Integrated Catchment Management,
Prepared for Melbourne Parks and
Waterways, Melbourne Water
Acknowledgements Corporation, 33p.
7. Evangelisti, M. and Mouritz, M.
The authors would like to express their (1994). Water Sensitive Urban Design
gratitude to the Department of Irrigation Seminar. How Do You Do It? 12 th
and Drainage, Malaysia for funding the September, Perth, Australia, 235p.
research. Appreciation also goes to Mr. 8. Hellstrom, D. (1998) Nutrient
Mohd Fazly Yusof, Ms Anita Ainan, Mr Management in Sewerage Systems:
Lau Tze Liang and Ms Khairul Rahmah Investigations of Components and
Ayub for their involvements in this Exergy Analysis. PhD thesis,
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