Valle [---------------] Hydroelectric Power and Water Supply
Feasibility Study

Boquete, Panama

  By:
Osa Water Works, S.A.

November 14, 2000

1.0  Introduction

 

            Valle [---------------] is a development project just outside of Boquete, located on the slopes of Baru Volcano in the Panamanian province of Chiriquν.  The lower part of the valley is owned by [------------], S.A. which is developing the valley as a planned community to include upscale vacation homes, condominiums, tourist activities, and the commercial/services infrastructure (stores, restaurants, boutiques, medical clinic, equestrian facilities) needed for the added convenience of the community residents and visitors.

 

Osa Water Works, S.A. was contracted by [------------], S.A. to undertake a feasibility study of developing the property’s existing natural resources for hydroelectric power generation and community potable water supply.  This report summarizes the field survey findings and presents an economic evaluation of the various system configurations that were identified as viable options during the course of the field study.

 

2.0  Physiography and Climate

 

            The Valle [---------------] property encompasses 47 hectares in the lower part of the valley shown in Figure 1.  The climate is tropical alpine with abundant rain (about 2800 mm annually) with a wet season from May to November, a dry season from December to June, and year-round Spring-like temperatures. 

 

The geology of the area is predominated by extrusive igneous rocks, and indeed, the valley lies in the shadow of Panama’s highest point, Volcan Barϊ, a dormant volcano 11,401 feet in elevation that last erupted about 1000 years ago.  Soils are well-developed, black, and highly fertile.  Coffee is cultivated across the breadth of the valley and in neighboring valleys as well.  The property that borders Valle [---------------] upstream is used for cattle.  

 Figure 1.  Map (in progress) of the Boquete/Valle [---------------] region (Courtesy of John Nelson).

3.0  Hydrology

The perennial stream that drains Valle [---------------] descends from the mountain headwaters above the boundary of the Valle [---------------] property.  About two hundred meters upstream of the property boundary a large spring emerges at the same approximate elevation as the stream bed on the toe of the western escarpment of the valley.  The spring discharge more than doubles the size of the stream and is an uninterrupted year-round source (Figure 2).  The municipality of Boquete derives its potable water supply from this spring by means of an 8” water line that passes through the Valle [---------------] property under an easement.  Water withdrawals for municipal water consumption appear to represent less than 25 percent of the total spring discharge.  In addition to the major spring discussed above, there are a large number of smaller springs and seeps that emerge from the western escarpment of the valley and the canyons that dissect the western escarpment.  Subsurface water flow occurs along the bedding planes of the ash flows that comprise the western valley wall.  Examination of a canyon dissecting the western wall revealed that the volcanic units have variable resistence to physical and chemical erosion, which causes some units to serve as perching units for descending waters.  Also, the ash flows each contain distinctive patterns of clast inclusion.  Some beds contain very large, rounded cobbles and boulders in the ash matrix, which results in increased porosity and permeability.  Other units are better sorted and fine-grained and are less hydraulically conductive.  All the extrusive beds contain vertical fractures that allow for the vertical descent of percolating rain water and mountain runoff.

4.0  Hydroelectric Field Survey

 

The two most critical design variables of hydroelectric power generation are:  1) available head, and 2) available water flow. 

 

4.1  Head

 

Professional surveyors contracted by Valle [---------------] used laser-sighting survey methods to generate the data necessary for a large-scale topographic map of the property (Figure 1).  On the basis of their preliminary results, a total elevation drop between the upper and lower property boundaries was determined to be 210 feet.  This measurement approximately correlated with the elevation differences measured by OWW using an altimeter (180 feet) and GPS (200 feet).

 

Two additional methods were applied for corroboration:  1) static water pressure measurement and 2) field surveying using inclinometer, hip chain, and trigonometric relationships.  The static water pressure application is used regularly by OWW in steep terrane but did not yield useful information in Valle [---------------] due to the shallow land-surface gradient.  Field surveying yielded a total elevation difference of only 165 feet, which did not corroborate the information obtained by altimeter, GPS, and laser-sighting.  The river bed surface profile that is shown in Figure 3 was corrected, therefore, from the field data to reflect a total elevation drop for system design purposes of 190 feet.

