Bond sale saves 10 cents on Carlsbad water price
18 Dec 12 by desalination
The San Diego County Water Authority (SDCWA) announced on 14 December 2012 that bonds for the 189,000 m³/d Carlsbad Desalination Plant had been sold at a cheaper rate than had been anticipated.
This has reduced the water price by around US$ 0.10/m³.
The SDCWA last month approved an agreement to buy up to 56,000 acre-feet (AF) (69 million m³) per year from Poseidon Resources, developers of the desalination project, to secure its water supply. The 30-year purchase agreement was based on a projected cost range of US$ 2,042-2,290/AF (US$ 1.55-1.86/m³).
However, rather than selling at an interest rate of 5.2-5.6% as forecast in November 2012 by Ken Weinberg, director of water resources for SDCWA, the bonds realised a rate of 4.78%. This saved approximately US$ 125/AF (US$ 0.10/m³), reducing the price of water from the plant to US$ 1,917‑2,165/AF (US$1.55‑1.76/m³).
Construction of the plant is set to start early in 2013 next to the Encina Power Station in Carlsbad. The project also includes a 10 mile (16 km) pipeline that connects the new plant to the WDCWA aqueduct in San Marcos.
The reverse-osmosis desalination equipment and plant operation for Carlsbad will be provided by IDE Technologies. Commercial operations are expected in 2016.
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