FINANCING FEDERAL WATER DEVELOPEMNT PROJECTS AND SHARING THE COSTS1

ABSTRACT: The Federal Government's interest and involvement in water resource development in discussed in the context of project financing and cost sharing. After drawing a clear distinction between the two issues - who puts up the money, and who repays over time - the authors survey a number of Federal acts from which have evolved nearly 200 separate cost-sharing rules. Selected cost sharing and financing issues discussed include consistency in policies, rehabilitation of urban water supply systems, multipurpose water quality projects, and ground water management. Two proposals for cost/finance sharing reform introduced in the 96th Congress are discussed in detail and their impacts compared with current policy. The joint venture approach (Administration proposal) results in an effective composite cost share which changes significantly but not drastically (from 19 to 35 percent non-Federal share for a hypothetical project). The block grant approach (Domenici-Moynihan proposal) would alter the regional distribution of Federal water developement funding from the South and West to the Northwest and North Central States.     

A MODEL FOR ACHIEVING CONSISTENCY FOR COST SHARING IN WATER RESOURCE PROGRAMS1

ABSTRACT: Three basic principles of responsibility have influenced the Federal/non-Federal cost sharing rates for water resources programs (1) full payment by beneficiaries (2) exclusive Federal assumption of costs and (3) joint Federal/non-Federal sharing. The efforts to determine appropriate cost sharing rates have resulted in several hundred complex arrangements involving contributions, user charges and direct sales based on many variations of payment terms. This basic present value model was developed to determine the non-Federal cost shares which are expected to be paid for 32 different functional purposes emanating from Federal water resources programs and projects for both implementation and OMR stages. The model introduces the concept of a composite (implementation plus OMR) cost share as a focus developing appropriate cost sharing rates for the private, public and mixed outputs produced through public water resources investments. The model can be used as a focus for policy decisions on cost sharing which seek to achieve consistent and equitable cost shares for purposes provided while maintaining an efficient allocation of resources within water programs.     

THEORY AND REALITY IN ALLOCATING FEDERAL RESOURCES TO WATER RESOURCES DEVELOPMENT1

ABSTRACT: Federal spending on water resource development projects exceeds $10 billion annually. This paper examines the economic theory and practice on which the Federal water resource development plans are based. Existing theoretical and applied problems result in overinvestment. These include 1) no standard of value for the tradeoff of environmental objectives with economic objectives; 2) benefits based on “willingness to pay,” but beneficiaries pay only a fraction of a project's costs; 3) beneficiaries “shop around” among program purposes in order to reduce their commitments; and 4) benefit/cost (B/C) analyses are based on a discount rate, which is consistently below the Federal borrowing rate. Furthermore, the Government Accounting Office (GAO) frequently finds that the agency regulations are inadequate and result in inconsistent and questionable benefit computations. The President has proposed a series of water policy reforms, to reduce some of the apparent overinvestment in water resource development, but fundmental corrective action rests with the members of Congress.     

Benefit‐Cost Analysis of Integrated Water Resource Management: Accounting for Interdependence in the Yakima Basin Integrated Plan

Integrated water resource management (IWRM) requires accounting for many interrelated facets of water systems, water uses and stakeholders, and water management activities. The consequence is that project analysis must account for the nonseparability among the component parts of IWRM plans. This article presents a benefit‐cost (B‐C) analysis of a set of projects included in the Yakima Basin Integrated Plan proposed for the Yakima Basin in south‐central Washington State. The analysis accounts for interdependence among proposed water storage projects and between water storage and water market development in the context of historical and more adverse projected future climate scenarios. Focusing on irrigation benefits from storage, we show that the value of a given proposed storage project is lower when other proposed storage projects in the basin are implemented, and when water markets are functioning effectively. We find that none of the water storage projects satisfy a B‐C criterion, and that assuring proposed instream flow augmentation is less expensive by purchasing senior diversion rights than relying on new storage to provide it.     

ECONOMICS AND FEDERAL WATER PROJECTS1

While the science of economics is widely used in Federal water resource development projects, the usual procedure of applying an analytical discipline to arrive at a conclusion is reversed. The “answer” is usually provided ahead of time and economics is assigned the task of justifying the preconceived conclusion. This leads to a series of mitigatory effects in which economics as a science is not allowed to freely function. This article attempts to illustrate some of these “unusual” uses of economics in Federal water projects and note the “answers” we would logically expect from the economic discipline. Even though the theory of economics is often subverted, there are positive aspects to the role of economics in evaluating Federal water projects.     

