Birmingham, Ala., to upgrade aging water infrastructure with $171 million WIFIA loan
(UI) – The U.S. Environmental Protection Agency (EPA) announced a $171 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Birmingham Water Works Board in Alabama.
EPA’s loan will support improvements to the drinking water supply that supports 770,000 residents in the City of Birmingham.
With this WIFIA loan, the Birmingham Water Works Board will secure a more reliable source of drinking water when it makes improvements to the Lake Purdy Dam. The city will also make progress towards upgrading its drinking water infrastructure so that it is not only more efficient, but also more protective of public health.
The city will replace lead service lines, which are pipes connecting people’s homes and businesses to water mains. Replacing lead pipes is a critical step for reducing risk of lead exposure, and a priority for the Biden-Harris Administration.
For years, the City of Birmingham has struggled with water loss from aging infrastructure. This loan will allow them to complete a major upgrade of its distribution system to prevent water loss and safely store treated drinking water for distribution to its customers. By preventing over 250 water main breaks annually, residence and businesses will experience improved service while lowering the Board’s maintenance costs.
“This is great news for the residents of Birmingham,” said U.S. Representative Terri A. Sewell (AL-07). “Not only will this loan improve the city’s water supply and ensure safe drinking water, but it will save the city money and create more than a thousand jobs.”
This is EPA’s first WIFIA loan in the State of Alabama and it will benefit 15 percent of the state’s population. In addition, the Board will save approximately $50 million by financing with a WIFIA loan, and the project’s construction and operation will create about 1,200 jobs.
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects.
“Water is essential to healthy, thriving communities. That’s why EPA’s $171 million low-interest loan is so important for the residents and businesses in Birmingham. It will help upgrade aging water infrastructure, including reducing watermain breaks and removing legacy lead pipes, while reducing project costs,” said Acting EPA Region 4 Administrator Jeaneanne Gettle.
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