1. Major Life Extension Project at Don Pedro Dam Faces Significant Budget Increases The Don Pedro life extension project budget has increased substantially since 2021, with costs rising an average of 9.5% per year due to inflation (steel up 92%, copper up 35%), supply chain challenges, and market conditions. The project is critical as the 50-year-old generators are at end-of-life with cracked rotors requiring inspection every 3,000 hours, and key components are becoming obsolete with parts sourced from eBay.
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