WATER QUALITY ALLOCATED COST FOR MULTIPURPOSE RESERVOIRS1

ABSTRACT: Low flow augmentation from multipurpose reservoirs may yield significant water quality benefits. Cost allocation assigns a portion of reservoir expense to water quality consumers, waste water dischargers who benefit from increased receiving flow. Whereas such allocation currently is not authorized for Federal projects, the procedure is increasingly appropriate for efficient multiobjective management. Waste water treatment costs, multipurpose reservoir costs, and water quality are modeled for Oregon's Willamette River. Water quality is expressed as a function of treatment and augmentation levels. Treatment cost necessary to achieve a given water quality without augmentation less treatment cost with augmentation is an alternative cost of water quality maintenance. With a cost allocation procedure, this alternative cost is used to determine water quality's share of reservoir cost. Under current conditions, water quality beneficiaries could be charged approximately seven percent of annualized reservoir expense. This charge is one-fourth the expense of additional treatment facilities required were augmentation not provided.     

MULTISOURCE/MULTIQUALITY AGRICULTURAL WATER USE DECISIONMAKING1

ABSTRACT: The importation of water into an existing irrigated agricultural area raises many questions about farm profitability and suggests many adjustment alternatives open to farmers. In particular, how will farmers respond to a new additional water source of differing cost, availability, and quality? Mathematical programming models of representative irrigated farms in Pinal County, Arizona, were developed to project agricultural adjustments to new water from the Central Arizona Project now under construction. The techniques developed have broad application to similar water resource projects involving the conjunctive use of multiple water sources of differing qualities. Regional agricultural activities are described by defining and modeling multiple representative farms which account for economies due to size and different water sources of differing price and quality. Various management schemes can be evaluated by properly selected representative farm models.     

COST SHARING AND IMPLEMENTATION OF NATIONAL WATER RESOURCES POLICY1

ABSTRACT: In this article a managerial approach to developing and implementing National Water Resources policy is suggested. Proper consideration can be given to national economic development (NED), environmental quality (EQ) and conservation and still result in an implementable policy at the operational level if proper incentives are built into the process with proper attention to alternate non-Federal cost sharing rates. Not only can these multiple objectives be entertained but the Administration and Congress will have a management tool that should ensure a certain probability of success.     

AN ECONOMIC ASSESSMENT OF GROUND WATER RECHARGE IN THE TUCSON BASIN1

ABSTRACT: Bringing water from Colorado River via the Central Arizona Project was perceived as the sole solution for Tucson Basin's water problem. Soon after Central Arizona Project's water arrived in Tucson in 1992, its quality provoked a quarrel over its use for potable purposes. A significant outcome of that quarrel was the enactment of the 1995 Proposition 200. The Proposition 200 precludes the use of Central Arizona Project's water for potable purposes, unless it is treated. Yet, it encourages using it for non‐potable purposes and for replenishing the Tucson aquifer through recharge. This paper examines the economic issues involved in utilizing Central Arizona Project's water for recharge. Four planning scenarios were designed to measure and compare the costs and benefits with and without Central Arizona Project's water recharge. Cost‐benefit analysis was utilized to measure recharge costs and benefits and to derive a rough estimate of cost savings from preventing land subsidence. The results indicate that the institutional requirements can be met with Central Arizona Project's water recharge. The economic benefits from reducing pumping cost and saving groundwater are not economically significant. Yet, when combining the use of Central Arizona Project's water for recharge and non‐potable purposes, it demonstrates positive net economic benefits.     

TECHNICAL CLARITY IN INTER-AGENCY NEGOTIATIONS: LESSONS FROM FOUR HYDROPOWER PROJECTS1

ABSTRACT: We investigated the effect of technical clarity on success in multi-party negotiations in the Federal Energy Regulatory Commission (FERC) licensing process. Technical clarity is the shared understanding of dimensions such as the geographic extent of the project, range of flows to be considered, important species and life stages, and variety of water uses considered. The results of four hydropower licensing consultations are reported. Key participants were interviewed to ascertain the level of technical clarity present during the consultations and the degree to which the consultations were successful. Technical clarity appears to be a prerequisite for successful outcomes. Factors that enhance technical clarity include simple project design, new rather than existing projects, precise definition of issues, a sense of urgency to reach agreement, a sense of fairness among participants, and consistency in participation. Negotiators should not neglect the critical pre-negotiation steps of defining technical issues and determining appropriate studies, deciding how to interpret studies, and agreeing on responses to study results.     

