From The Montrose Daily Press (Cassie Knuth):
Project 7 Water Authority has been invited to apply for a $39 million water infrastructure loan for the Ridgway water treatment plant project. Projects were chosen for their efforts to help modernize water infrastructure for 25 million people while creating up to 49,000 jobs across the country.
If selected, funds would be pulled from Water Infrastructure Finance and Innovation Act (WIFIA) loans fund, providing assistance to the Project 7 initiative slated to provide a second water treatment source to the region. The water resiliency project, estimated to cost between $50 – $70 million, will establish a raw water line that offers more long-term affordable costs and energy-efficient infrastructure.
Project 7 pursued the loan, applying for eligibility in early planning stages. The loan is considered a common funding instrument for water projects, said Miles Graham, spokesman for the water treatment cooperative.
“I think, more than anything, it speaks to what a good candidate this project is for outside federal funding opportunities,” said Graham. “When you look at the project on its merits, it’s really well qualified to bring in low interest loans and grants. So this was one of the first ones [loans] to make sure that we had the ability to take on the needed debt to fund the project.”
As helpful as the loan would be for the water project, Graham emphasized the cooperative’s goal of minimizing as much of the long-term debt that Project 7 takes on as possible.
Seeking grant opportunities and low interest loans such as the WIFIA program would supplement any gaps in funding, as well as mitigate water treatment rate increases that will be applied as a result of the project. Ultimately, it’s the grant opportunities that will keep water rates low, Graham said…
The WIFIA program would provide Project 7, if selected, with financing tools to address challenges around public health and environmental concerns within the community.
In addition to the WIFIA loan, the water cooperative is pursuing several grant opportunities with entities such as FEMA, the Department of Local Affairs and Colorado Department of Public Health and Environment. Project 7 was previously awarded $25,000 through the Bureau of Reclamation grant.