Pete HahnloserThe U.S. Environmental Protection Agency (EPA) will provide a $171 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Birmingham Water Works Board in Alabama. The loan will support improvements to the drinking water supply that supports 770,000 residents in Birmingham.
“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 watermain breaks and removing legacy lead pipes, while reducing project costs,” EPA Acting Regional Administrator Jeaneanne Gettle said.
The WIFIA loan will be used to improve the reliability of Birmingham’s drinking water supply and make it more resilient in the face of drought by upgrading the Lake Purdy Dam, as well as modernizing drinking water infrastructure. The board began considering upgrade plans in 2022 and in 2023 approved the Carson Loop Phase 6D pipeline, which will allow the transfer of water from reservoirs in the northeastern service area to the southern area supplied by Lake Purdy.
Constructed between 1906 and 1910, the Lake Purdy reservoir provides raw water to Birmingham Water Works’ largest treatment plant, capable of producing 80 million gallons of treated water daily. The rehabilitation project involves building a downstream concrete buttress, thoroughly grouting the bedrock to protect against weathering and erosion, replacing inlet and outlet valves, and replacing the dam’s bridge.
For years, Birmingham has faced challenges with water loss due to aging infrastructure. This loan will enable the city to carry out significant upgrades to its distribution system and is expected to prevent more than 250 water main breaks each year.
This WIFIA loan is the EPA’s first in Alabama and will benefit 15% of the state’s population. The board is expected to save around $50 million by using the WIFIA loan for financing, and the project’s construction and operation will generate approximately 1,200 jobs.
Created by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan initiative managed by the EPA with the goal of speeding up investment in water infrastructure by offering long-term, low-cost credit assistance for projects of regional and national importance.
The EPA is now in its seventh round of selecting projects for WIFIA financing. In this round, the agency is offering $6.5 billion in funding and an additional $1 billion through SWIFIA, a loan program specifically for state infrastructure financing authorities. The EPA is currently accepting letters of interest for both WIFIA and SWIFIA loans.
Photo by Rojan Maharjan on Unsplash
