Indiana receives $196 million loan to improve drinking water
INDIANAPOLIS (INDIANA CAPITAL CHRONICLE) — The head of the U.S. Environmental Protection Agency’s (EPA) Water Office, Bruno Pigott, joined Indiana Finance Authority’s Jim McGoff on Friday to announce a $196 million loan to improve drinking water and wastewater systems statewide. This funding will help address the demands of a growing population.
The State of Indiana intends to use this loan to finance drinking water and wastewater infrastructure improvement projects to better serve Indiana communities. This investment will help address aging infrastructure and expand services in communities experiencing growing needs. Projects that will receive funding are located throughout the state and are expected to benefit 134,000 Indiana residents.
EPA’s State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program provides loans exclusively to state financing authorities, also known as state revolving fund programs. This SWIFIA loan offers additional low-cost financing to Indiana’s Clean Water and Drinking Water State Revolving Funds, that will help implement critical water infrastructure projects in the state.
“I want to congratulate the State of Indiana for securing a $196 million loan from EPA. Through our partnership, we will upgrade water infrastructure across the state to keep residents healthy, protect water resources, and create good-paying jobs while keeping water bills affordable,” Pigott said. “The State of Indiana is ahead of the curve in securing EPA financing to advance water infrastructure goals and benefit 134,000 people across the state.”
“The IFA is continually searching for alternative funding sources to keep pace with Indiana’s increasing water-infrastructure needs,” said McGoff. “EPA’s SWIFIA program provides that additional source of funding, which will help communities across Indiana invest more than $400 million in their local water systems.”
This loan will be Indiana Finance Authority’s first SWIFIA loan and third loan through the EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) program, totaling more than $630 million in WIFIA financing to advance water infrastructure projects in Indiana. The SWIFIA loan will offer the authority further flexibilities by allowing deferment of principal payments for 20 years and substantial savings for Indiana residents. Savings from Indiana’s first WIFIA loan totaled more than $130 million.
Since its creation, EPA’s Water Infrastructure Finance and Innovation Act program has announced $21 billion in financing to support $45 billion in water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 150,000 jobs.