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<br />~ <br /> <br />. <br /> <br />J. Summary <br /> <br />This report presents the results of a review by Reclamation to identify and <br />document the specific facts and activities that led to a significant increase in the <br />estimated cost to construct the Animas-La Plata Project (Project). It specifically <br />provides a review of the costs associated with the Project to determine why the <br />construction cost estimate increased from $337.9 million in 1999 to $500 million <br />in 2003. The report provides the basis for the. development and implementation <br />of changes in the manner in which Reclamation manages the construction of the <br />Animas-La Plata Project. <br /> <br />The next phase of Reclamation's review will use these findings to develop and <br />implement a plan of action that will prevent similar events from happening in the <br />future and, where possible, lead to a reduction in Project construction costs during <br />the remainder of the construction period. The conclusion of this report includes a <br />brief description ofthe initial steps Reclamation is taking as a result of this <br />review. <br /> <br />. <br /> <br />The review was conducted by the Bureau of Reclamation at the direction of the <br />Secretary of the Interior. Reviews of technical and administrative data related to <br />the Project, discussions with Reclamation staff involved in program and <br />construction management, and meetings with project sponsors were used to <br />prepare this report. <br /> <br />A chronological history of the Project starting from its conceptualization in 1956 <br />is provided in Appendix 1. This history highlights k.ey)egislative, legal, <br />environmental, political, and administrative activities that have occurred since the <br />Project was first envisioned. <br /> <br />The Project scope has changed numerous times over this period. The Project <br />under construction is generally smaller than the project authorized in 1968. It <br />includes four key structural features: the Durango Pumping Plant; Ridges Basin <br />Inlet Conduit; Ridges Basin Darn; and Navajo Nation Municipal Pipeline <br />(reference Project Map). It also requires the relocation of parts of a county road. <br />and natural gas pipelines. The Project's primary purpose today is to divert, pump, <br />store, and convey water from the Animas River at Durango, Colorado, to provide <br />an assured supply of water for both Indian and non-Indian, municipal and <br />industrial (M&I) uses in Colorado and New Mexico. <br /> <br />In general, the review shows that, except for the RidgesBasin Dam feature, the <br />1999 ProJecf corisfrUcticin cost estimafewas incomplefe an<ririaccurate '(cir'tll.e <br />pumping plant, inlet conduit, gas pipelines and road relocations, and the then <br />newly added Navajo Nation Municipal Pipeline, and failed to include certain <br /> <br />I <br />