PROJ00259

• Contract/PO #: C153424
• Contractor Name: Colorado River Water Conservation District
• Water District: 0
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Feasibility Study

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PLANNING
ASSUMPTIONS

MAXI MUM
WATER COST
$/ac-ft

EQUIVALENT MAXIMUM
CAPITAL COST
$/ac-ft

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Scenario A
Scenario B
Scenario C
Scenario D

130
175
200
Unlimited

1240
1670
1908
Unlimited

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The project selected for use as optimum project configurations are
presented in Table 1-3. Two alternative projects were
selected within each of the scenarios in order to allow a greater
range of opportunity for comparison and selection.

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H. Evaluation of Alternatives

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A financial analysis was prepared for the eight selected project
configurations. Two different financing scenarios were assumed. For
Scenario I half of the project capital costs would be funded by a
Colorado Water Conservation Board (CWCB) project loan at 5% interest
for 40 years and the remainder of the capital costs would be funded
through the issuance of bonds by the West Divide Water Conservation
District (WOWCD). A three year construction period was assumed for
all projects with 20% of the capital costs occurring in year I, 50% in
year 2, and 30% in year 3. An 8% interest rate was used for both
construction loans and bonds. There would be no interest during
construction for the CWCB loan portion of the costs.

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In financing Scenario 2, all of the capital costs would be funded
by a 5% loan for 40 years from the CWCB. There would be no interest
during the construction phase of the project. Annual operation and
maintenance (O&M) costs were calculated as 0.5% of total capital
costs in all cases.

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The results of the financial analysis are presented in Table 1-4
as annual costs by project configuration for both funding scenarios.

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I-IS

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