INFRASTRUCTURE PROJECT FINANCING

Transcription

1 INFRASTRUCTURE PROJECT FINANCING DWRF AND SRF FUNDING OVERVIEW FOR WATER / WASTEWATER IMPROVEMENTS By: Dima El-Gamal, Ph.D., PE, LEED AP February 8, 2011

2 State Revolving Loan Funds Low-interest Loans Distributed By MDNRE Water Systems Sanitary Sewer Systems Drinking Water Revolving Fund (DWRF) State Revolving Fund (SRF)

3 Why Revolving Loan? Planning/Design/Construction Cost $2,000,000 $5,000,000 $10,000,000 Annual Capital ( 20 years) 2.5% $128,000 $321,000 $641,000 Annual Capital ( 20 years) Bond 5% $160,000 $401,000 $802,000 Annual Savings $32,000 $80,000 $161,000 Total Savings ( 20 years) $640,000 $1,600,000 $3,220,000

4 Drinking Water Revolving Fund Funds Planning, Design and Construction of Water Supply Projects Current Interest Rate is 2.5% Over 20 To 30 Years Projects Funded Based On: Priority Listing Availability of Funds

5 Examples of Eligible Projects Projects That Can Justify/Demonstrate Existing Need Water Source and Treatment Upgrades Security Upgrades Correction of Pressure Deficiencies: Water System Looping To Improve Pressure Upgrades of Water Mains (< 8-inch Diameter) Booster Stations / Pressure Reducing Valves Replacement of Frequently Breaking Water Mains System Replacement / Repairs (Exceeded Its Service Life) Meter Replacements and Meter Reading System

6 Examples of Ineligible Projects Projects That Are Aimed At Only: Promoting Growth Or Improving Fire Flow

7 DWRF PROJECT PRIORITY LIST Water Quality Issues Components Addressed Water Source / Treatment Water Distribution Booster Stations / Storage Tanks Minimum Capacity Reliability System Upgrades Enforcement Action Population Disadvantaged Communities

8 DWRF PROJECT SUBMITTALS PROJECT PLAN Justify Project s Needs Address Project s 20 Year Needs For Project Components Obtain Environmental Clearances Identify Potential Alternatives (Feasibility Analysis And Environmental Impacts) Select Alternative And Estimate Impact On User Charge Public Hearing, Finalize Project Plan, And Submit To Mdnre

9 DWRF Project Plan Timeline ASAP Start Project Planning No Later than March 20 th Public Review Of Draft Project Plan No Later Than April 20 th Public Hearing No Later Than April 20 th Project Plan Adoption No Later Than May 1 st Project Plan Submittal

10 ADDITIONAL DWRF PROJECT SUBMITTALS Three Part Application User Charge System (Draft / Final) Plans and Specifications For Construction Permits Bond Sale Resolution

11 DWRF Design / Construction Timeline August to September Priority Point List

12 Project Phasing Multiple Project Phases Are Allowed For Up To Five Years Project Maintains Priority Ranking For Three Years Project Re-ranked In The Fourth Year

13 STATE REVOLVING FUND Funds Planning, Design and Construction of Wastewater System Improvements Current Interest Rate is 2.5% Over 20 Years Projects Funded Based On: Priority Listing Availability Of Funds

14 Examples of Eligible Projects Projects That Can Justify / Demonstrate Existing Need Enforcement Actions ( ACOs) Wastewater Treatment Plant Upgrades Pump Station Rehabilitation Emergency Backup Power Correction of Infiltration and Inflow Construction of CSO Basins Rehabilitation of Sewers (Imminent )

15 Examples of Ineligible Projects Projects That Are Aimed At: Promoting Growth Storm Water Conveyance

16 SRF PROJECT PRIORITY LIST Water Quality Issues Enforcement Points ( Administrative Consent Orders) Population Discharge Stream Dilution Factors

17 SRF PROJECT SUBMITTALS PROJECT PLAN Justify Existing Needs and Address 20 Year Needs Address Infiltration and Inflow Conduct Pipe / Manhole Assessments per the NASSCO (National Association of Sewer Service Companies) Certification Programs Obtain Environmental Clearances Identify and Evaluate Potential Alternatives Select Alternatives and Estimate The Impact On User Charges Public Hearing, Finalize Project Plan, and Submit to MDNRE

18 SRF Project Plan Timeline ASAP Start Project Planning No Later than May Public Review of Draft Project Plan No Later Than June 20 th Public Hearing No Later Than June 20 th Project Plan Adoption No Later Than July 1 Project Plan Submittal

19 ADDITIONAL SRF PROJECT SUBMITTALS Three Part Application User Charge System (Draft / Final) Plans and Specifications For Construction Permits Bond Sale Resolution

20 SRF Design/Construction Timeline September to October Priority Point List

21 Project Segmenting Multiple Project Segments Are Allowed For Up To Five Years Project Maintains Priority Ranking For Three Years Project Re-ranked On The Fourth Year

22 2011 S2 GRANT Signed Into Law December 14, 2010 Covers 90% of Planning and Design $40 Million Available. Up To $1 Million Per Applicant Covers Expenses Incurred On or After December 14, 2010 Grants Awarded In October, January, April, and July MDNRE Is Working On Application Project Must Be Built Within 3 Years of Receiving the Grant

23 2011 S2 GRANT S2 Grant Eligible Activities: Flow Monitoring Infiltration / Inflow Analysis Sewer System Evaluation Surveys Soil Surveys Wetlands Surveys, SRF Project Plan Activities S2 Grant Ineligible Activities: Bidding Services Construction Costs Construction Engineering Applicant s Administrative Costs Engineering Design Basis of Design Report Value Engineering Report User Charge System Report Pilot Studies

24 Thank You Questions