The Texas Water Development Board recently approved an up to $1.8 billion State Water Implementation Revenue Fund for Texas (SWIRFT) bond issue. This funding will be used to finance local water projects across the state, including seawater desalination in Corpus Christi and a reservoir and pump station expansion in Brazoria County. These projects are crucial for ensuring access to clean water for local communities and industries.
One of the key projects that received approval is the construction of the state’s first seawater desalination plant for municipal use in Corpus Christi. The project is expected to produce about 30 million gallons of potable water daily, addressing the growing water needs of the region. Additionally, the Brazosport Water Supply Corporation, created to provide water supply service to entities in Brazoria County, also received multi-year financing approval.
One unique aspect of the financing is the involvement of private entities, such as The Dow Chemical Company, in funding water supply projects. The Brazosport Water Supply Corporation’s financing is backed by Dow, marking a shift from the traditional model of municipalities funding water projects through ratepayers. This partnership model sets a precedent for other private entities across the state to seek funding for water infrastructure projects.
The SWIRFT program’s triple-A ratings and interest rate subsidy play a crucial role in incentivizing local governments to undertake water projects recommended in the state water plan. The bond issue, scheduled to be priced in September, will involve tax-exempt and taxable SWIRFT Master Trust bonds. The financing for the projects will be spread out over multiple years to ensure the successful implementation of the desalination plant and pump station expansion.
The water projects approved by the Texas Water Development Board aim to address pressing water challenges faced by communities in Texas. With extended drought conditions and increasing water demands, these projects are essential for ensuring water security and reliability in the state. By investing in infrastructure now, Texas is preparing for future water needs and mitigating the risks associated with water scarcity.
The approval of the $1.8 billion bond issue for water projects in Texas signifies a significant step towards ensuring access to clean and reliable water for communities and industries. The involvement of private entities in funding water infrastructure projects opens up new opportunities for collaboration and innovation in addressing water challenges. As Texas continues to grow and develop, investments in water infrastructure will be crucial for sustaining the state’s economic prosperity and environmental wellbeing.