关于世行贷款农业灌溉项目环境影响评价问题的讨论

农业灌溉工程建设是我国第十二个五年规划纲要中提出的全面加强农田水利建设工作的重要组成部分。随着越来越多农业灌溉项目的兴建及我国环境影响评价制度的发展,农业灌溉项目的环境影响评价也在不断发展和完善中。本文根据世行贷款项目——中国四川武都农业灌溉项目环境影响评价实践和工作经验,分析总结了世界银行及我国在农业灌溉项目环境影响评价工作方面的特点和要求,其中世界银行在有些方面,如评价等级、公众参与等与国内环评要求基本一致,而有些方面,如回顾性评价、替代方案分析、累积性影响分析、环境管理计划、移民安置行动计划、病虫害管理计划等在国内环境影响评价中尚未引起足够的关注或与世界银行要求存在较大差异,值得我国环评工作参考和借鉴。     

生态环境重大工程项目全过程管理体系评价与对策

生态环境重大工程是实施国家中长期规划、具有中国特色的一项制度安排。本研究通过梳理我国重大生态环境工程项目管理现状,包括制度建设、工程标准体系建设、绩效管理体系建设等,结合“十四五”生态环境保护形势和任务要求,分析当前我国在生态环境工程项目管理体系建设上存在的主要问题。在此基础上,构建出我国重大生态环境项目组织管理的框架和路线图,提出“十四五”加强和提升我国重大生态环境保护项目全过程管理的对策与建议。     

水资源开发利用与城市水环境建设问题对策初探

本文以科学发展观回顾以往水资源利用与城市水环境建设的实践,并以成都市水环境为例,发现包括上游河流水资源过度开发使下游河流生态受破坏;城市内水环境建设过多地填埋与覆盖原有水系河道造成城区缺水与污染隐患;城市上游优质水资源浪费;城市污水处理厂布局不合理,过多的集中在下游排放使纳污河生态环境严重破坏等问题,提出了一些研究项目与对策建议.     

COMPUTER ASSISTED NEGOTIATION OF MULTIOBJECTIVE WATER RESOURCES CONFLICTS1

ABSTRACT: Since the early 1970s, a large volume of literature has accumulated related to multiobjective water resources management problems. A relatively small portion of this specifically addresses the negotiation process required when there are multiple decision makers with conflicting objectives. This paper focuses on that process and describes a computer program designed to assist such negotiation processes. This interactive computer assisted negotiation support system is called ICANS. ICANS is designed for dynamic, multi-issue, multi-party negotiation problems. Based on information provided in confidence by each party via an interactive graphical interface, the program can help determine if there exist any possible alternatives that are equivalent or even preferred to each party's decision in the absence of a negotiated agreement. If such alternatives exist, through a series of iterations in which each party's input data, assumptions, and preferences may change, ICANS can assist the parties in their search for a mutually acceptable and preferred agreement. A simple example illustrates the data requirements and the use of ICANS in negotiation experiments.     

DBO模式在污水处理行业的应用研究

DBO模式是PPP模式之一,在国家大力推进PPP模式之际,尝试开展DBO模式在污水处理行业的应用研究,分析污水处理行业发展趋势与问题,DBO模式在污水处理行业应用的适用领域与适用条件、优点,提出DBO模式在污水处理行业的推行路径,希望通过DBO模式解决污水处理行业的问题,促进行业健康发展。本文认为,城镇、乡镇与村庄生活污水处理、工业企业废水治理等领域具有项目设计与建设非标准化、项目需求明确、责任边界清晰、项目运营服务质量和成本容易监测等特点,应用DBO模式具有可行性。这些领域内的项目若有可靠的建设资金来源、稳定的运行费用保障机制、急于改善的区域水环境质量及严格的环保设施运行需求,适合采用DBO模式。DBO模式可以提高这些项目的建设质量和运营质量,节约成本,缩短建设周期,提高抗风险能力。同时,在行业层面,能够解决这些领域面临的项目设计不合理、建设质量不高、运行费用高、运行管理不善、闲置等诸多问题,可以促进先进实用技术和管理经验的应用,提高行业技术和运营管理水平的整体进步。因此,建议政府从开展实施试点、制定行业规范、加大宣传和推广、颁布政策文件等方面大力推进DBO模式在污水处理行业的应用。     

Water supply policies and issues in developing countries

The significant progress made during the UN International Water Decade is reviewed, eight years after its inception in 1981. Major issues remain, especially in rural areas. The advantages of an integrated water resource planning framework (IWRP) are explained, including the use of this process to develop a flexible strategy for the water and sewerage sector to meet national policy objectives. Economic efficiency in supply implies optimal service quality and least cost planning, while efficient pricing policy requires the implementation of long-run marginal cost based tariffs. Better sector organization, management, accountability, options for decentralization and innovative financing methods are also discussed.     

