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Show Are the Projects in Fact Being Used Economically? With few exceptions, projects reviewed are being oper- ated at costs within the range anticipated, taking into account the general increase in wages and price level, and in no instance have costs become so large in relation to benefits or returns as to make project operation uneco- nomical. Relative economy in operation undoubtedly varies from project to project, but peculiarities affecting costs on individual projects obscure the comparative de- gree of economy. Experience has repeatedly indicated that where a re- sponsible, directly interested local agency is available, such as an irrigation, drainage, or levee district, or a municipality, to operate local flood protection works, fed- erally constructed works can be more economically oper- ated by such an organization than by the Federal Government. Although such local operation and mainte- nance are desirable, care must be exercised to make certain that minimum standards are met. There is evidence, in many cases, that some of the apparent economy effected by local operation has been because of continued and unwise deferred maintenance, which has hastened the need for project rehabilitation and has actually increased the total annual cost of the project. When works are turned over to local agencies which do not have adequate technical staffs, arrangements should be made for periodic inspections and reports by agencies and organizations with such staffs. Such arrangements have been made in a number of cases and appear to be working satisfactorily. The mine sealing program to ameliorate the acid mine waste problem in the Ohio River Basin, operating as a relief measure during the 1930's, promised worth while benefits but failed in general due to inadequate mainte- nance. The Extent to Which Original Estimates of Benefits and Costs Have Been Realized In general costs have been higher than originally an- ticipated, due to the generally upward trend in construc- tion cost, initiation of urgent construction before detailed explorations and plans were completed (as in the case of Bonneville Dam), and construction during the war period when both material and labor shortages existed. Al- though formal estimates of benefits were not made in many instances (repayment rather than benefits has been the criteria in evaluating irrigation and some other Federal developments), the data available indicate that in most cases the benefits actually realized have surpassed those anticipated to an even greater degree than the actual costs have exceeded the estimated costs. Increased values of lands protected from flood and increased value of agri- cultural products, and accelerated development of project areas help account for the large benefits in addition to those evaluated. Conservative estimates of other benefits, notably recreation and pollution abatement, have been greatly exceeded. In a few instances, anticipated benefits from private projects were not realized initially because the projects could not safely be operated as designed due to structural defects. Such defects, however, were later corrected and the projects are now operating as an- ticipated. Attainment of the full benefits estimated for some flood- control developments has not yet materialized because the higher floods against which they afford protection have not yet occurred. For example, the annual benefit-cost ratio realized for the local flood-protection project at Huntington, W. Va. (in only 8 years of operation) is 3:1, whereas the ultimate to be achieved is estimated at 5:1. Similarly, although amply justifying themselves in- dividually, some flood-control reservoirs designed as parts of a system (as in the case of the Cottage Grove Dam and Reservoir, which is a part of the system of reservoir planned for flood protection and other purposes in the Willamette Valley) will not realize their anticipated full potential until the system is complete (2+:l now rather than 4.5:1 at Cottage Grove). Certain benefits have been received beyond those con- templated, many that were not considered at all at the time the projects were authorized or constructed. Thus the pollution-abatement benefits that have been realized from the Tygart Reservoir are about 40 times that origi- nally contemplated. All such benefits need particular at- tention as indicating possibilities in future projects. In some there may be the opportunity to enhance these possibilities. Recreation is becoming an important aspect of many water resources developments. The types of recreation are quite varied. A large body of water attracts many varied types of recreation, such as boating, fishing, swim- ming, water polo, or scenery enjoyment. Such reservoirs as the Cottage Grove in Oregon, where high recreational use has developed in an area with many natural lakes and streams, and the Tionesta Reservoir in Pennsylvania, where more than 100,000 people visited the recreation area in 1 year, are examples. There were about 1,600,000 visitors recorded at the Lake Mead recreational area at Hoover Dam in 1948. In some instances the utilization of power storage in reservoirs is limited at certain times during the year in the interest of recreation. An example is the Lake Chelan water power project in the State of Washington. The bass fishing in Lake Mead provides an outstanding recreational sport in an area where bass fishing was not known previously. Also, the clear water in the Colorado River flowing from Lake Mead provides an excellent habitat for trout, a species that could not exist prior to the construction of the dam on account of the heavy load of sediment carried. Ducks and geese are found in increas- ing numbers in the Tennessee Valley since the develop- ment of the TVA program. What Effect Have Unanticipated Physical, Economic, or Political Conditions Had on the Results Obtained? Studies of a considerable number of completed projects reveal that unanticipated conditions have had an effect upon them. In general, these conditions have been more beneficial to the projects than otherwise. In the past quarter century, economic conditions generally have been such as to provide greater benefits than were anticipated when the projects were constructed. The population has greatly increased especially in industrial and urban areas; needs for power, domestic water, navigation, and pro- 405 |
