Estimation of EPC Cost Index for Gas Engine Power Plant Project in Indonesia

Cost estimation is one of the important things before the project is executed. It will describe how much the capital cost should be spent on the project. In the early project, it is difficult to get the appropriate cost estimation for a specific design. However, getting the high accuracy is very complex, expensive, and time-consuming due to requiring much information about the project. In the last decade, many GEPP (gas engine power plant) projects already have been constructed. The previously executed projects could be the reference for the cost estimation for the next project. Those data could be analyzed for the EPC (engineering, procurement, and construction) approximation equation. Based on this data, the study developed the cost estimation equation. This study was assumed that categorized as Class 5 of AACE (Association for the Advancement of Cost Engineering). The approximation equation was developed by using a least-squares method which is expressed with a non-linear family equation. The unit is expressed by cost index unit in USD/kW with input variable of power output in MW. The additional coefficient was added to distinguish the cost for each region. The approximation equation has been validated by other methods and verified by the actual feasibility studies. However, this estimation can describe how much the cost shall be budgeted before the project is executed easily. The estimation is intended for budgetary purposes and not be able for bidding evaluation due to less of a project definition.