Financing

Finance for drinking water infrastructure

The proposed construction of a peripheral canal comes at considerable costs and the need for a cost-benefit analysis cannot be ignored. It is important to mention that a similar project had once been proposed but rejected by the voters. This move was however rejected by California voters at a time when the costs were only a meager $1.3 billion which is way below the $4 billion and $ 17 billion proposed by currently for the various construction options. However, this is now price that needs to be paid to address the ever declining Sacramento-San Joaquin Delta and also provide safe drinking water to the cities and farms in California (Piazza, 2012). These are costs proposed by the panel proposed by a panel formed to research and find ways of preserving the water and offer the much needed to the cities and farms.

However, there is also the issue of financial impact to the Northern California economy if most of the water is diverted to Sothern California and hence limiting access to fresh water by farmers. However, this has been addressed by the proposed construction of the two-way canal.

Financial Sources Analysis

Financial analysis of the proposed construction of the proposed two-way canal is important in ensuring there will be sufficient funds for construction and maintenance of the project (Weiser, 2010). It is fair to state that funds need to be availed for project operations, its maintenance, power needs, and payment of debts. A number of future contingency which may alter the financial structure of the project includes:

* Schedule variations with regard to construction processes

* Changing economic landscape such as rates of interest,

* Completion of transfer facilities

* Construction of extra resources not foreseen earlier

* Canal enlargements

* Pending law suit and future law suit outcomes

* Capital cost increments for additional conservation facilities during and after construction

Capital...