The Borehole Costing Model

The Borehole Costing Model was developed in 2009 by Cranfield University and SKAT with support from UNICEF (Fonseca et. al, 2011). The aim of the tool is to look specifically at borehole costs. Its accompanying spreadsheet enables drilling companies and clients to estimate the cost of drilling boreholes taking into account the depth, geology, fuel prices, equipment used, labour costs, as well as a number of other key factors.

Once set up the model can quickly calculate the actual cost of a borehole (not the price). The first time the model is used it requires the unit costs to be entered for different materials and rigs.

The model consists of three components: model unit costs, borehole specifications and results. It considers costs that are incurred in six steps of a drilling process (Fonseca et.al, 2011):

1) Baseline costs

2) Mobilisation

3) Drilling

4) Completion

5) Well development

6) Results

The tool calculates capital expenditures detailed in a bill of quantities. The tool is part of a wider initiative by the Rural Water Supply Network (RWSN) and SKAT to develop cost-effective boreholes.

Key documents

Fonseca, C., Dubé, A. and Verhoeven J., 2011. Cost-based decision support tools for water and sanitation. (WASHCost working paper 4). The Hague, The Netherlands: IRC International Water and Sanitation Centre

Heath, T. et al., 2009. Borehole Costing Model V2.8 BETA. St Gallen, Switzerland: , Rural Water Supply Network (RWSN), Skat Foundation