| |
Project Costs and Revenue Potential
|
|
Project Costs
At
this stage of work the various SRFD Proposals have only been
schematically defined. To arrive at the preliminary base cost
estimate for the project, at various places, it has been necessary
to use approximate quantity estimates. It has also been necessary
to make assumptions regarding the eventual design of various
components. Unit rates used to derive costs are based on these
assumptions and prevailing market conditions. On account of
this the project cost may vary when detailed design is undertaken.
Effort has been made to include all foreseeable costs. Wherever
it is not possible to estimate costs at this stage, it has
been clearly indicated. Calculations for quantity estimation,
design assumptions, and the sources used for determining unit
costs have been adequately documented and are available with
EPC.
Revenue Potential
It is proposed that approximately 21 percent of the reclaimed land (34.6 ha) be sold for residential or commercial development. To estimate the revenues that are likely to accrue from the sale of land, a systematic analysis of land prices along the riverbanks during the last five years was undertaken. Based on this and the proposed development of infrastructure and other facilities on the reclaimed land a forecasting exercise was carried out. Each parcel of land for sale was treated separately - therefore each parcel's location, new facilities and existing developments surrounding it, and potential for development were taken into consideration.
|