The risk of pipe-bursting in multi-regional transmission mains consisting of 89% of singled pipeline is high enough. Therefore, a pipeline stabilization project is required such as renewal, replacement, pipe paralleling, emergency ties, and so on.
Pipeline stabilization projects are not considered to be very important because of most effects of this project are the intangible benefit such as activation of economy and improvement of welfare related to water. This study is to suggest quantified economical feasibility model for intangible benefit presumption to solve above problem.
Benefit items are classified into water demand and supply aspects. In aspect of water demand, adequacy of Contingent Valuation Method (CVM) is suggested in consideration of domestic and foreign study review in the view of improvement benefit for reliability of water supply under the pipeline stabilization.
The result of CVM estimation of Gumi muti-regional water supply system was applied in this study as defined Benefit-Transfer. Cost reduction of emergency water supply, leakage, burst restore and energy efficiency improvement is altered and applied. In the meanwhile, the total cost of project of this study is estimated by using EPANET, hydraulic pipeline network analysis model. As a result of economic feasibility taking into account estimated benefit and cost under discount rate 5.5 %, service life 40 years, sufficient economic feasibility analyzed with B/C 2.45, NPV 317,700 million won, IRR 9.09 %.
Although water is general competition goods in economic definition, water has strong public character and services as necessary goods closely related to people life and industrial activities. Unless economic feasibility for enormous project cost is sufficient, it is difficult to secure the appropriateness of pipeline stabilization project. Because water supply alternatives are various in addition multi-regional water supply system. This study for intangible benefit quantifying will contribute to improve economic feasibility of pipeline stabilization project.
The existing CVM analysis result is transferred to this study in order to estimate benefit of water supply reliability improvement. This method was developed to reduce the analysis cost and time of existing analysis method, and it should be applied to new project under strict consideration for similarity of estimated benefit and both project. As a methodology is suggested in terms of scientific aspect, this study is performed with the only case review based on simple assumption. It is recommended to apply CVM to real projects about improvement of water supply reliability