Is sewage treatment with the CAPEX model a good idea?
Although a standardised model that looks appealing with full ownership and control, flexibility to expand, customised maintenance, full control of quality, and in-house expertise, it’s one with a slew of hassles and long term impacts.
- High Initial Investment & Budget Overruns: One of the primary challenges in the CAPEX model is the significant upfront capital investment required for the design, construction, and installation of STPs. These projects often face unexpected costs due to factors like site conditions, regulatory changes, or design modifications. These cost overruns can escalate the total expenditure, leading to financial challenges for the entities involved, especially affecting small businesses and local municipalities.
- Long Payback Period: The return on investment in the CAPEX model takes time, especially for smaller projects. It may take several years to recoup the initial investment through operational savings, making it a less attractive option for organizations seeking quicker returns.
- Limited Flexibility & Technological Obsolescence: Once the STP is installed under the CAPEX model, making significant changes or upgrades can be challenging and costly, making it difficult to adapt the system to changing wastewater volumes or composition. Older STPs might become obsolete, leading to inefficiencies and the need for costly upgrades or replacements to keep up with modern standards and environmental norms.
- Operational, Maintenance & In-House Expertise Responsibility: In the CAPEX model, the responsibility for operation and maintenance falls entirely on the entity that owns the STP. Managing skilled personnel, an in-house team of experts, hiring external consultants, regular maintenance, and unexpected repairs can be complex and demanding, deviating the entity from their core business.
- Regulatory Compliance Risks: Meeting evolving environmental regulations and standards is crucial. Changes in regulations can require costly upgrades or modifications to ensure compliance, adding to the operational hassles and expenses.
- Unforeseen Challenges: Unexpected issues such as equipment breakdowns, natural disasters, or accidents can disrupt the functioning of the STP. Dealing with these challenges can be financially and operationally burdensome.
- Environmental Impact: Outdated or inefficient STPs might not be able to treat wastewater to the required standards, leading to environmental pollution and potential harm to aquatic ecosystems and public health.
Why go through all the hassle when Unison can bear the burden for you?
Witness sewage treatment with advanced, compact and modular technology. Expert support for operation and regular maintenance, with customisation based on requirements. What’s more? Pay only if the treated wastewater meets the required standards! To know more, click here.
Take a look at a comparison between CAPEX and IaaS here.
