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Show Chapter 4 Economics and Financing of Projects The approved plan of the Corps of Engineers for the basin provides for 39 additional projects. Four of these are multiple-purpose projects. Leesburg, Patlay, and Fort William Shoals Reservoirs would be constructed for power and navigation. Gilmer Reservoir would be operated for power and flood control. Nineteen reservoirs are for power only; four of these are for power storage and would have no generating plant at the site. Ten projects in- volve alterations of or additions to existing or au- thorized improvements. Five of these provide for navigation and power while the remaining five would increase the power generating facilities at existing plants. As detailed planning is undertaken in the future for later-stage reservoirs under the basin-wide plan, which is flexible, presently en- visioned single-purpose units can and will be changed to serve multiple-purpose uses as condi- tions warrant. Of six channel improvement proj- ects, five are for flood control and one is for navigation. Although Federal participation in developing the Alabama-Coosa River began in 1876,1 the Federal water program in this basin has been relatively small. Five projects are completed and in opera- tion; 5 more are authorized and are in the initial stage of development; and 29 additional projects have been approved to complete the plan now envisioned by the Corps of Engineers. The pur- poses for which costs and benefits are estimated to determine project justification are navigation, flood control, and power. It is not possible to analyze estimated costs and benefits with respect to each 1 Construction of three low dams with locks on the Coosa River below Gadsden was authorized in 1876. separate purpose, since most projects contemplated are multiple-purpose and costs have not been allo- cated to the various uses. Estimates of certain anticipated benefits have not yet been completed. Projects Completed or in Operation Of the water resources projects completed, three provide local flood protection for urban areas and one is a channel-clearing and snagging project de- signed to ameliorate lesser floods. Total estimated cost of these four projects is $1,257,900, of which $1,138,000 is Federal and $119,900 is non-Federal. cost. Annual carrying charges are estimated at $54,400-$44,300 Federal and $10,100 non- Federal-with estimated annual benefits of $76,- 000. In a comparison of preconstruction and post- construction economic evaluations of the three local flood protection projects, the Corps of Engi- neers concludes that the works have more than met their annual carrying charges, have fulfilled their intended purpose, and have confirmed their eco- nomic justification. No firm estimate of the bene- fits produced by the channel clearing project is practicable. Allatoona Dam has just been completed at a total cost of about 33.4 million dollars, including interest during construction. All costs were Fed- eral. The Corps of Engineers has allocated 26.5 million dollars or 79 percent to power and 6.9 mil- lion dollars to flood control. It is anticipated that the power investment will eventually be repaid from power revenues. Estimated annual carrying charges of $1,565,000 are also entirely Federal. To- tal estimated annual benefits of the project are $2,274,000 of which $1,952,000 is attributable to power and $322,000 to flood control. The latter 543 |