Improve Operation or Build New Projects

The value of existing federal water resources projects is estimated from historical construction costs. The value of improved operation of existing facilities is then estimated and shown to be at least as large as the value of new construction for the next 20 years. It is suggested that these improvements in operation of existing facilities can be obtained at about one percent of the cost of constructing new facilities to produce the same amount of benefits. Finally, recommendations are presented for reviewing and improving the operation of existing projects.