Distribution of the expenditures of a multipurpose water project

Abstract

1. When distributing the expenditures of a multipurpose water project it is recommended to take into account the effect of individual water consumers and users on the economic indexes of the project. If a given participant lessens the economic indexes of the project, allocatable expenditures are generally assigned to him. The remaining expenditures of the project are distributed among the remaining participants, using approximately the principle of equal effectiveness. 2. The method proposed is applicable when using indexes of the relative and overall effectiveness of capital investments. In the first case it is necessary to have a thoroughly substantiated selection of the most economic substitutional variants, and, in the second case, it is necessary to use scientifically substantiated prices for the products of the project. In connection with the economic reform and improvement of the pricing system, the distribution of expenditures of a project on the basis of criteria of overall effectiveness of investments will become increasingly more important.