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$10,318,000 and an annual salinity reduction of about 12.2 mg/L at Imperial Dam. The annual equivalent cost is the annual value of the capital investment amortized over the estimated 50-year life of the development at an interest rate of 7-3/8 percent. The capital investment includes construction costs and interest during construction at 7-3/8 percent interest over a 9-year construction period. Annual OM&R costs and the cost of investigations made prior to authorization of the unit are not included since they have been incurred and would have no bearing on the decision to undertake construction. The cost per mg/L of salinity reduction resulting from development of the Lower Gunnison Basin Unit is shown below: Capital investment Construction costs Interest during construction Less prior investigation costs Total Annual equivalent costs Salinity reduction at Imperial Dam (mg/L) Annual cost per mg/L of salinity reduction at Imperial Dam $136,700,000 1,680,000 -2,460,000 135,920,000 10,318,000 12.2 $846,000 The Colorado River Basin Salinity Control Act provided that 75 percent of the total costs of construction for the four authorized units would be nonreimbursable. The remaining 25 percent would be reimbursable and would be allocated between the Lower Colorado River Basin Development Fund and the Upper Colorado River Basin Fund, with no more than 15 percent of the reimbursable costs allocated to the Upper Basin Fund. The reimbursable development costs would be repaid without interest within a 50-year period after the developent becomes operational. While present studies have been predicated on a similar repayment plan for the Lower Gunnison River Basin Unit, final repayment criteria would be determined as part of legislation authorizing the unit. 001032 22