SALT LAKE CITY (AP) — The estimated costs of a water pipeline to serve Las Vegas could exceed $15 billion under a worst-case scenario for project funding.

Hobbs, Ong and Associates say in a study estimates about $7 billion in construction costs and $8 billion in interest payments.

Southern Nevada Water Authority spokesman J.C. Davis says the estimates are based on projected construction costs within the next two decades and 62 years of interest payments. The costs also assume that the authority will not generate any additional revenue from new users or earned interest on reserve accounts.

Davis says the study was required to prove the project could be done under the worst financial circumstances. The authority has previously said the project would cost about $3 billion, which is based on current construction costs.

Copyright 2011 The Associated Press.


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