 

Examination of the stream bed profile (Figure 3) reveals that the gradient across the 4440 linear feet of stream run is nearly constant.  As a result of the homogeneity of the valley’s slope, there is no hydraulic advantage in any part of the watershed.  As a consequence of this fact, there is no energetic advantage in focusing on one portion or another of the river.  In order to get the maximum energy output of a hydroelectric power generation system, it is necessary to use the entire range of available head, which means a hydroelectric power pipeline extending from the upper to the lower property boundaries. 

Figure 3.  River Channel Profile from the location of the proposed dam site to the Indian Camp at the lower boundary of the Valle [---------------] property (see Figure 1 for locations).  Field data has been corrected to reflect 190 feet in total elevation difference (see text for details.)

 

 

 

 

 

 

4.2  River Flow

 

Flow measurement was made along river reaches with good hydraulic controls using the continuity equation (Q=VA, where Q=discharge in cubic feet per second, V=Velocity in feet per second, and A=Cross-sectional area in square feet) integrated across five to eight arbitrarily segmented portions of the entire river cross section.  Velocity was measured for each arbitrary segment at the surface rather than at the optimal depth of 0.6 times the total depth.  As a result, the flows reported are conservative and the actual flow exceeds the flow reported by about 15%.  The accuracy of the method itself is +/- 15%.  Therefore, the flow measurements are conservative and could range from a low of the flow rates reported to as high as 30% in excess of the values reported.

 

Flow was measured at four locations, one just beneath the confluence of the spring and the stream and the other three in the locations shown in Figure 3.  The flow rate measured in these four locations is given in Table 1.

 

Table 1.  Flow rate of the Valle [---------------] River in four portions of the river (see Figure 1 for flow measurement locations.

 

Location

Map ID

Flow (gallons per minute)

Confluence of spring and stream

Q1

20,400

Where the road turns inland and uphill among the coffee

Q2

24,000

Just beneath the bridge

Q3

25,000

Indian Camp

Q4

23,630

 

Given the +/- 15% accuracy of the measurement method, the three downstream measurements are statistically indistinguishable.  The larger values measured downstream (about 24,000 gpm) are logical results of water gains from the springs that discharge into the stream along its course as well as likely base-flow gains directly to the river.  Again, the measurements are conservative, and the actual flow rate may be expected to be as much as 30% higher than the flows reported but not lower.

4.3  Additional Design Considerations

 

There are a number of supplemental considerations that must be considered in the feasibility and in the ultimate design of a hydroelectric power generation system in Valle [---------------].  These are summarized briefly below.

 

  1. Aesthetics.  The Valle [---------------] development project consists of an exclusive resort community with all the encumbent considerations.  The aesthetic development of existing resources is critical to the appeal of the valley itself.  Consequently, the hydro-power pipeline will need to be buried where possible and installed in such a way that the tropical alpine beauty of the setting is not compromised.

 

  1. Fisheries.  The river is fed by mountain water and spring water and has a temperature capable of supporting a modest trout fishery.  The stream is picture-book perfect for a small-scale catch-and-release sport fishing program.  Previous studies have indicated that the reach of river contained by the property is capable of supporting up to 300 trout of a size that would appeal to fishermen.  Installation of a hydro-power system will inevitably compromise this habitat to some extent given that water must be channeled through a pipeline across the property length in order to harvest its kinetic energy.  The ultimate system design must take into account the preservation of as much trout habitat as possible.

 

  1. Grid Power.  Municipal grid power is within easy reach of the Valle [---------------] development project.  Consequently, a hydroelectric power generation system is not absolutely required to ensure the viability of the development project.  The entire economic feasibility of this proposed installation has been calculated on the basis of a retail energy value of $US 0.10 / kW and a legally mandated wholesale buy-back value of $US 0.05 / kW, which the Panamanian utility company is required to purchase where available.

