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~ ~ to ..-j CHAPTER IV EAST RIVER UNrr Construction cost Less investigation costs Interest during construction Total Operation, maintenance, and replacement costs Share of Colorado River Stor- age Project costs Total Total cost $2,712,000 -101,000 215,000 2,826,000 Average annual cost $156,200 18,500 2,000 176,700 Benefit-cost ratio Benefits of the East River Unit compare with the costs of development in a ratio of 1.43 to 1. Financial Analysis Cost allocations Under assWllptions of Federal development of the East River Unit as a participating project of the Colorado River Storage Project, costs would be allocated to the various purposes by the separable costs-remaining benefit method. The costs allocated would include construction costs, interest during construction at 5t percent, and annual operation, mainte- nance, and replacement costs. The allocations are summarized below. Cost allocation Item Municipal and domestic water Recreation and fish Total Y Excludes investigation Constru~t;ion costsV 1,722,000 889,000 2,611 000 costs of $101,000 Interest during construction (51. percent 1 ,000 71,000 215,000 Annual operation, maintenance, and replace- ment costs 11,500 7,000 18,500 Reimbursability of costs Repayment would be required of all costs allocated to municipal and domestic use. Costs allocated to recreation and fish and wildlife would be nonreimbursable since Cement Creek Reservoir where the benefits would be realized would be in the Gunnison National Forest. Costs to be repaid and those that would be nonreimbursable are shown in the following table. As a basis for the repayment analysis, reimbursable costs of interest during construction have been computed at an interest rate of 3.649 per- cent. 31