Press Releases

Louisiana Bond Commission approves major loan for the Sewerage and Water Board to make critical sewer repairs in New Orleans East

For Immediate Release: Friday, September 20 2019

The State Bond Commission approved on Thursday, Sept. 19, 2019 the Sewerage and Water Board of New Orleans’ (SWBNO) request for funding to complete critical sewer repairs in New Orleans East.

The commission’s decision allows SWBNO to borrow up to $25 million from the federally funded Clean Water State Revolving Fund, which is administered by the Louisiana Department of Environmental Quality. The loan will carry a low interest rate of less than 1 percent.

SWBNO will use the new funding for sewer repairs in the South Shore Basin, which is generally bounded by the Inner Harbor Navigational Canal, Lake Pontchartrain, Paris Road and Interstate 10, allowing the utility to continue to meet its obligations under the sewer consent decree with the U.S. Environmental Protection Agency and the U.S. Department of Justice.

“Every day, we work to put this utility on sounder financial footing, all while continuing to prioritize the health and safety of New Orleanians,” said SWBNO Chief Financial Officer Yvette Downs. “We’re grateful to the bond commission and all our partners for helping us continue to move in the right direction.”

SWBNO entered into that federal agreement in 1998 to rehabilitate New Orleans’ entire sewerage system. The consent decree was modified three times in 2010, 2013 and 2014. Under the latest version, these South Shore Basin projects must be completed by October 2021.

The commission’s decision was preceded by approval from SWBNO’s Board of Directors, the New Orleans Board of Liquidation, City Debt, and the New Orleans City Council.

 

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