TWDB Closes on $255M for Reservoir, Saving $18M

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DALLAS -- The Texas Water Development Board closed on a $255 million bond issue to help finance a new reservoir on the Colorado River.

By relying on the TWDB's triple-A rating, the Lower Colorado River Authority is saving more than $18 million in interest costs, according to the TWDB.

"Not only will it provide an additional water supply for the state, but due to the low-interest financing options made available through the TWDB, the project will save LCRA a significant amount of money," said Bech Bruun, chairman of TWDB.

The bond proceeds will finance the planning, real estate acquisition, design and construction of the Lane City Reservoir in Wharton County. The off-channel reservoir will increase LCRA's overall system firm yield by up to 90,000 acre-feet. The reservoir will be the first in Texas in many years.

"The Lane City Reservoir is the result of hard-working, forward-thinking individuals who are continually looking for ways to develop additional water supplies for Texas," said TWDB Board member Kathleen Jackson.

LCRA broke ground on the reservoir project in December 2014 and expects it to be operational by 2018.

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