The City of Memphis is in the final stages of receiving a WIFIA loan from the Environmental Protection Agency (EPA) to improve storm water infrastructure across the city, as announced today.
The $44 million loan is financed through the Water Infrastructure Finance and Innovation Act which helps pay for water, wastewater, and stormwater projects across the U.S.
This low interest loan will allow for improvements to the city’s storm water systems as well as save taxpayers millions of dollars.
“The City of Memphis is always looking for ways to save tax payer dollars while simultaneously improving quality of life,” said Mayor Jim Strickland. We’re proud to be seriously considered for this important EPA loan.”
“The City of Memphis is very fortunate to receive a 2nd WIFIA loan from the EPA. WIFIA funding opportunities are very beneficial to cities like Memphis that have infrastructure needs but are challenged with having adequate funding for needed improvements,” Robert Knecht, director of Public Works said. “The funding from this WIFIA loan will enable Memphis Public Works to address stormwater system and program management needs that will ultimately protect at risk property owners throughout City of Memphis from flooding.”
Last year, the City of Memphis secured a $156 million WIFIA loan for the Sanitary Sewerage System. At closing, interest savings over the life of the loan was estimated to be $65 million when compared to interest payable on a $156 million bond issue.
“In 2020, Our Program Team initiated a mission statement including goals to be fiscally responsible and provide innovative solutions in funding and financing. This award allows us to meet those deliverables,” Michael Hooks, Jr., CEO of Allworld Project Management, LLC said.
Requirements for the loan include a $20 million minimum project size, and projects must be deemed creditworthy and demonstrate a reasonable assurance of repayment of the loan. WIFIA can finance up to 49% of project costs. 80% of the total project costs can be federally financed.
WIFIA has closed more than 60 loans totaling $12 billion to help finance over $26 billion for water infrastructure projects.
More information on WIFIA can be found here: https://www.epa.gov/wifia