The City of Oak Ridge closed on a $20.7 million federal loan on Thursday for a new water treatment plant in south Oak Ridge.
It’s a Water Infrastructure Finance and Innovation Act, or WIFIA, loan. The funds provided by the federal loan program will be used to design and build the new water plant, which will replace an aging facility on Pine Ridge that has served the community since the 1940s.
The total cost for replacement of the water treatment plant is estimated to be $42.2 million, the city said in a press release on Friday. WIFIA will provide about 49 percent of that cost, with the city using the Tennessee State Revolving Fund Loan Program to cover the balance, the press release said.
“After three years of application and planning, the City of Oak Ridge has reached a significant milestone in the funding needed for a new replacement water plant,” Oak Ridge City Manager Mark Watson said in the press release. “WIFIA has helped Oak Ridge with a low-interest federal loan, allowing us to avoid potential failures in a system originally designed for a different Oak Ridge. The financial terms will allow Oak Ridge to afford these much-needed improvements to serve not only our residents, but the national security and U.S. Department of Energy facilities located here.”[Read more…]