Review of Delta Conveyance Project Benefit-Cost Analysis: Implications for Decision-Makers and Financing

The Center for Business and Policy Research (CBPR) completed a review of the Delta Conveyance Project (DCP) Benefit-Cost Analysis (BCA). The review critically examines the DCP’s financial and economic feasibility. The first section of the review provides background and context for the DCP BCA. The second section examines assumptions about project lifespan and discount rates. The third section analyzes the valuation of benefits, particularly water supply benefits. The fourth section discusses omitted environmental costs. The fifth section addresses major project risks not considered in the sensitivity analysis. The final section explores other considerations related to financial plans and comparative costs. The review concludes that the DCP’s positive benefit-cost ratio is based on flawed assumptions and methodology, calling into question the economic justification for the project.

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