BALTIMORE, MD (Tuesday, January 12, 2021) — Mayor Brandon M. Scott announced that Baltimore City has once again been selected to submit Water Infrastructure Finance and Innovation Act (WIFIA) applications for the 2020 Water and Wastewater Rehabilitation Programs. The City had submitted proposals and supporting documents for consideration for this highly sought-after loan not long after its previous award in 2019.  

The United States Environmental Protection Agency (EPA) stated, “We have reviewed these materials and are very pleased to inform you that the 2020 Wastewater Rehabilitation Program has been selected to submit an application for credit assistance for up to $63,796,848 or not to exceed 49 percent of total eligible project costs.” 

In addition, the City, as part of the 2020 Water Infrastructure Rehabilitation Program has been selected to submit an application for credit assistance for up to $29,429,400. Together these loans total close to $100 million.  

These funds, if awarded, will enable DPW to continue improvements to its water and wastewater infrastructure while  reducing costs in the process. “Not only would the funding help DPW pay for critical upgrades to its aging pipes and operating plants, but the WIFIA loans are provided at a much more affordable rate than DPW could get in the private financial markets," said Department of Public Works Acting Director Matthew Garbark. "That represents millions of dollars in value for the City’s ratepayers.” 

Baltimore received $63 million in Wastewater Financing through the WIFIA program. With the City's current six year wastewater capital improvement plan totaling over $1 billion, EPA’s WIFIA loan will help finance up to 49 percent of that amount. Additionally, Maryland Department of the Environment (MDE) will finance approximately $66 million from its Water Quality Revolving Loan Fund. Because both the WIFIA program and the MDE loan program offer low interest rates, the City is expected to realize significant cost savings. The City of Baltimore will continue to pursue favorable financing alternatives that will provide low interest rates and favorable financing terms.

Baltimore also received $29 million in Water Financing through the WIFIA program. Identical to the wastewater improvement plan, Baltimore’s current six year water capital improvement plan is greater than $1 billion, the WIFIA loan helping to finance up to 49 percent of that amount. Additionally, MDE will finance approximately $30 million from its Drinking Water Quality Revolving Loan Fund. 

“Every dollar counts, and this WIFIA funding provides substantial support for the City’s Water and Wastewater infrastructure,” said Mayor Brandon Scott. “We are grateful to DPW, the Federal Government, and the Environmental Protection Agency in particular, for their consideration.  Investment in infrastructure is not only critical to providing water and wastewater services, it also plays a major role in the economic recovery of our communities and beyond.” 

Background 

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program at EPA that 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.