 

  1. Flood Control.  The burbling Valle [---------------] brook studied in this feasibility study will occasionally turn into a raging river of enormously destructive power as a simple consequence of rainfall runoff during extreme hydrologic events.  The Valle [---------------] development design must take flooding into consideration in one or more of several ways including: 1) restrictions on construction in the flood plain of the stream; 2) diking in sensitive areas; and 3) installation of a flood control reservoir.  Effective development planning should include a flood-impact analysis based on rainfall-runoff relationships and valley geometry.

 

4.4  Hydroelectric Design Parameters

 

  1. Head.  This feasibility evaluation has been made on the basis of utilizing the entire available head of 190 feet.

 

  1. Flow Rate.  This evaluation has been made on the basis of using  a flow rate of 10,000 gpm.

 

  1. Pipeline length.  The length of pipeline necessary to transmit water from the upper to the lower boundaries of the property is 4,200 feet.  This is less than the linear stream run distance of 4440 feet since the latter includes meanders in the river, which will be circumvented by the installed pipeline.

 

  1. Pipeline size.  Friction losses (head loss) of piping are inversely proportional to pipe diameter.  Due to the relatively long piping run (4200 feet), total head loss dramatically affects the amount of energy that can be generated.   The optimal pipe diameter for this application is 30 inches.

 

  1. Water Intake.  Alternating-current direct power generation has a critical dependence upon homogeneity in flow rates.  AC-direct systems like the one under proposal must have hydraulic controls in place that keep the turbine delivery flow rate through the nozzle within a narrow range of values.  Seasonal variations in flow can be accommodated, and the system may be operated under a nearly infinite variation in flow. In order to achieve consistency in water intake regardless of seasonal fluctuations, it is necessary to install an appropriate intake structure, which for a system of the scale under proposal, consists of a reservoir.  Impoundment of a small section of the upper property area would enable withdrawal of one half of the river discharge for power generation and discharge of one half of the river discharge over the dam spillway

 

  1. Flood Control and Additional Flow for Power Generation.  The upper end of the Valle [---------------] property is ideal for the installation of a reservoir.  There is very good valley wall control for the installation of a dam (Figure 1).  The point of control opens into a bowl area with a natural depression for water storage (Figure 4).  There is a thick soil development in this area, which provides for the possibility of the installation of a combination earthen/concrete dam using soil excavated from the valley floor.  Removal of soils for construction of the earthen portion of the dam will have the added benefit of commensurately increasing the reservoir storage capacity.  The dam would have a total length of 168 feet (figure 5) and would impound 3-5 million gallons of water at a height of 8-10 feet above the elevation of the river channel.  This storage capacity offers the possibility of boosting the hydro-power pipeline with an additional 5000 gallons per minute for a period of 8-12 hours per day during times of peak usage.  Water withdrawals made during peak energy usage would be replaced by river input over the remaining period of the day.  Moreover, during high flows, up to 20,000 gpm can be withdrawn for hydroelectric power generation for additional power production and increased flood control capability.

  1. On-Site Hydroelectric Generation vs. Grid Power.  Privately owned and operated small and medium-scale hydroelectric power generation has been employed for decades all around the world and is a well-documented and time-tested technology.  Electrical autonomy is particularly attractive in developing countries where grid power disruptions and brown-outs are commonplace.  For a development project such as Valle [---------------], an additional attraction to the creation of a private utility district is the ability to derive income and offset costs for infrastructural installations (power transmission lines, transformers, etc.) that would be required for connection to the grid anyway.

 

