The North Dakota Industrial Commission has approved a loan of $40.5m for a new wastewater plant in the city of Dickinson, North Dakota, US.
The loan, provided under the Clean Water State Revolving Fund (SRF) Programmw, forms most of the financing part of the $48m wastewater plant which is being constructed to treat effluents.
The city is expecting to arrange the rest of the amount through state grants.
Situated about 3.2km south-east of Dickinson, the new wastewater facility will replace the city's lagoon system of wastewater treatment.
Dickinson city administrator Shawn Kessel was quoted by The Dickinson Press as saying that the initial construction of the wastewater plant will treat effluent for a population of over 30,000.
"The new mechanical plant has been designed to treat effluent to a higher standard, which allows the city to sell the treated product," Kessel added.
"Those revenues will be dedicated to pay down the facility construction costs, thereby lowering the cost for residents. The goal is to make the impact on residents as small as possible."
The treated water from the facility will not only be sold for industrial purposes but will also be released into Heart River for irrigation.
US Environmental Protection Agency managed the SRF funds for the plant as a part of the Clean Water Act.
Dickinson will repay the loan amount in 20 years at a fixed rate of 2.5%.
The new plant is expected to begin service by the final quarter of 2014.
The new facility was designed by Apex Engineering Group, with John T. Jones Construction as the main contractor of the project with assistance from Muth Electric and Williams Plumbing and Heating.
Image: The city of Dickinson will use an approved loan to construct a new wastewater plant and treat water effluent. Photo: Nigel Wylie