Cost-Sharing and Project Financing
Author(s)
Almodovar, Lillian
Meyer, John W.
Advisor(s)
Editor(s)
Hatcher, Kathryn J.
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Abstract
The Water Resources Development Act of 1986
(WRDA 86), Public Law 99-662, established new rules for the cost sharing of Federally authorized water resources projects. For the first time, sponsors are required to share
in the cost of feasibility studies to ensure that dwindling Federal dollars are spent wisely with priority to those projects with strong sponsor support. Sponsors are also
required to pay a share of the Planning, Engineering, and Design (PED) and project construction costs in addition
to the traditional costs for lands, easements and rights-of way.
With the passage of WRDA 86, the roles and responsibilities of both the Corps of Engineers (CoE) and the non-Federal sponsors changed radically. The CoE (no longer a sole benefactor) and the non-Federal sponsor (no
longer a passive recipient) became partners in the development of water resources projects.
This partnership brings along increased financial responsibilities to the non-Federal sponsor and increased
management responsibilities to the CoE. The Project Cooperation Agreement (PCA), formerly LCA, details the responsibilities of all parties involved in project development. An important element of the PCA is a financial analysis package to ascertain the non-Federal sponsor's ability to meet financial requirements necessary for project
implementation. New cost-sharing requirements under WRDA 86 and the elements of the financial analysis package are the two main topics of this paper.
Sponsor
Sponsored and Organized by: U.S. Geological Survey, Georgia Department of Natural Resources, The University of Georgia, Georgia State University, Georgia Institute of Technology
Date
1993-04
Extent
Resource Type
Text
Resource Subtype
Proceedings