Project Costs and Finances:

The cycle shown in figure is repeated till the last time period of construction schedule. Then whole interest accrued in previous years is summed-up as total IDC and added to the project cost like any other element costs discussed in previous paragraphs.

Once these project cost elements are finalized, apportioning the cost although implementing the project would depend upon whether the Utility decides to go ahead along with unit rate contracts or turnkey contracts. This would be different for internal cost estimates for tendering reasons. The present cost estimates and payback period calculations are for the purpose of getting the finance for the schemes conceived under DPR. The sum total of all the components discussed so far constitute the "Total Fixed Investment" and is used for calculation of payback period.

The description up to this point is summarized in the pi-chart display below giving an account of all the ingredients of fixed capital investment.

Figure: Summary of Project Costs and Finances