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electrical, grid connection and non-EPC costs. The cost components are described in the

table 14.

Table 20. Investment Costs Components

System Components Price (USD)

A. EPC Costs

Bio-digester System

1 Preparation works 22,417

2 Civil & earth works

404,733

3 Engineering 137,953

Sub Total 565,103

Mechanical

Equipment

1 Biogas reactor material & installation 153,133

2 Mechanical equipment for POME processing 39,661

3 Mechanical equipment for gas handling 128,551

4 Utilities 44,345

Sub Total 365,689

Electrical &

Instrumentation

System

1 Transformer & MW switchgear 20 kV 46,673

2 MCC, local control station, distribution panel 41,593

3 Cable, wire, grounding 23,310

4 Lightning protection 5,284

5 Lighting & others 6,752

6 Instrumentation 138,690

Sub Total 262,301

Piping 147,077

Gas Engines - 2 x 0.6 MWe

- Accessories, installation and transportation

825,550

Other Costs Project support and management 187,390

Commissioning 250,120

Liquidity damage insurance 13,181

Grid connection 1 km 32,885

VAT 10% 264,929

Contingency 5% 145,711

Sub Total of other costs 894,215

TOTAL EPC COSTS 3,059,934

B. Non-EPC Costs

Other Costs 1 Project Development (license and permit) 38,462

70

2 Bank guarantee to MEMR (5%) 153,380

3 Land acquisition 115,385

4 Financing cost (2%) 30,599

5 Interest During Construction 91,798

6 Initial Working Capital 56,677

Sub Total 486,301

TOTAL INVESTMENT COSTS 3,546,235

The investment cost consists of bio-digester system which covers access clearing,

mobilization of equipment and some civil works such as road and access; biogas

management system which consists of the lagoon works including soil movements, soil

compacting, piping and lagoon cover; electrical and instrumentation system which consists

of installing instruments (please describe) and electrical wirings and equipment; and the

rest is for installation, logistics and project management. The cost is already taken as of

Muaro Jambi, Jambi.

As the project is assumed to have loan ratio of 50, we have added additional financing

costs as much as 2% from the loan portion or USD 30,599 and IDC of 91,798. We have also

set the working capital proportionately calculated based on the operating costs for 3

months, which amounted to USD 56,677. A total of USD 486,301 of other costs is then

added to the investment costs.

10.2.2 Breakdown of O&M costs

Operation and maintenance of a biogas digester is considered not complicated neither

need too many workforces. 6 operators are needed to operate and maintain the biogas

project, 2 operators working for each shift, 2 shifts per day. In addition maintenance for

delicate equipment such as the scrubbers, filters, blowers, electrical system and co-firing

system (flare) will be done by the technology provider during the first three years. The

maintenance of gas engines is assumed to be done by the gas engines provider as part of

after sales service. Table 21 shows the breakdown of annual operation and maintenance

costs.