EPA Offers Significant Loan Opportunity to DPW

Thursday Oct 24th, 2019

Green banner with DPW logo and text "Department of Public Works Press Release"

Baltimore City Department of Public Works (DPW) Director Rudolph S. Chow, P.E., today announced that the United States Environmental Protection Agency has again offered Baltimore City an opportunity to apply for a second set of Water Infrastructure Finance and Innovation Act (WIFIA) loans worth up to $392 million.

The savings on WIFIA loans over conventional loans extends into the tens of millions of dollars.

In February of this year, U.S. Environmental Protection Agency Administrator Andrew Wheeler announced a $202 million WIFIA loan to the City of Baltimore to help the city make system-wide upgrades to its aging wastewater infrastructure.

Because of that loan Baltimore City water rate payers will save $40 million in interest payments over 30 years, compared to traditional bond market loans. 

For this most recent round, with nearly $400 million potentially available to the City, a projected $80 million in interest savings is possible.

Director Chow noted the support of Mayor Bernard C. “Jack” Young for DPW’s success in the competitive WIFIA marketplace. “Mayor Young has been instrumental in promoting Baltimore for such loans. They are essential in helping us to continue our infrastructure upgrades, while saving on costs. We are grateful to him, and to EPA, for this opportunity.”

Mr. Chow added that the Department will be applying for loans for wastewater, stormwater, and drinking water projects. WIFIA loans provide credit assistance for up to 49 percent of total eligible project costs.

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