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Capital expenditures (CAPEX) for a typical water utility include expenses on new, replaced or refurbished capital assets, such as the construction or purchase of wastewater treatment and water distribution equipment. A CAPEX budget includes investment on reservoirs, treatment plants, water towers, long-distance mains, pumping stations, meters and other infrastructure components. Utilities worldwide spend US$90-100 billion on CAPEX each year. According to a Sensus utility research study, more than 50% of 300 survey respondents reported funding constraints for capital infrastructure projects (Sensus Water 20/20 Report).
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