Cost Remains Flat, Design Innovations Can Save Another $1.2B
The DCA has prepared an updated cost estimate for the Delta Conveyance Project. The cost of the project is estimated to be $20.1B in real 2023 (undiscounted) dollars. A preliminary cost assessment conducted in 2020, early in the design process, estimated the project at $16B. Accounting for inflation to 2023 dollars, the two estimates are similar in cost. The DCA conducted a preliminary value engineering exercise to identify design and construction innovations that present opportunities to cut costs, save time, and reduce risks. These engineering innovations, while not representing changes to the approved project description, do show that there is genuine potential for a significant cost reduction of about $1.2 billion even at this early stage of project development. Find the Cost Estimate here.
“Our member agencies are paying for this project, and they have a fiduciary responsibility to their ratepayers to ensure the project is built on time and budget with the highest industry standards for safety, quality and risk management.” —Graham Bradner, DCA Executive Director
The Department of Water Resources (DWR) released a benefit-cost analysis for the Delta Conveyance Project. The Benefit-cost analysis is a systematic method to evaluate the economic viability of a proposed project by estimating the present value of a project’s expected future benefits and costs relative to a no-project alternative. Find DWR’s Benefit Cost Analysis here.
Find the Brochure detailing the facts about the economic value of the Delta Conveyance Project here.