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<br />. <br /> <br />. <br /> <br />,e <br /> <br />002344 <br /> <br />CHAPTER III <br /> <br />PROJECT DEVELOPMENT <br />(Juniper unit) <br /> <br />the water users would be able to pay ~15,989,000 toward construction <br />costs in a 50-year period or about 21 percent of the total costs of <br />~74,902,000. If the project were authorized, the remaining portion of <br />the construction cost U158,913,000) would be required from the Upper <br />Colorado River Basin Fund. The water u~ers would require a development <br />period of 5 years after the first delivery of unit water and before the <br />assessment of construction charges. <br /> <br />Benefit-cost analysis <br /> <br />Irrigation benefits from the Juniper unit would amount to about <br />$4,190,800 annually. Of the total value approximately ~2,l93!800 would <br />represent direct benefits, ~l,027,900 indirect benefits, and ~969,100 <br />public benefits. <br /> <br />Average annual equivalent costs would amount to about ;;:2,986,400. <br />The derivation of these costs is shown in the tabulation below. <br /> <br />Ite1!! <br />Construction cost <br />Interest during con- <br />struction <br />Less present worth of <br />terminal salvage <br />value <br />Net capital investment <br />Operation, maintenance, <br />and replacement costs <br />Assigned cost of Colorado <br />River Storage project <br />Total <br /> <br />Total <br />;;;74,902,000 <br /> <br />Average <br />annual <br />value <br /> <br />3,709,000 <br /> <br />55.000 <br />78,556,000 <br /> <br />$2,145,400 <br /> <br />276,400 <br /> <br />564.600 <br />2,986,400 <br /> <br />Irrigation benefits of the Juniper unit would compare with the <br />average annual equivalent costs in a ratio of about 1.4 to 1. The net <br />benefits (benefits in excess of costs) would amount to ~1,204,4oo annually. <br /> <br />Plan selection and alternatives <br /> <br />The major alternative plan for the Juniper unit provides for regula- <br />tion of surplus flows of the l~te River at the potential Buford Reser- <br />voir site and conveyance of water along the north side of the river to <br />the unit area. The plan would be considerably less attractive than the <br />plan appraised in the preceding paragraphs. It would provide water for <br />only about 75,000 acres compared with about 100,000 acres in the plan <br />previously appraised. Comparable conveyance systems and storage regula- <br />tion would be required, however, and the costs would be approximately <br />the same. <br /> <br />47 <br />