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1 8.0 PROJECT FUNDING <br />Funding for this Mexico /Nevada Water Exchange Project could come from a number of <br />sources. It could be financed in the conventional manner through a bond issue. Another <br />approach might be to have a consortium of private sector firms to build and operate the <br />desalting facility under a reimbursable cost contract. or under a water sales contract. The <br />method of funding will take form as the project is defined. Each component of the project <br />represents various opportunities and benefits for both Mexico and Nevada. Revenue generating <br />facilities may well attract private investors while the other facilities that benefit public health <br />and/or the environment are candidates of federal funding through financing by international <br />multilateral banking organizations. The net result of financial packaging should be that each <br />participating party will benefit far beyond their individual investment. The net cost of <br />additional water for Nevada should allow increased withdrawals from Lake Mead at a <br />competitive rate to other water resource alternatives currently under investigation. The benefit <br />to Mexico for developing a new water source. transmission and storage system, as well as, <br />Improvements to public health and the potential of developing extensive reuse systems, and a <br />new power source, greatly outweighs their potential portion of the project funding. At any rate, <br />the best method for financing the project will have to be determined through future detailed <br />studies. <br />1 9.0 PROJECT SCHEDULE <br />A project of this size and complexity requires detailed evaluation and development of legal, <br />environmental, political, financial and technical issues. This evaluation must be formatted and <br />completed in predetermined steps to meet the water demand needs in a timely and cost <br />Ieffective manner. <br />1 <br />1 14 Carollo Black & Veatch <br />