dc.description.abstract | Initial construction costs and net annual changes in operating and maintenance expenses
are identified for a single-component capital renovation project proposed by Hidalgo County
Irrigation District No. 2, (a.k.a. San Juan) to the North American Development Bank (NADBank)
and Bureau of Reclamation. The proposed project involves relining “Lateral A” with a
geomembrane and shotcrete cover. Both nominal and real estimates of water and energy savings
and expected economic and financial costs of those savings are identified throughout the
anticipated useful life for the proposed project. Sensitivity results for both the cost of water
savings and cost of energy savings are presented for several important parameters.
Annual water and energy savings forthcoming from the total project are estimated, using
amortization procedures, to be 2,542 ac-ft of water per year and 551,738,646 BTUs (161,705
kwh) of energy per year. The calculated economic and financial cost of water savings is
estimated to be $74.49 per ac-ft. The calculated economic and financial cost of energy savings
is estimated to be $0.0003698 per BTU ($1.262 per kwh).
In addition, expected real (vs nominal) values are indicated for the Bureau of
Reclamation’s three principal evaluation measures specified in the United States Public Law
106-576 legislation. The initial construction cost per ac-ft of water savings measure is $57.76
per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings
measure is $0.0002661 per BTU ($0.908 per kwh). The ratio of initial construction costs per
dollar of total annual economic savings is estimated to be -14.29. | en |