COSTS AND PRICING POLICIES RELATED TO TRANSPORTING WATER BY TANKER FROM TURKEY TO NORTH CYPRUS

Water shortages in North Cyprus are quite evident and both supply and demand policies to alleviate these shortages are urgently needed.This paper reports on an evaluation we have carried out on the financial feasibility of importing water by tanker from Manavgat (Turkey) to Kumkoy (North Cyprus). The break-even real price of water (1998 prices) reflecting the cost per cubic meter (m3) will be calculated at various stages of the delivery process. The cost of water to the shore of North Cyprus reflects only the transportation cost, while the cost to Kumkoy reservoir will include the cost of infrastructure to be built in North Cyprus. The cost of water to households will take into account the high rate of leakage in the distribution systems.