The U.S. Environmental Protection Agency (EPA) yesterday announced a Water Infrastructure Finance and Innovation Act (WIFIA) loan of $275 million to the Sewerage and Water Board of New Orleans, in order to modernize the city’s aging and storm-damaged sewer system.
The funded renovation project aims to protect historically underserved communities from the impacts of storm events and climate change. The WIFIA loan will help finance the Sewerage and Water Board of New Orleans’ comprehensive Sewer System Evaluation and Rehabilitation Program, which will undertake over 160 projects to modernize aging and storm-damaged sewer pipelines throughout the city.
The projects are designed to be climate resilient. They will reduce inflow and saltwater infiltration, prevent breaks and leaks in sewer lines, and help maintain existing infrastructure during wet weather events. Together, they will vastly improve the city’s sewer system infrastructure to help protect nearby waterbodies and reduce the risk of flooding in neighborhoods. As a result, the city’s sewer system infrastructure will better protect historically underserved communities during storm events.
The city doesn’t have a combined sewer system but poor pipes conditions in both systems have occasionally caused sanitary sewer discharges during storm events, according to the Greater New Orleans Foundation.
“Today, we are proud to partner with the city through WIFIA,” said EPA Assistant Administrator for Water Radhika Fox. “This low-cost loan will save the city money while supporting critical upgrades to bolster climate resiliency and better protect vulnerable communities. This project illustrates the critical water infrastructure improvements that will be achieved under the Bipartisan Infrastructure Law.”
The $275 million WIFIA loan will finance nearly half of the $561 million project costs. Recognizing both the need for critical infrastructure investment and the water affordability challenges facing the community, the Sewerage and Water Board of New Orleans took advantage of the WIFIA program’s flexible repayment terms to save approximately $100 million. Project construction and operation are expected to create an estimated 1,800 jobs and construction is expected to be completed in 2025.
“New Orleans is a historic city on the front lines of climate change, and this investment is a milestone that was initiated two years ago,” said Sewerage and Water Board President and New Orleans Mayor LaToya Cantrell. “The City of New Orleans has demonstrated time and time again that we are well-equipped to activate the federal resources flowing to our city, and no city is better prepared to put this funding to use than New Orleans. The work we complete with this loan will make New Orleans both more resilient and more equitable.”
