The U.S. Environmental Protection Agency (EPA) has announced the availability of approximately $1 billion in credit assistance for water infrastructure projects under the new Water Infrastructure Finance and Innovation Act (WIFIA) program.
EPA’s WIFIA program will provide long-term, low-cost credit assistance in the form of direct loans and loan guarantees to creditworthy water projects.
According to EPA, WIFIA provides another option for financing large infrastructure projects – generally at least $20 million – in addition to the State Revolving Funds and bond market.
“The launch of the Water Infrastructure Finance and Innovation Act program marks a huge step forward for modernizing our nation’s aging water infrastructure,” said EPA Administrator Gina McCarthy.
WIFIA is available to state, local, and tribal governments; private entities; partnerships; and State Revolving Fund programs.
EPA estimates that funds appropriated to the WIFIA program can be leveraged at a ratio greater than 50 to one, which means the $17 million program budget could allow EPA to make approximately $1 billion in loans and stimulate about $2 billion in total infrastructure investment.