BOARD00061 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Project Loans - Southeastern Colorado Water Conservancy District Water Activity - Arkansas Valley Conduit Project
• Board Meetings - Doc Type: Memo

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Water Project Construction Loan Program - Project Data

Borrower: SECWCD - Enterprise

County: Pueblo, Crowley, Otero, Bent, Prowers

Project Name: Arkansas Valley Conduit

Project Type: Water Supply Pipeline

Drainage Basin: Arkansas

Water Source: Arkansas - Fry-Ark Project

Total Project Cost: $300,000,000

Funding Sources: CWCB, Federal

Type of Borrower: Municipal/Low

Aver. Delivery: 6,555 AF (2005 demand)

CWCB Construction Fund Loan: $60,600,000 Interest Rate: 3.25% Term: 30 years
(incl.1% loan fee)

The Arkansas Valley Conduit is designed to bring relatively clean raw water to 41 water providers in
the lower Arkansas Valley, who currently either take water from the Arkansas River, and\or pump
from shallow and\or deep aquifers. This pumped water has quality problems and requires
significant treatment before it meets Clean Drinking Water standards. The conduit will begin at
Pueblo Reservoir Dam, where a 30.94 cfs municipal outlet is already in place and reserved for the
specific use of the conduit. The conduit will gravity flow approximately 138 miles down the
Arkansas River Valley to Lamar. The conduit water will flow by the St. Charles Mesa Water District
where it will enter a water filtration plant. As the conduit moves down the valley, spurs will take off
the main line to deliver water to local and regional water providers. The conduit will receive its
water from the USBR Fryingpan-Arkansas Project. Currently, about 5,779 acre-feet of water per
year is available for entities East of Pueblo in an average year. Additionally, Return Flows are
retained by the District and can be exchanged back up to Pueblo Reservoir for delivery. These
Return Flows can provide up to an additional 1 ,600 acre-feet of water. Storage is available to these
entities in Pueblo Reservoir because they are in the SECWCD service area. This storage will help
provide water in the years when less than average water is provided by the Fry-Ark Project. The
water will be provided strictly for municipal and industrial purposes. Final chlorination or treatment
will be left up to each water provider. The conduit is currently planned to be paid 80%
(approximately $240 million) by the federal government.

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