Hydrologic-economic appraisal of inter-basin water transfer projects

[摘要] ENGLISH ABSTRACT: South Africa‟s hydrological and geographical characteristics, coupled with the location of a large part of its mineral endowment, required the development of the complex Vaal River Supply System, including inter-basin water transfer (IBT) projects which have been in operation for over twenty-five years. This research compares the actual water transfers of two such IBTs with their original, appraisal stage, predictions. Transfers are shown to be significantly less and also more variable than predicted. Further research reveals that the state of the receiving system has a large bearing on year-to-year decisions regarding transfers. Past appraisals, following what is called the Incremental Approach, do not adequately consider the likely future inter-basin transfer operating regime. Examination of six case studies, four South African, one Chinese and one Australian, shows that the Incremental Approach is still in general use – despite tools available for an improved approach. A new approach is proposed to upgrade estimations of variable costs associated with water transfers – often substantial life-cycle cost components of IBTs. The generally used unit reference value (URV) measure for appraising and ranking water resource projects in South Africa is also rooted in the economic theory of cost-effectiveness. This shows that the current approach is conceptually flawed; it fails to distinguish between water transfers and effectiveness outputs. The determination of the URV equation is expanded and improved. The upgraded appraisal approach, inclusive of the improved URV methodology, is named the Comprehensive Approach.A step-wise demonstration of the Comprehensive Approach is provided. Uncertainty regarding future water transfers and associated variable costs are provided for by stochastic simulation modelling. Decision analysis theory is applied to obtain the appropriate input value of variable costs. It is shown that the Comprehensive Approach can lead to an outcome significantly different from the Incremental Approach. The research provides new insights, placing water resource planning practitioners in a better position to recommend appropriate IBTs in future. These insights can also be transferred to the design of institutional and financial models related to IBTs, as well as the configuration and operation of supply systems including sea-water desalination projects.

[发布机构] Stellenbosch University