  1. System Design & Utility Intertie.  The hydroelectric generation equipment package most appropriate for the Valle [---------------] application includes a custom-designed cross-flow turbine featuring foil-shaped machined and ground, heat-treated steel buckets and ground-runner assembly, labyrinth seals, and flange-mount spherical roller bearings.  The external housing unit is constructed of heavy plate steel and comes equipped with a flanged base and intake to meet site requirements. To regulate flow, the equipment is equipped with a rotating, manually-controlled, variable-flow nozzle assembly accommodating a maximum flow rate of 26 CFS (1200 gpm).  Power generation is achieved with a Stamford generator using a brushless, 1800 RPM, synchronous industrial alternator with a helical gear speed increaser.  The resultant power output is up to 350 KW, 240/480 VAC, three phase electricity.  The package includes the basic switch gear and controls necessary to ensure the equipment will not operate during grid interruption, protect the grid and the equipment, monitor system output, synchronize and interface the system with the utility grid, and control turbine flow. A variety of options are available for a plant this size, including automatic flow control based on head water level, automatic restart after grid interruption, and telephone controls and/or alarms. The physical proximity of Valle [---------------] to the town of Boquete and its existing electrical grid makes this project the perfect candidate for a utility intertie system. Coupled with the fact that Panama Nacional is obligated to purchase any privately generated electricity that complies with their standards of quality, the return on investment could start immediately after installation of the system and prior to completion of the proposed residences.  For this to occur, utility lines should be brought into the property prior to or in conjunction with the final installation of the generating plant.

 

  1. Power Transmission.  Whether the electrical generation point is at the Pueblo or at the Indian Camp at the lower end of the property, the transmission lines throughout the property will need to be installed based on the complete plans of the development. At the time of installation of the utility intertie lines an additional cost per meter can be determined to transmit power to appropriate distribution points throughout the property.

 

4.5  Economic Analysis

 

In order to evaluate the economic viability of the proposed hydroelectric installation, three estimations were made on the basis of known information and approximated costs under two possible system configurations:  1)  from the proposed dam to the Indian Camp; and 2) from the proposed dam to the Pueblo.  These estimations include:  1)  capital cost of construction/installation/commissioning; 2) annual operating costs; and 3) annual value of energy at the wholesale buy-back value of $0.05/kW and the retail cost of Panamanian electricity ($0.10/kW). 

 

4.5.1  Capital Costs.  Anticipated capital costs for the two system configurations are given below.

 

 

4.5.1.1  Dam Site to Indian Camp.  Capital costs of this configuration are itemized in Table 2.

 

 

 

 

 

 

 

 

 

 

 

 

Table 2.  Itemized capital costs from the dam site to Indian Camp.

 

Item

Cost

Engineering and Design

9,500

Reservoir and Dam construction

63,000

Pipeline installation

175,000

Pelton House

20,000

Power Generation System

180,000

Construction Management/Installation

18,000

Subtotal

465,500

OWW profit (20%)

93,000

TOTAL CAPITAL COSTS

558,600

 

 

4.5.1.2  Dam Site to Pueblo

 

Total costs would be somewhat less than a pipeline extending to the Indian Camp owing to the lower pipeline distance.  Also, there would be a reduced cost in power transmission lines.  Capital costs for this configuration are approximated therefore at $525,000.

 

 

4.5.2  Operating Costs.  Annual operating costs include one part-time technician, minor maintenance items and periodic replacement of the pelton bearings.  Approximation of annual operating costs are given in Table 3.

 

Table 3.  Annual Operating costs.

 

Item

Cost

Technician

3,750

Maintenance

5,000

TOTAL ANNUAL OPERATING COST

8,750

 

 

4.5.3        Anticipated Revenues.  Anticipated annual energy production and corresponding revenues are detailed in Table 4. 

 

Table 4.  Anticipated revenues of several system configurations.

 

Pipeline Extent

Flow Rate

Time

Annual kW

@ $0.05/kW

@ $0.10/kW

Dam ΰ Indian Camp

10,000 gpm

continuous

1.9 million

95,000

181,000

Dam ΰ Pueblo

10,000 gpm

continuous

1.38 million

69,600

139,000

 

4.5.4        Return On Investment.  The configuration options presented provide for different project payoff time periods.  These periods are summarized in Table 5.

 

 

Table 5.  Payoff periods.

 

Pipeline Run

Payoff @ 0.05/kW

Payoff @ 0.10/kW

Dam ΰ Indian Camp

6.4 years

3.2 years

Dam ΰ Pueblo

8.0 years

4.0 years

 

Following the payoff periods itemized above, the annual ROI is listed in Table 6 for the same system configurations. 

