Water, Sewer Loans OK’d

Water and sewer projects received $530 million of funding last week as the Pennsylvania Infrastructure Investment Authority approved loans and grants throughout the state to help drinking water and wastewater systems.

The authority approved $411 million of loans that will be financed by general obligation bonds sold on behalf of the state, loan repayments from borrowers, and a potential revenue bond deal, said executive director, Paul Marchetti.

In November, voters approved $400 million of GO bonding for water and sewer needs. Officials have yet to set a sale date.

“Some of it will come from [the bonds] and loan repayment funds that we have on hand ... and then I’m looking right now as to whether or not we think we’re going to have to do some revenue bonds,” Marchetti said.

Local governments will also receive $119 million in grants through the American Recovery and Reinvestment Act.

Of the $411 million of loans, Philadelphia will receive $215 million. Nearly $85 million will upgrade sewer lines, another $100 million will refurbish water plants, pump stations, and water lines, and $30 million will address storm water management.

Right before the November election, state officials released a Sustainable Infrastructure Task Force Report that estimated Pennsylvania’s unfunded water and sewer infrastructure needs at $36.5 billion over the next 20 years.

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