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Ridgway Reservoir Micro-Hydro Project Loan Feasibility <br />Page 17 of 42 <br />The District is proposing to borrow $lOM from CWCB to support project construction. <br />The District also plans to borrow $2,000,000 from CWRPDA at an interest rate of 2°Io for a term <br />of twenty years (see attached letter from CWRPDA). CWRPDA holds Board meetings roughly <br />six times annually to approve loan applications and so will be able to approve a loan to Tri- <br />County Water in 2011. <br />The District has also received notification from the Colorado Governor's Energy Office (GEO) <br />approving an allocation of $6.SM of Qualified Energy Conservation Bonds (QECBs) to support <br />the project (see attached letter from the GEO). This enables the District to issue low-interest <br />debt (e.g. ranging from 1-3°Io) to finance project construction. The ultimate need for QECB <br />financing will depend in part upon the final estimated construction cost of the project. <br />Tri-County Water has ample financial resources available to finance construction expenses in <br />order to meet minimum equity investment and debt coverage requirements of the lenders. See <br />below for a recent portfolio summary of Tri-County Water's capital reserves, showing <br />approximately $11M available. <br />The exact combination of funds used to complete construction of the project will be decided <br />pending finalization of the engineering design and associated construction costs and revenue <br />assumptions, which may vary from the construction cost estimates noted above. <br />