Illinois will provide $250 million in low-interest loans to the Metropolitan Water Reclamation District of Greater Chicago as part of its expanded $1 billion state revolving fund program, Gov. Pat Quinn announced Monday.
The district will use the SRF money for water infrastructure upgrades, to clean up area rivers, for flood prevention, and reducing pollution. Proceeds will finance upgrades to a pumping station that is part of the MWRD’s massive deep tunnel and disinfection equipment to treat outflowing water at several district plants.
“We’re putting thousands of unionized building trades workers back to work, cutting the cost to local governments of financing clean-water projects and ensuring safe drinking water for consumers,” Illinois Finance Authority executive director Chris Meister said in a statement.
After an eight-year lull in SRF borrowing, Quinn last year expanded the state program to $1 billion from $300 million. The move was promoted as both an affordable means to overhaul Illinois’ aging clean water and wastewater infrastructure and as an economic boost that will create an estimated 28,500 jobs.
The IFA is managing the financing with the Illinois Environmental Protection Agency continuing to administer the loan program. The IFA last issued SRF bonds in a $130 million issue in 2004. The IFA last September conducted a request for proposals process for underwriters interested in participating on SRF bond sales and is still reviewing proposal. No timetable has been set for the first bond issue.
The biggest borrower of the revolving fund at the time of the 2004 deal was the triple-A MWRD.
