San Diego Borrowing $1.7B for Ambitious Water Recycling Plan

San Diego launched its application for $1.7 billion in low-interest state loans to pay for an ambitious plan to boost the city’s water independence by recycling treated sewage into drinking water.

Seeking such loans will soften hikes in sewer and water rates San Diego officials say will be necessary to pay for the Pure Water recycling system, which is expected to be complete by 2035.

San Diego; Image source: Pixabay

The loans are expected to carry interest rates of less than 2 percent, compared to about 5 percent for typical sewer and water projects that aren’t eligible for money from the state’s clean water revolving loan fund.

San Diego also has a strong chance to be eligible for $492 million in federal clean water loans if the state money proves to be inadequate to complete the project.

Those loans carry interest of rates of nearly 3 percent, so city officials say they view the federal money as a back-up plan to the cheaper state funds.

Federal officials in July notified San Diego the money had been tentatively set aside for the city.

The $1.7 billion would cover the estimated $1.3 billion first phase of the program, with construction expected to begin late next year.

The additional money is to cover potential cost overruns and design changes. Design plans for the first phase of the project are 30 percent complete, with final designs expected to be finished by next summer.

Read full article: Sand Diego Union-Tribune

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Taxonomy

• Raw Sewage Recycling
• Watershed Management
• Water Access
• Water Supply
• Integrated Urban Water Management
• Integrated Water Management
• Urban Water
• Sewage
• Water Supply
• Urban Resource Management
• Water Management
• Urban Water Supply
• Integrated Infrastructure
• Urban Water Infrastructure
• Integrated Water Resources Management (IWRM)