Diversion Authority Comments on Invitation to Apply for a Federal Low-Interest WIFIA Loan from U.S. EPA
The Diversion Authority today received confirmation the United States Environmental Protection Agency (EPA) has invited the Diversion Authority to apply for a low-interest Water Infrastructure Finance and Innovation (WIFIA) loan. The invitation is the next step in the process to secure this important financing tool and was in response to the Letter of Interest filed by the Diversion Authority on July 5, 2019. Invitations to apply are limited through a highly competitive process and are viewed as the milestone event, which will result in the Diversion Authority closing a WIFIA loan with the US EPA.
The invitation to apply for the $510 Million loan, operated through the U.S. Environmental Protection Agency (EPA) was secured with the support of North Dakota’s Gov. Doug Burgum, Sen. John Hoeven, Sen. Kevin Cramer and Rep. Kelly Armstrong.
According to Sen. Hoeven, the WIFIA loan amount of $510 million dollars could go up to $561 million, depending on the eligible cost share.
“We are grateful for the leadership of our Congressional delegation in this area. This loan would not have been possible without their vision and efforts in Washington,” Board Chair and Cass County Commissioner Mary Scherling said. “Having a low-interest loan helps solidify our financial plan. This is a critical financial step as we continue construction and bring a P3 developer on board.”
“Once again we can see the federal government stepping up to partner and help build the FM Area Diversion Project,” Board Vice Chair and Clay County Commissioner Kevin Campbell said. “With a wet fall in our midst, it’s more important than ever to keep moving forward with financing and building flood protection for our communities.”
The WIFIA program was enacted in 2014 and allows local, state, tribal entities and some non-profit entities to apply for projects with regional and national significance. Eligible projects range from drinking water to wastewater projects, storm water and snow melt mitigation, drought prevention or a combination of infrastructure projects.
The loans have a single fixed interest rate that is established at closing. The payment schedules can be customized with repayment starting up to five years after project completion and can be repaid up to 35 years after project completion.
“Having a fixed interest rate gives us the opportunity to further solidify the financial plan with real numbers today. The WIFIA loan has great terms, and provides better certainty to our Diversion financial planning through the known interest rate and payback terms,” Scherling said. “This fits with the updated financial plan and we will keep moving forward.”
For more information about U.S. EPA’s WIFIA Program, visit www.epa.gov/wifia.
- Diversion Authority Comments on Invitation to Apply for a Federal Low-Interest WIFIA Loan from U.S. EPA — October 8, 2019
- ND Legislature Approves $180 Million Additional for Project; Diversion Board to Continue Working on Financial Plan and Preparing for Project Construction — April 25, 2019
- Hoeven: USACE Fiscal 2019 Work Plan Provides $35 Million in Construction Funding — November 21, 2018
- Diversion Authority statement on Increased Federal Funding Commitment, Amendment to Project Partnership Agreement (PPA) — March 5, 2019