The Environmental Protection Agency announced a $171 million loan for Birmingham Water Works to begin upgrading its older infrastructure while improving efficiency for the group as well.
The Water Infrastructure Finance and Innovation Act established a federal loan program in 2014 that is administered by the EPA. This is its seventh year of distribution, but the first disbursement to impact Alabama.
Most importantly, this loan will update one of the state’s oldest dams, the Lake Purdy Dam. Updates to the dam will create a more reliable drinking water source for the Birmingham community, making it more efficient and more protective of public health.
Besides improving drinking water sources, Birmingham Water Works will also replace lead pipes and create a safer drinking water storage method. When replacing the aging infrastructure, Birmingham is expected to see 250 less water main breaks annually.
The Birmingham Water Works Board is expected to save $50 million by financing through the WIFIA loan and will yield improvements that will serve 770,000 residents of Birmingham, 15 percent of Alabama’s population and create more jobs in the region.
Congresswoman Terri Sewell was present for the announcement and spoke to the impact that this loan would have.
“Not only will this loan improve the city’s water supply and ensure safe drinking water, but it will save the city money and create more than a thousand jobs. I thank the Biden-Harris Administration for continuing to invest in the Magic City,” Sewell said.