PROJECTS / Maintenance Cost Calculation Using RAV Study

Maintenance Cost Calculation Using RAV Study

Latin America and the Caribbean

January 15, 2025

Water – En Energiebedrijf (WEB) Aruba is interested in estimating a prudent maintenance budget using WEB’s Replacement Asset Value (RAV) and a maintenance cost ratio (MCR).
Under this assignment, K&M was responsible for calculating the Replacement Asset Value (RAV) for WEB’s assets (using the CEPCI index and original asset price), conducting a literature review and market research to understand the industry-standard MCR, calculating WEBs historic MCRs to analyze trends, and using the RAV and MCR to calculate the prudent maintenance budget for the upcoming year. K&M will provide both this calculation and a report describing the methodology, sources, assumptions and results that can also serve as a guide for WEB to conduct these calculations in the future.

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