US regional wastewater authority to receive $9.7m loan from PENNVEST

The Abington Regional Wastewater Authority in the state of Pennsylvania, US, will receive a low-interest loan of $9.7m from the Pennsylvania Infrastructure and Investment Authority (PENNVEST) to upgrade its wastewater treatment plant.

Abington is improving its treatment facility to meet the high federal standards aimed at reducing pollution, which may contaminate Chesapeake Bay.

A PENNVEST loan of $9.7m will constitute approximately 30% of the total cost of $34m the authority is estimating to incur to improve the wastewater treatment plant.

The low-interest rate loan has been extended for 20 years, with the first five years being charged at a rate of 1%, whereas the remaining 15 years will be charged at 1.868%.

The authority is expected to save $1.7m in interests during the term.

Abington Regional Wastewater Authority chairman Donald Snyder was quoted by the Times-Tribune as saying that the authority received a substantial loan despite no guarantee.

"It will certainly help us out in the long-run and will likely save residents money in sewer rates," Snyder added.

The remaining amount of $24.3m is expected to be raised through the bond issues, bank loans and through other modes.

Abington Regional Wastewater Authority executive director Robert Davis said the authority would look at various options to raise money for the project.

"Right now, we are just happy we got this (Pennvest) loan. You always want more, but this was a good amount," Davis said.

Authority board members are planning to construct the plant in April 2013.

The wastewater facility serves Clarks Summit, Clarks Green, and South Abington Township.

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Image: Abington Regional Wastewater Authority will use PENNVEST approved loan to improve its wastewater treatment plant. Photo: courtesy of Nigel Wylie.