Two-minute impact
The $966 million from the Texas Water Development Board through the State Water Implementation Fund for Texas, or SWIFT, program, a state financial assistance loan program for Texas water projects, will be used for the planning, design and construction of the project, according to the news release.
The project will help rehabilitate the 70-year-old purification plant located on Federal Road in east Houston that serves 1.9 million residents, according to previous Community Impact reporting. The facility is at risk of failing and has an estimated service life of one to two years. Although the facility has the capabilities to pump up to 362 million gallons of water a day, it is only able to pump an average of 239 million gallons a day currently.
The project is anticipated to begin construction in 2029 and be completed by 2034, with the cost of the project expected to be between $3 billion and $4.2 billion, according to previous reporting.
What’s next?
The city is also applying for the Water Infrastructure Finance and Innovation Act program for $2 billion in funding support, a federal credit program administered by the Environmental Protection Agency for eligible water and wastewater infrastructure projects, according to the EPA.
The city will also utilize $1.1 billion in revenue bonds and a local contribution from the city of Houston for $45 million, according to previous reporting. As of July 28, $2.1 billion has been raised for the project so far from the SWIFT program, the city and revenue bonds.
The project is expected to raise water bills, according to previous reporting. City Council approved a comprehensive rate study, which is expected to be completed in a year, during a May 7 meeting to help the city and residents understand future rate increases over the next five to 10 years.
