Effects of design flow and treatment level on construction and operation costs of municipal wastewater treatment plants and their implications on policy making.

Construction costs of 55 municipal wastewater treatment plants in Israel (secondary, advanced secondary, and advanced treatment) were analysed in order to derive cost functions expressing the effects of design flow and treatment level on construction costs. Three equations were derived (statistically significant, p<0.01), one for each treatment level. These indicate that economy of scale may become weaker as treatment level rises. Analysis of the distribution of construction costs revealed negative correlation (p<0.05) between the proportional cost of civil engineering and design flow, positive correlation (p<0.05) between the proportional cost of elecromechanical equipment and design flow, and no correlation between the proportional cost of electricity and control and design flow. Operation costs were found to be 20-70% more sensitive than construction costs to treatment level. The share of operation costs as part of the total annual costs was found to increase both with design flow and treatment level, whereas the share of construction costs concurrently decreased. The implication of the findings on policy, and consequently on treatment plants performance is discussed in the last part of the paper.