ESTIMATION & COSTING BY BN DUTTA PDF

Site plan of the proposal c It should also clearly mention about the acquisition of land, Provision of electric and water supply etc. Plinth area Estimate Based on Rough Cost Plinth area of a building means Length x Breadth roofed portion only excluding plinth offsets. The estimates are prepared on the basis of plinth areas of the various buildings proposed to be constructed. The rates are being arrived at the dividing the total cost of construction with its plinth area.

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Does not include self-generators not selling to the Grid. The table presents the private agents that currently constitute the regular electricity system the grid. To complete the picture of the sector, two more groups have to be included. The first, also private, is constituted by a group of producers self-generators who co-generate electricity for their own IDB, OVE.

October , pp. Paredes pp. Paredes argues furthermore that an initial electricity price increase may have been justified, because JPSCo was starved of investments and the sector was suffering from blackouts as a result. A proper process of privatization, he concludes, with the regulatory rules set in advance and with subsequent regulation well carried out, might have resulted in decreased future prices op.

They fulfill their own need for steam and electricity and could in principle sell surplus capacity or energy to the grid. The most important among these are the sugar and bauxite industries. These industries self-generate at a capacity of approximately MW,14 of which some at 30 MW correspond to the sugar industry. Thus the GOJ has created a special publicly owned company, the Rural Electrification Program Limited REP , incorporated in as an executive agency of the government to take charge of rural electrification.

Today, REP concentrates its activities in the construction of electrical distribution pole lines in non-electrified areas and the provision of house wiring assistance through affordable loan programs to households that are then given access to the service from the newly erected lines.

Additionally, REP offers house-wiring assistance to needy households in already electrified areas through a Revolving Fund Program. Recently, REP has also been given the mandate to carry out an Urban Electricity Regularization Program UERP to regularize illegal connections in urban areas as part of a larger effort to reduce commercial losses. As of March , the REP had provided electricity access to some 74, households. The program has been implemented using concessional funds or government subsidies.

The REP has attempted to use renewable technologies to provide electricity to homes where the cost of extending the distribution grid would be too high, such as in areas where the lines would connect less than 20 houses per mile.

A program in equipped two villages, about 45 homes, with photovoltaic PV technology on a test basis using funds from the 14 Sampson, Cezley. University of the West Indies. The World Bank mentions that the capacity of the bauxite industry is MW, and that self-generation in the sugar industry is around 25 MW.

For the previous year this figure is approximately MW higher. This test program showed that administrative and technical sustainability could be a problem. The Electric Lighting Act sets the general framework for the governance of the sector, and in particular, the power of the government represented by the relevant minister to grant licenses to any local authority, company, or person to supply electricity and to regulate, inter alia, prices, security, and quality of energy supply and safety.

The Office of Utilities Regulation Act gives the OUR the function of regulating the provision of services by licensees as well as other functions necessary to carry out its regulatory mandate. In some instances in particular, the approval of applications for a licence its functions are directed at advising the Minister on the relevant course of action.

In others, such as with respect to rates or fares, the OUR has the power to determine prices in accordance with the provisions of the Act. Lastly, the OUR provides guidance and relevant standards and provisions with respect to quality and safety, environment, effectiveness, reliability, and cost efficiency of services.

With respect to its finances Section 6 of the Act , the OUR has autonomous funds coming from licence fees and regulatory service fees. It is not clear whether this provision might constitute an obstacle to acquiring, and especially retaining, highly qualified and talented personnel, who may be lured away by private providers if the remuneration is not adequately calibrated or if the procedures to determine it do not give enough flexibility.

Information obtained indicates that the OUR salaries are not competitive enough with those of the private industry in the same sector. This is an important aspect, as the OUR is also responsible for planning the expansion of the energy system and management and administration, when applicable. Ministry of Commerce, Science and Technology, All-Island Electrical Licence , Condition 1.

In these cases the electricity business is comprised of four activities: generation, 17 10 The Electricity Sector electricity throughout Jamaica for a period of 20 years. The Licence also granted the company exclusive right to develop new generation capacity from to JPSCo is also responsible to put together requests for proposals and to conduct tender processes if JPSCo itself is not offering a bid; or, if it is participating in the tenders, to hire an independent evaluator to conduct the tender process.

Such a process must obtain the approval of the OUR. In order to correct the issue raised above, and as a condition for the GOJ to accept the transfer of ownership of JPSCo to Marubeni, Marubeni consented to a Letter of Agreement in favor of the GOJ, whereby it committed to accept, inter alia, that the responsibility for the preparation and revision of all requisite LCEP for adding generation capacity to the national grid would be transferred to the OUR.

The management and administration of the competitive process for the addition of new generating capacity would also be transferred from JPSCo to the OUR. The OUR needs quantitative and qualitative reinforcement in i power sector planning, costing, tariff setting and finance; ii legal matters and contract enforcement; iii availability of planning, financial and tariff analysis instruments; and iv management of information database on the sector.

In order to determine this rate and its variation, the Licence distinguishes several components that go into the determination of the rate: i a non-fuel base rate; ii a fuel rate; and iii extraordinary costs related to government-imposed obligations.

The non-fuel base rate is determined every five years, starting in Rates are also adjusted monthly by an index reflecting foreign exchange variations. The non-fuel base rates annual adjustment, heart of the price cap mechanism, adjusts for four factors. This combination comprises the performance-based rate adjustment mechanism PBRM which is summarized in the following formula: 12 22 From to the initial non-fuel base rates were based on the tariff regime that was effective before the Licence, on February 1, with periodic adjustments, for inflation and exchange rate changes only, until May 31 It was corrected then.

Thus 0. As can be seen, this formula is intended to represent the exogenous increases in costs caused by US and Jamaican inflation as translated into Jamaican prices.

The inflation plus devaluation adjustment conveyed by the formula is very specific. Z depends on occurrences such as natural disasters, which have to be examined case by case.

The quality factor Q depends on the incentives the regulator establishes to improve the quality of service. They are related to indices reflecting the frequency and duration of interruptions of service blackouts , for which the regulators establish a rate of improvement in this case, of decrease in the indices with a band around the resulting trend. There are thus two adjustments for the non-fuel rate which involve the positive or negative growth of the exchange rate: one adjusts once per period normally per year for the change in the annual exchange rate that affects the costs of imported inputs as expressed in Jamaican dollars.

The second one adjusts for monthly changes in the exchange rate. It is not clear what the justification is for this double adjustment. It may result in increasing the total adjustment by more than the real impact of the change in the exchange rate. It represents the total cost of fuel including the cost of fuel for energy purchased from IPPs required to produce and deliver one kWh of electricity. It is adjusted monthly on the basis of the total fuel computed to have been consumed by JPSCo and IPPs in the production of electricity adjusted for the applicable system heat rate and system losses.

The applicable system losses are also determined periodically by the OUR. The regulation of the privatized industry, which started in , has experienced a process of growth in which inadequacies discovered in the regulatory system are being remedied.

As mentioned this has implications for the staff and training needs of the OUR. As recently suggested, one task that needs to be done, especially at this moment when a new five-year Tariff Review process is taking place, is the technical audit of the price cap formulas in order to better adapt them to the new challenges that the sector will be facing.

This could be one more aspect to examine. It is suggested that the tariff formula be submitted to a technical audit.

Coverage Jamaica has a high degree of coverage for electricity.

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