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Birmingham Secures $171M EPA Loan for Safe Drinking Water Infrastructure

Water treatment plant construction.

Birmingham Secures $171M EPA Loan for Safe Drinking Water Infrastructure

In a significant move for the development of safe drinking water infrastructure, the city of Birmingham has secured a substantial loan of $171 million from the Environmental Protection Agency (EPA) under the Water Infrastructure Finance and Innovation Act (WIFIA).

A Welcome Initiative

Reflecting on the loan’s benefits, U.S. Representative Terri A. Sewell remarked, “This is great news for the residents of Birmingham. Not only will this loan improve the city’s water supply and ensure safe drinking water, but it will save the city money and create more than a thousand jobs.” Funding from this federal loan program, despite its long acronym, leads to substantial improvements in water quality and mitigates financial burdens on communities.

The WIFIA Program

The WIFIA program, administered by the EPA, aims at accelerating investment in the country’s water infrastructure. This is achieved by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant water projects. The newly-acquired loan will enhance the quality of drinking water for over 770,000 Birmingham metro residents.

First Loan of Its Kind in Alabama

This loan marks a significant milestone as it is the first of its kind awarded in Alabama. The fund will primarily be spent on two significant projects – the improvement of the Lake Purdy Dam and replacement of lead service lines, thereby reducing the risk of lead exposure for residents.

Benefits of the Loan

According to the EPA, the Birmingham Water Works will save approximately $50 million by utilizing a WIFIA loan instead of traditional financing. The loan is not just a financial boost but is projected to generate around 1,200 jobs through the construction and operation of the new infrastructure.

Enthusiastic Response from the EPA

Acting EPA Region 4 Administrator, Jeaneanne Gettle, expressed her enthusiasm about the decision during her recent visit to Birmingham for the loan announcement. She said, “Water is essential to healthy, thriving communities. That’s why EPA’s $171 million low-interest loan is so important for the residents and businesses in Birmingham. It will help upgrade aging water infrastructure, including reducing water main breaks and removing legacy lead pipes, while reducing project costs.”

A Great Leap Forward

This significant milestone has been widely welcomed by the city’s residents and stakeholders, who look forward to the positive changes this loan will bring about. The news marks a great leap forward for Birmingham, emphasizing its commitment to providing safe, clean drinking water to its residents while also driving economic growth.


HERE Birmingham
Author: HERE Birmingham

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