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<br />,~- I <br />:-1 <br /> <br />F~ the preceding ~terial it is evident that federal <br /> <br />gover~nt guidelines for the evaluation of benefits of water <br />projects have recognized the importance of such benefits as <br />reduced Uf1BIPloflllBnt in particular areas and EllllDng particular <br /> <br />groups. and regional econlRic growth and developlllent. <br /> <br />It is also evident that the area in which the proposed Animas- <br /> <br />La Plata Project is to be built is a depressed area. Construction <br /> <br />and operation of' the project loII]uld constitute a public sector invest- ;1 <br /> <br />-m; ....ich IoIOUld contribute to the ecol1Olllic growth and developlllent of <br /> <br /> <br />the region. Construction and operation of the project would also <br /> <br /> <br />provide a higher level of' aggregate de.and for output from within the <br /> <br /> <br />region and theref'ore increased .-ploflllBnt and higher incDAles. because <br /> <br /> <br />of' the local expenditures directly associated with the projec1:. <br /> <br /> <br />In order to provide a ..re appropriate D1easure of the benefits <br /> <br />;: <br /> <br />, <br />" <br /> <br />associated with the construction of the project another benefit <br />category. eCDf1lMlic developlBnt. should be established. Direct benefits .' <br /> <br />to be included within this category would include on-site construction <br />~.~itures on labor and on ~terlals obtained from the local area, <br /> <br /> <br />as llI811 as operation. maintenance, and replacSlllent expenditures made <br />f'or local area labor and materials. A complete accounting of the <br /> <br />:~':o\ <br />,;i <br /> <br />benefits of such expenditure on the regional economy would include <br />the .u1tiplier effect on final output, or the additional value <br />added as a result of the initial expenditure, which would be in <br /> <br />the neighborhood of 31 percent. <br /> <br />20 <br />