Birmingham Water Works will receive $171 million through the U.S. Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act loan program to improve drinking water infrastructure.
Darryl Jones, BWW Interim General Manager, said the money will be used to rehabilitate the Lake Purdy Dam, replace water lines, and refurbish distribution tanks.
Jones said the loan provides critical funds to maintain the water system which supplies water to more than 700,000 citizens.
“When we talk about the water system, it is not limited to the city of Birmingham. We touch probably 17 municipalities. We touch parts of five counties in our state. Wherever we supply water, those are our customers. We don’t differentiate because of their zip code or municipality. The money will be used in the most critical parts of the water system,” said Jones.
Jones did not have specifics regarding the repayment of the loan but said repayment would not necessarily impact rates for customers.
“Not necessarily due to this particular loan but there are some rate increases that will happen just because of the operational costs of the water utility. We don’t say because we borrowed this money, you’ll have rate increases. You may have rate increases because it costs more money to provide that cost of service to our customers. Rate increases will happen but not specifically because of this loan,” said Jones.
Birmingham Water Works is the first utility in Alabama to receive a WIFIA loan.
“The Biden-Harris Administration has made it a top priority to upgrade our nation’s aging infrastructure and that includes ensuring every American and Alabamian has access to clean, safe drinking water,” saidU.S. Representative Terri Sewell. “I hope this project will not only improve health outcomes but foster economic development across our city and make a real difference in the lives of so many especially those in my constituency.”