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<br />0223 <br /> <br />. <br /> <br />la. Cost-Benefit Ratio - Interest and Extensions <br /> <br />. <br /> <br />The Bureau of Reclamation has a tendency to exaggerate the recrea- <br /> <br />tional. irrigation, and flood control benefits of their projects. <br />For instance, the Bureau of Reclamation uses the method of "double <br /> <br /> <br />counting" the recreational man-hour days and dollars of projects. In <br /> <br /> <br />many cases the Bureau of Reclamation systematically underestimates the <br /> <br /> <br />value of recreation benefits which already exist without their projects. <br /> <br /> <br />Irrigation benefits are derived in much the same way. The flood <br /> <br /> <br />control benefits of the Narrows must be re-evaluated. Actually, the <br /> <br /> <br />flood control benefits of the Narrows are minimal. The Bijou Creek will <br /> <br /> <br />not be controlled by Narrows and is the one tributary that by and large <br /> <br /> <br />causes the most damage in the Lower South Platte River Basin. <br /> <br /> <br />Upstream flood control above Denver and other metropolitan areas <br /> <br /> <br />has been largely controlled on the South Platte River; and when the need <br /> <br /> <br />arises, there will be other flood control projects constructed upstream <br /> <br /> <br />whether the Narrows Dam is constructed or not. <br /> <br /> <br />It would appear that the flood control benefits of the Narrows must <br /> <br /> <br />be greatly reduced and the cost-benefit ratio brought far downward to a <br /> <br /> <br />more realistic figure. <br /> <br /> <br />One of the many interesting questions is what interest rate will <br /> <br /> <br />have to be figured for the Narrows Project - the low rate of )-1/4% or <br /> <br /> <br />the newer rate of 7-1/8%. <br /> <br /> <br />We also wonder how the Bureau of Reclamation continues to get exten- <br /> <br /> <br />sions on the Narrows Project when the deadline is past. A complete re- <br /> <br /> <br />evaluation with the resultant re-authorization must be considered. <br /> <br />. <br />