$474 million in low-interest loans available for wastewater, drinking water projects
JEFFERSON CITY, MO, OCT. 29, 2018 – The Environmental Improvement and Energy Resources Authority will be issuing $32 million in tax-exempt revenue bonds to support Missouri’s water and wastewater infrastructure.
The proceeds of this issuance will provide low-interest loans to communities throughout Missouri to repair or replace aging drinking water and wastewater systems.
Including the EIERA bonds being issued, it is anticipated that more than $391 million in low-interest loans will be available for wastewater projects and $69 million will be available for drinking water projects for the fiscal year 2019.
“Aging water and wastewater systems is a problem for all Missouri communities,” said Governor Parson. “Repairing and replacing these systems is very expensive, and funding is often limited. Fortunately, communities in Missouri have access to infrastructure funding through the State Revolving Loan Fund.”
The loans are provided through the Department of Natural Resources’ State Revolving Loan Fund. The EIERA bonds provide the state match necessary to allow the State of Missouri to draw an additional $173 million in federal capitalization grants into the infrastructure loan fund.
The EIERA bonds have been rated AAA and Aaa by Fitch and Moodys, respectively.
The EIERA and the Department of Natural Resources work cooperatively to implement the State Revolving Fund program, which has provided $3.4 billion in funding since the program began in 1989. Communities can borrow money at interest rates with considerable savings over conventional financing; the average interest rate over the last year was below 1.3 percent.