The Brushy Creek Regional Utility Authority recently announced that it expects costs for phase 1 of its planned multi-city water supply project to be millions of dollars less than originally projected, based on reduced construction prices and bond interest rates, according to a BCRUA press release.

Seven tightly grouped bids came in around the low $20 million range, versus an original estimate of $32 million. The bids were for construction of Phase 1A of the project — a raw water pipeline from Lake Travis to a new treatment plant on FM 1431 in northwest Travis County. The bids, opened late last month, reflected costs for both materials and labor that have come down considerably since fall 2008. A contract will be awarded in August.

“This will amount to significant savings for the project,” said Chris Lippe, BCRUA general manager. “And costs for materials are still bottoming out.”

Lower interest rates on bonds will add to the savings. A 4.82 percent interest rate was achieved on the bonds issued by the Texas Water Development Board, the agency that is providing funding for phase 1 of the water supply project. Original estimates for interest rates ran as high as 5.5 percent.

“To achieve a rate like this in this volatile market is very positive,” said Mitch Fuller, BCRUA president. “It is far below what we had anticipated might be necessary.”