New York State Environmental Facilities Corporation (EFC) Acting President Matthew Millea announced today an $11.9 million interest-free loan and $2 million grant for an important water project in the Town of Constantia in Oswego County. The funding is provided via the Drinking Water State Revolving Fund (DWSRF), which is administered jointly by EFC and the State Department of Health (DOH). The interest-free financing and the grant will save Constantia an estimated $14.7 million in principal and interest expense over the term of the financing.
“On behalf of Governor David Paterson, I am extremely pleased to offer this financial assistance to the Town of Constantia,” said EFC Acting President, Matthew Millea.Ãƒâ€šÃ‚Â “Through the DWSRF, we are able to help communities throughout New York provide safe, reliable, and affordable drinking water to their citizens.”
State Health Commissioner Richard F. Daines, M.D. said, “The New York Drinking Water State Revolving Fund helps communities like the Town of Constantia make long-awaited and necessary improvements to their drinking water systems.”
Town Supervisor Andrew Kelsey said: “On behalf of the residents and businesses in our Town, we are truly appreciative of the expert assistance from EFC and the Department of Health in obtaining the SRF funding for our water project. We could not have reached this goal without their help.Ãƒâ€šÃ‚Â This project will remedy the serious drinking water problems we have lived with by providing a new distribution system, interconnection and system consolidation, ensuring the community of affordable and safe drinking water. ”
The DWSRF financing will be used for a new distribution system with pump station and storage tank, a new interconnection and system consolidation. The project creates the North Shore Water System which will replace private inadequate wells and provide safe water to approximately 1,200 residents and businesses. The project also consolidates several other water systems whose water supplies were not in compliance with State standards. Project construction is expected to begin in the spring of 2009 and be completed in September 2010, when, at that time, the Town is expected to convert its short-term SRF loan to an interest-free 30-year loan. With the grant and interest-free financing, the Town is expected to save $14.7 million in principal and interest expense over the term of the financing.
Since 1997, the Drinking Water SRF has provided more than $2.3 billion in low-cost financing and grants, and $135.3 million in subsidies for 546 drinking water improvement projects throughout New York State. Through the DWSRF program, borrowers have saved more than $148 million in avoided interest expenses and have received more than $230 million in direct grant funding.
In 2003 DOH conducted a drinking water infrastructure needs assessment which showed that New York State communities together require almost $15 billion in drinking water system upgrades in order to achieve current federal drinking water standards. DOH is currently finalizing its updated drinking water infrastructure needs assessment.
For additional information on the New York Drinking Water SRF program, please visit www.NYSEFC.org.