Cost to build largest new reservoir in California in 50 years increases by $2 billion to at least $6.2 billion

Construction costs for the Sites Reservoir in California have increased by about 50%, rising from $4.5 billion to between $6.2 billion and $6.8 billion. This cost escalation is attributed primarily to inflation of construction materials such as concrete and steel, along with additional costs from factory shutdowns during the COVID-19 pandemic and tariffs. Despite these challenges, the project is on schedule to begin construction by late 2026, with an anticipated completion in 2033. This reservoir, crucial for the water needs of millions, would be California's largest new reservoir built since 1979.

Construction costs for Sites Reservoir have surged approximately 50%, from an original estimate of $4.5 billion to between $6.2 billion and $6.8 billion due to inflation of construction materials.

Increased prices are attributed to inflation, factory shutdowns during the COVID pandemic, and tariffs, which have significantly impacted the costs of concrete and steel used in construction.

Despite the rising costs, Jerry Brown stated that the project remains on track and aims to begin construction by the end of 2026, with completion expected by 2033.

Sites Reservoir is described as a vital component of California's water future, capable of holding 1.5 million acre-feet of water, sufficient for at least 7.5 million people annually.

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