 

Table 6.  Post-Payoff Yearly Return on Investment.

 

Pipeline Run

Payoff @ 0.05/kW

Payoff @ 0.10/kW

Dam ΰ Indian Camp

$86,125

$172,250

Dam ΰ Pueblo

$65,125

$130,250

 

The life expectancy of the system components, barring natural disasters such as volcanic eruptions, earthquakes in excess of 7.2 on the Richter scale, large landslides or mudflows, and/or a 500-year flood, and socio-political irregularities such as revolution or sabotage is given in Table 7.

 

Table 7.  Life expectancy of system components.

System Component

Life Expectancy

Reservoir

100 years

Pipeline

50 years

Hydroelectric generation plant

25 years

Additional electrical equipment

25 years

                                                                                                                                        

4.6  The Hairy White Dwarf Scenario

 

On the final day of field investigations, OWW surveyed a narrow canyon on the Valle [---------------] property for water-supply exploration.  During that field investigation, a possible underground water source was identified at an elevation of about 200 feet above the Pueblo.  We were able to hear subsurface water moving through an underground conduit very near the canyon wall.  The sound of the water through the rock was substantial, indicating that an underground “river” was within tunneling proximity.  If in fact this subsurface water source proves large enough to supply a water flow in the 10-15,000 gpm range, this dramatically enhances the economic favorability of this project.  Factors that are directly affected follow.

 

1)       Pipeline length.  The pipeline length would be reduced by 75% with a concomitant capital investment reduction.

 

2)       Energy Generation.  The lower length of pipeline reduces the amount of head loss, which means that more energy can be generated at the same amount of available head and flow.

 

3)       Water Intake.  A reservoir would not be required for an intake structure.  The structure would be created within the canyon wall.

 

4)       Ecosystem enhancement.  Instead of removing water from the stream for the length of the hydro-power pipeline, this alternative would actually increase the river flow and increase the carrying capacity of the stream for a trout fishery.

                                            

5)       Boosted energy production.  Alternately, if a decision is made to run the hydro-power pipeline all the way to the Indian Camp, the increased head (about 320 feet total) would provide for even greater energy production and a commensurately increased return on investment.

 

Evaluation of this potential source requires tunneling into the subsurface water supply and measurement of the available water flow rate.  OWW is prepared to undertake this exploration effort and provide definitive results during 8-10 days of labor-intensive exploration.  Our fee for this exploration effort is included as a line-item option in the budget requirements detailed in the final section of this report.

5.0  Valle [---------------] Water District

 

The Valle [---------------] development project requires a sustainable water supply for domestic and commercial potable water supply.  The valley has enormous water resources in the form of ground and surface water.  This section documents all the engineering considerations and economics of the development of a water supply sufficient to supply the anticipated carrying capacity of the valley with potable water.

 

5.1  Water Demand

 

Domestic water consumption is calculated according to a demand of 100 gallons per person per day.  This includes all water needs for drinking, bathing, cooking, washing, and occasional irrigation.  Occupancy assumptions and corresponding water supply needs for the Valle [---------------] project are summarized in Table 8.

 

Table 8.  Water demand assumptions and calculations.

 

Item

People/Item

Occupancy

Water Consumption

10 luxury homes

6

50 %

3,000 g/d

100 condominiums

4

75 %

30,000 g/d

Commercial

N/A

N/A

5,000 g/d

TOTAL

 

 

38,000 g/d

 

Without any water storage facilities at all this water demand would require a continuous water source of 27 gpm, approximately 1/1000 of the flow rate of the Valle [---------------] stream.

 

5.2  Water Source

 

An adequate potable water supply for a water-utility district includes:  1) a water source;  2) a water treatment system (as needed);  3) water storage facilities necessary to provide appropriate pressure to the system users; and 4) a distribution system with appropriate metering for establishing use rates and corresponding charges.  If a water source can be identified that is free of bacteriologic pathogens and within an adequate range of dissolved minerals, then water treatment is unnecessary and represents a substantial savings in capital and operating costs.  Except in areas strongly impacted by anthropogenic influences, ground water is usually free of biologic pathogens.  Surface water is never completely free of such pathogens.  On the other hand, surface water normally has very low mineral content, whereas ground water normally has higher mineral content.  All things being equal, springs and wells are nearly always better water supplies than surface water sources owing to the higher purity of the water.

