Mayor Scott awards DPW for selection of major infrastructure loan
Tuesday, January 12, 2021
BALTIMORE, MD (Tuesday, January 12, 2021) – Mayor Brandon M. Scott announced that the city of Baltimore has once again been selected to submit nominations to the Water Infrastructure Finance and Innovation Act (WIFIA) for the 2020 water rehabilitation programs and wastewater. The City had submitted proposals and supporting documents for review for this much sought-after loan shortly after it was previously granted in 2019.
The United States Environmental Protection Agency (EPA) has stated, “We have reviewed these documents and are very pleased to inform you that the 2020 Wastewater rehabilitation program has been selected to submit a request for credit assistance up to $ 63,796,848 or not to exceed 49% of the total eligible costs of the project. ”
In addition, the City, as part of the 2020 hydraulic infrastructure rehabilitation program has been selected to submit a request for credit assistance up to $ 29,429,400. Together, these loans total nearly $ 100 million.
These funds, if allocated, will allow DPW to continue to improve its water supply and wastewater treatment infrastructure while reducing process costs. “Not only would the financing help DPW pay for critical upgrades to its aging pipelines and operating factories, but WIFIA loans are provided at a much more affordable rate than what DPW could obtain in private capital markets.” said Matthew Garbark, acting director of the Department of Public Works. “This represents millions of dollars in value to City taxpayers.
Baltimore has received $ 63 million in wastewater funding through the WIFIA program. With the city’s current six-year wastewater capital improvement plan totaling more than $ 1 billion, the EPA’s WIFIA loan will help fund up to 49% of that amount. In addition, the Maryland Department of the Environment (MDE) will fund approximately $ 66 million from its revolving water quality loan fund. Since the WIFIA program and the MDE loan program both offer low interest rates, the City is expected to realize significant savings. The City of Baltimore will continue to seek favorable financing alternatives that will offer low interest rates and favorable financing terms.
Baltimore also received $ 29 million in water funding through the WIFIA program. Similar to the Wastewater Improvement Plan, Baltimore’s current six-year water capital improvement plan is over $ 1 billion, with the WIFIA loan helping fund up to 49% of that amount. In addition, MDE will finance approximately $ 30 million from its revolving loan fund for drinking water quality.
“Every dollar counts, and this WIFIA funding provides substantial support to the city’s water and wastewater infrastructure,” said Mayor Brandon Scott. “We are grateful to the DPW, the Federal Government and the Environmental Protection Agency in particular for their consideration. and beyond.”
Created by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is an EPA federal loan and guarantee program that aims to accelerate investments in the country’s water infrastructure by providing additional long-term credit assistance. and low cost at regional and national levels. important projects.
This press release was produced by the city of baltimore. The opinions expressed here are those of the author.