TX: North American Development Bank to fund El Paso, Texas water project 13-July-2010

El Paso, Texas – Today the City Council of El Paso, Texas, authorized the issuance of water and sewer revenue bonds for US$15 million with the North American Development Bank (NADB) to support the replacement of the Paisiano Valley water transmission line, which runs from the Canutillo well fields to Sunset Reservoir and is a critical component of El Paso’s water system.

The bonds will be issued for a 20-year term through the Build America Bond program authorized under the American Recovery and Reinvestment Act of 2009. Under this program the federal government will reimburse the City for 35% of the interest payments on the loan. The bond proceeds will cover about 83.3% of the total cost of the project.

“The savings from the financing on this project through NADB in addition to previously financed projects through the organization will have a tremendous impact on our ratepayers," stated Ed Archuleta, president of the El Paso Water Utilities Public Service Board (PSB). “We are thankful to NADB for the opportunity.”

The line replacement, which has been divided into four phases, will be carried out by the El Paso Water Utilities (EPWU). The current project covers the first two phases, which extends from the intersection of Racetrack Drive and Torres to the American Canal. The existing 36-inch pipeline will be replaced with a 48-inch, bi-directional line to allow for additional capacity during drought conditions.

The Paisano Valley Water Project was certified by the Border Environment Cooperation Commission (BECC) on July 1st, and a US$15 million loan commitment from NADB was approved at the same time. Replacing the 60-year old waterline will minimize the potential for pipeline breaks, thereby reducing the risk of water losses, drinking water contamination, and damage from excessive water spills.

“This is the second loan we have approved for El Paso, Texas through the Build America Bond Program,” stated NADB Deputy Managing Director Hector Camacho. “We are very pleased that the City is once again taking advantage of this program and partnering with the Bank on such an important project to prevent water losses and ensure reliable water services to the community.”

In September 2009, the Bank purchased US$53 million in municipal revenue bonds from the City of El Paso, Texas, for a project to improve and expand the city’s storm water systems and thus reduce the risk of flooding. Construction of the first works under this project began this past May.

Throughout the U.S.-Mexico border region, NADB is helping finance 142 environmental infrastructure projects with approximately US$1.14 billion in loans and grants.
For more information on the NADB, visit www.nadb.org.

Contact:
Juan Antonio Flores
210-231-8000
jaflores@nadb.org

	State News

	Wednesday July 7, 2010 TX: North American Development Bank to fund El Paso, Texas water project City of El Paso, Texas to issue $15 million in bonds with NADB for the Paisano Valley Water Project Source: North American Development Bank

	El Paso, Texas – Today the City Council of El Paso, Texas, authorized the issuance of water and sewer revenue bonds for US$15 million with the North American Development Bank (NADB) to support the replacement of the Paisiano Valley water transmission line, which runs from the Canutillo well fields to Sunset Reservoir and is a critical component of El Paso’s water system. The bonds will be issued for a 20-year term through the Build America Bond program authorized under the American Recovery and Reinvestment Act of 2009. Under this program the federal government will reimburse the City for 35% of the interest payments on the loan. The bond proceeds will cover about 83.3% of the total cost of the project. “The savings from the financing on this project through NADB in addition to previously financed projects through the organization will have a tremendous impact on our ratepayers," stated Ed Archuleta, president of the El Paso Water Utilities Public Service Board (PSB). “We are thankful to NADB for the opportunity.” The line replacement, which has been divided into four phases, will be carried out by the El Paso Water Utilities (EPWU). The current project covers the first two phases, which extends from the intersection of Racetrack Drive and Torres to the American Canal. The existing 36-inch pipeline will be replaced with a 48-inch, bi-directional line to allow for additional capacity during drought conditions. The Paisano Valley Water Project was certified by the Border Environment Cooperation Commission (BECC) on July 1st, and a US$15 million loan commitment from NADB was approved at the same time. Replacing the 60-year old waterline will minimize the potential for pipeline breaks, thereby reducing the risk of water losses, drinking water contamination, and damage from excessive water spills. “This is the second loan we have approved for El Paso, Texas through the Build America Bond Program,” stated NADB Deputy Managing Director Hector Camacho. “We are very pleased that the City is once again taking advantage of this program and partnering with the Bank on such an important project to prevent water losses and ensure reliable water services to the community.” In September 2009, the Bank purchased US$53 million in municipal revenue bonds from the City of El Paso, Texas, for a project to improve and expand the city’s storm water systems and thus reduce the risk of flooding. Construction of the first works under this project began this past May. Throughout the U.S.-Mexico border region, NADB is helping finance 142 environmental infrastructure projects with approximately US$1.14 billion in loans and grants. For more information on the NADB, visit www.nadb.org. Contact: Juan Antonio Flores 210-231-8000 jaflores@nadb.org

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