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Tri-County Water Conservancy Qistrict Agaida Item 20c September 2, 2011 (t7pdated Ssptsmber t9, 2611) Page 4 af i The initial study conducted by the Bureau canciuded that thc addition of a hydropower facility would have rninirnai impact on the local or regiona� environment. More recent evatuations sUpport that conclusion and anticipate environmental and bialogical impacts wouid be canfined ta the construction phase because the Project will be located within the area already disturbed by the dam, where sensitive habitats have nnt been observed. Anticipated environmental innpacts consist of noise, dust and minor soil erasion attributed to site excavation. Mitigation rneasures wili be implemen#ed in accordance with iocal and federal guidelines in an effort to minimize environmental impacts throughout construction. Foilowing construction, there are no lasting environmcntal impacts expected. The Project will be fundec! through a cambinatian of cash reserves from #he District, financing through the CWCB and Colorado Water Resources and Power Development .�uthority (CWRPDA), and Qualified Energy Canservation Bonds (QECB) throagh the Gaven�or's Energy 4ffiee (GEO). Fluctuatians in project variables, particularly materials and labor costs, have resulted in tatal cost estimates varying frorn $i3AM to nearly $18.2M. A total project cost estimate of $18,172,000 has been used in the financial analysis. A summary of proje�t costs is provided in Table 2. T Engineering Materiais/Construction Costs PROJECT Administrative/Permitting Expenses Contingency (2Q%) Total $1,082,Ofl0 $12,463,000 $1,627,OOQ � $3,000,000 $18,172,000 Project construction is scheduled to begin in Spring 2012, starting with the ordering of items that require long Iead times, such as the turbine/generatar equipment, butterfly valves and bifurcation iittings. It is estimated that the construction phase af the Project will take 2 years to complete, with energy production scheduled to commencs in 20i4. CWCB wili nnt disperse any funds unril atl Colorado Water Resources and Power Development Autharity funds have been fully expended. Following expenditure of CWRPDA funding, the CWCB will rsimbwse project costs at 94%, up to a project total of �9,0�4,000. Fi�anefat Analysis The Dismic# quali�es for the hydroelectric interest rate of 2.flQ°lo for a 30-year term. Table 3 provides a summary of the financial criteria of the loan request.