Infrastructure improvements for clean water projects in Rhode Island.
Rhode Island has secured $100 million in funding from the Infrastructure Bank to facilitate clean water projects across the state. This funding includes $75 million in open market bonds and a $25 million direct loan, with an emphasis on improving water quality and infrastructure. Major projects like a sewer overflow initiative will reduce overflows significantly, enhancing environmental health. With additional loan forgiveness available, this investment is set to benefit local residents by ensuring cleaner water and more affordable sewer bills.
Rhode Island has successfully secured $100 million in funding to support clean water projects across the state, marking a significant investment in infrastructure aimed at improving water quality and enhancing environmental health. The Rhode Island Infrastructure Bank announced the bond financing, which consists of $75 million in open market bonds, classified as Series A, and a $25 million direct loan, regarded as Series B.
Both series of financing will have a term of 30 years at an interest rate of 3.14%. Notably, the Series A bonds received top ratings of AAA from S&P Global Ratings and Fitch Ratings, underscoring the financial reliability and strength of these investments. Additionally, over $7 million in loan forgiveness will be available through the federal Infrastructure Investment and Jobs Act, further supporting the financial viability of the projects funded.
The funding will directly facilitate the construction of key clean water initiatives, including a significant sewer overflow project managed by the Narragansett Bay Commission. This project includes the development of a massive 2.2-mile tunnel under the cities of Pawtucket and Central Falls. The tunnel aims to drastically reduce sewer overflows by 98%, ensuring that stormwater is treated effectively before it discharges into the environmentally sensitive waters of Narragansett Bay.
RBC Capital Markets played a crucial role as the senior managing underwriter for this bond issuance, while Hilltop Securities served as the financial adviser, and Hinckley Allen was designated as the bond counsel. The collaborative effort from these entities highlights the strategic planning involved in undertaking such a substantial investment in infrastructure.
Since 2003, the Narragansett Bay Commission has utilized financing from the Rhode Island Infrastructure Bank to partially fund its sewer projects, amounting to over 1 billion gallons of polluted water being prevented from entering the bay annually. This continual investment in clean water infrastructure has contributed significantly to the enhancement of water quality in the region.
The emphasis on infrastructure investment is a critical component of Rhode Island’s strategy for environmental safety and sustainability. By leveraging federal resources to support these local projects, the state is working to fortify its water systems and decrease potential risks posed by outdated infrastructure.
Clean water advocates are optimistic about the implications of this funding. It is anticipated that the financial influx will yield cleaner water for Narragansett Bay and provide relief in the form of more affordable sewer bills for thousands of Rhode Islanders. The ongoing financial commitment to upgrading water infrastructure serves not only a fiscal purpose but also as a pledge to the community’s health and environmental responsibility.
This initiative falls within a broader commitment by the state to ensure that residents benefit from modernized water systems and protect natural resources. The collaboration among state agencies, local governments, and financial institutions paves the way for future projects aimed at sustaining Rhode Island’s water quality and ensuring public health.
In summary, the $100 million funding secured by the Rhode Island Infrastructure Bank represents a vital step forward in addressing clean water needs across the state. The comprehensive approach to financing, ongoing partnerships, and the focus on infrastructure enhancements will undoubtedly contribute to a healthier environment for current and future generations in Rhode Island.
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