INTEGRATING SOCIAL BENEFIT COST ACCOUNTING INTO WATERSHED RESTORATION AND PROTECTION PROGRAMS1

ABSTRACT: Successful watershed management requires consideration of multiple objectives and the efficient use of scarce public and private resources. One way to address these multi-faceted issues is through Social Benefit-Cost Accounting (SBCA). SBCA is a systematic method of addressing complex social and economic issues relevant to proposed watershed management projects. Benefits of using this technique include: benefits and costs of watershed projects are better understood; politically sensitive issues tend to be put into perspective; and stakeholders' interests are placed on a level playing field. An example from Bogota, Colombia demonstrates how SBCA can be used to value the benefits and costs of a proposed project. By addressing the benefits and costs to all stakeholders, the design of watershed management programs can be improved to achieve goals in a cost-effective manner.     

IRRIGATION PLANNING BASED ON WATER DEFICITS1

ABSTRACT: The deliberate underwatering of a larger land area, as practiced in Southern Asia, has provided impetus for a systematic investigation into the effects of designing projects for crop water deficits on Benefit-Cost performance. The study began with the derivation, from published experimental results, of functions relating ultimate crop yield to the magnitude and timing of water deficits, i.e., of the productivity of irrigation water. To obtain the net benefit of the project, the relation between the harvested area and output and the on-farm production costs was then suggested. The cost of supplying the irrigation water to the proposed area and of distributing and applying it to the field was determined, thus completing the Benefit-Cost equation. A computer simulation model was then established to search for the irrigation project design capacity and area to maximize the net present value in the Benefit-Cost analysis for the development proposed.     

VALIDATION OF POLITICAL SIMULATION MODELS -WATER RESOURCE PROJECTS1

ABSTRACT. The critical role of political processes in water resource projects has recently been placed in a new perspective [Hall, 1970]. The “political hassle” period of institutional interaction which serves to resolve political conflicts over such aspects as organizational growth and survival, responsibility for economic liabilities, and responsibility for economic benefits, requires systematic analysis in order to improve our capability to implement water projects. Failure to properly assess the political aspects of a proposed water project may result in extensive delays with significant economic losses. The complexities associated with water use and re-use have created the need for new institutional arrangements which can more effectively function to implement policies and programs. One tool which has recently become available for the research investigator concerned with institutional interactions and political processes associated with water resource projects is the technique of computer simulation of such institutional interaction. In theory, this new approach will enable the investigator to assess the political feasibility or political acceptability of a proposed water project given existing institutional structures. Furthermore, the investigator has the opportunity to experiment with new and innovative institutional arrangements which may in turn enhance the political acceptability of a proposed project. The specific material presented within this paper reports upon the validation of an existing computer simulation model designed to replicate political interactions in resource allocation problems-including water resource problems. This validation effort is done by taking an actual water problem and comparing what the political simulation models predicts in terms of political outcomes with what actually takes place. The case study in question is the formulation and legislative development of the Michigan Bond Issue for Water Pollution Control.     

INCOME DISTRIBUTION IMPACTS OF A WATER DEVELOPMENT PROJECT - BOISE PROJECT,IDAHO, 1950–19701

ABSTRACT: Public investments in water resource development projects are continually under scrutiny in terms of economic, environmental, and social impacts. Results of an analysis of a water development project that supplies irrigation water in Idaho are discussed in terms of the impact on income distribution and income growth 44 to 64 years after the project was initiated. Gini ratios for the rural farm population of these counties were consistently lower than they were for the United States as a whole and for the state of Idaho. In addition, income distributions tended to become more equitable over time in the water project counties. Rural farm population income growth rates were found to be similar to those for the nation as a whole. Some of the reasons for these results may be related to the tendency for income distribution to become more equitable as income increases, and the fact that average farm size is relatively small.