 

Spring water sources identified during the field investigation include the large spring that currently supplies the municipality of Boquete with potable water and a large number of smaller springs that derive their water from the same fractured volcanic rock aquifer.  The amount of water emerging from the large spring that is not used by the municipality is 100-500 times the amount of water needed for the proposed water-utility district.  Therefore, it is a viable option for Valle [---------------].  However, it emerges from the ground at the same elevation as the river level.  Consequently, a pump of some type would be needed to lift this water to a storage tank.

 

In exploring a canyon in the western wall of the valley, OWW investigators identified two springs within 100 feet of each other that discharge from solid rock at an elevation 230 feet above the valley floor.  The combined discharge of these springs was estimated at 125 gpm, or approximately 5 times the flow needed to sustain the water demand identified above.  Moreover, the 230 feet of head means that this water can be fed by gravity to a water storage tank on the other side of the valley on the ridge where the home sites are located.  This source (shown in Figures 6 & 7) is clearly preferable to the valley source since it requires no energy investment whatsoever to transmit the water.  From the water tank to the  community  and home sites, no additionalenergy investments would be required since the water tank would be situated in such a location as to provide gravity feed to all properties.

 

5.3  Water Storage

 

A storage/distribution tank is necessary in order to distribute water to smaller tanks for individual home sites on the ridge and to a single large water tank to supply the Pueblo with water for the condominiums and commercial enterprises to be located there.  In order to provide all homes with gravity-fed water, it will be necessary to situate the water storage/distribution tank approximately 93 feet above the elevation of the highest home site.  Alternately, it is possible to bury this tank in the vicinity of the highest home site, in which case a pressure tank would be required for the highest home site to attain the optimal 40 psi of water delivery pressure needed for domestic usage.  A 35,000 gallon tank of concrete block construction will be more than adequate volume for the storage/distribution tank.  The inclusion of float valves can be engineered so that water delivery is ceased once the tank is full, allowing the spring water to descend along its natural course to contribute to the flow of the valley stream.  Alternately, water can be introduced to the water tank at all times and the overflow transmitted back down the ridge on the eastern side of the valley and discharged into the river.  This alternative provides continuous turnover of the water in the tank and will reduce the tank maintenance requirements over 

 

the long term.  The tank outlet will be manifolded according to the downstream water delivery needs and equipped with a drainage/flushing valve.  Delivery of water from the springs to the storage/distribution tank will be achieved through a 3”- 4” PVC pipeline--depending on the linear distance of the piping run and corresponding head losses--buried where possible.

 

5.4  Water Distribution

 

Distribution of water from the storage/distribution tank will be achieved through the use of PVC water mains 2-3” in diameter, depending on the number of houses served by each main, and final delivery lines of 1” PVC.  Pressure diffusion tanks will be sited in such a manner as to provide each home site with the optimal domestic water delivery pressure of 40 psi.  Depending upon the configuration of home sites, this may require some homes to have their own 5,000 gallon water tank while other homes might be able to share a single storage tank sized according to the number of homes served.  Water distribution in the Pueblo would most logically be achieved from a single 20,000 gallon storage tank situated 90-100 feet above the elevation of the Pueblo.  All individual house lines would be equipped with a water meter so that monthly usage can be quickly read for water-utility billing purposes.

5.5  Economics

 

The economic feasibility of competing alternatives for water supply is somewhat of a superfluous exercise, given that the water is free, there are no foreseen treatment needs, and there are no pumping costs in the entire system.  Valle [---------------] cannot work without water, and if municipal water is used, piping must still be run and storage tanks constructed.  Moreover, pumping would be required to deliver municipal water to the home sites.  Intuitively, the proposed solution is the most economic alternative available.  For a calculation of projected ROI, it will be necessary to know the cost that will be charged for water and the desired amortization period in conjunction with the projected capital costs that are itemized in a subsequent section of this report.

