Alaska Natural Gas Transportation Systems. White House Task Force Lead Agency report on construction delay and cost overruns
The objective of this report is to review the analysis and findings of FPC in their recommendations to the President. It generally agrees with FPC's relative ranking among the projects with regard to the possibility of cost overrun and construction delay but differs sharply with respect to the...
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2020
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| Online Access: | http://www.osti.gov/servlets/purl/6215406 https://www.osti.gov/biblio/6215406 https://doi.org/10.2172/6215406 |
| Summary: | The objective of this report is to review the analysis and findings of FPC in their recommendations to the President. It generally agrees with FPC's relative ranking among the projects with regard to the possibility of cost overrun and construction delay but differs sharply with respect to the magnitude of the overruns. The FPC estimates range from 5 to 10% cost overruns, whereas this report estimates direct cost overruns for the various proposals ranging from 30 to 40%; moreover, this report finds that overruns on total costs including financing (allowance for funds used during construction) may range from 40 to 55%. The Commissioners have estimated potential delays ranging from 0 to 12 months; this report anticipates delays ranging from 15 to 17 months. This report indicates the Arctic Gas proposal to contain the greatest uncertainty, while the Alcan and El Paso proposals contain less. The Alcan proposal has the earliest expected delivery date and the least total cost, followed by El Paso and Arctic Gas. (DLC) |
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