The Strong and Weak Participants in the Multipurpose Engineering Projects and the Problem of Dividing the Common Expenditures (The Case Study of the Virtual Water Project)

L. B. Sheynin ()

Economics of Contemporary Russia, issue 1

Abstract: The method of dividing common expenditures for water project, which is proportional to the volumes of water, assigned for each participant of the project, it can’t be applied to the participants having no relation to the water (for example, the railroad (or the railways) put along the dam comb). Other methods for distributing total costs are based on different indices of participants’ benefits, such as: 1) the absolute efficiency attained by each participant and 2) the relative efficiency attained by each participant and resulted from the fact that a part of total costs is taken by other participants. The author suggests applying the first index to the so-called strong participants, while applying the second one to the so-called weak participants. He pays attention to the problem of dividing common and particular expenditures of different participants.

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