 

6.0  Scope of Proposed Work

 

Water supply and power supply are two fundamentally different components of the Valle [---------------] development project.  Of these two, water supply is the priority.  Therefore, the proposed scope of work includes the following elements.

 

1)      Final design of water supply and downstream water distribution system

 

a.       2 days of field work to measure piping distances, elevations, and water flow rates.

b.      Water quality characterization.

c.       1 day of procurement and job coordination and planning.

d.      5-days of on-site management to ensure that Valle [---------------] work crews and bosses understand the scope of work installations.

e.       3-days of post-installation testing and commissioning.

 

2)      Exploration of potential hydroelectric water source subjacent to proposed water supply.

 

a.       8 days of tunneling exploration concurrent with the efforts described above.

 

3)      Design and engineering of a final hydroelectric power generation system.

 

4)      Installation of hydroelectric system.

 

7.0  Time Frame of Proposed Work

 

It will be inadviseable to make decisions about the ultimate hydroelectric power generation system until the very serious hairy white dwarf scenario is adequately explored and quantified.  Even with this information in hand, it is likely to take some time to develop the permits necessary to undertake the installation effort.  OWW is prepared to prioritize the water-supply installation and the hydroelectric ground-water exploration activities.  We will be prepared to arrive onsite for the first eight days after December 1, concluding prior to December 19.  We will return following the completion of installations (4-5 weeks thereafter) for system commissioning.

 

Engineering and design of the hydroelectric system can be completed during the month of January and installation of the pipeline, reservoir, and pelton housing can be completed in the months of February and March.  Final installation of the hydroelectric generator will depend upon delivery from the manufacturer (18-26 weeks after ordering).

 

8.0  Budget

 

Water Development

 

1.      Balance of engineering field survey…………………………………………………………….$1640.52

 

2.      Water Supply design/engineering/initiation/commissioning…………………...$6000.00 + 10% of cost

Note:  this includes design/installation of the system from the water source

through the pipeline to the main storage/distribution tank. 

 

Homesite and user distribution system can be completed in a second phase

and will carry a design and engineering fee of $3000.00 in addition to 10%

of project cost.

 

3.      Water Quality Testing and Analysis ($400/sample)…………………………………………………$800

 

Hydroelectric Development

 

1.      Water Exploration in canyon……………………………………………………………………$2000.00

Note:  This work will be undertaken concurrent to the water supply work.  We

will require four laborers, the electric air hammer, generator, and some construction

materials in order to complete this work.

 

2.      Hydroelectric system design and engineering……………………….contingent upon exploration results

 

3.      Hydroelectric installation……………………………………contingent upon final system configuration

 

4.      Housing and travel…………………………………………………………………………….………cost

Note:  Valle [---------------] will pick up the cost of lodging in a house in Boquete and

for vehicle expenses and all other direct project expenses.  OWW will pick up the

cost of our food expenses.

 

In order to proceed with the work itemized, OWW requires a deposit in our bank account for the outstanding balance of the field survey ($1640.52) and 50% of the water supply design and water exploration and water quality fees ($4400.00).  The balance of $4400.00 will be due upon completion of the first phase of the water supply project.  The final payment of the 10% of costs will be due upon completion of the testing and commissioning of the system following installation by Valle [---------------] personnel.

 

For continuing consultation and engineering on the hydroelectric development efforts, OWW will require a non-refundable retainer of $3000 and will bill at an hourly rate of $35.00 until such time as a comprehensive bid can be prepared for completion of the design and installation of the system.

 

OWW banking information for wire transfer of funds is given below:

Osa Water Works, S.A.  Account Number:  094-1425-0
Banco Nacional de Costa Rica
Puerto Jimιnez
, Costa Rica
Centroamerica
Universal Identifier Number:  019462
SWIFT:  BNCRCRSJ
www.bncr.fi.cr             tel:   506-735-5155;
bconal@racsa.co.cr                 fax:  506-735-5106

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