Sacramento County officials expect to save “at least a half billion” dollars on a major sewer project, thanks to a lower interest financing plan approved by state officials this week.
The Sacramento Regional County Sanitation District received approval this week for $1.6 billion in financing through the California Clean Water State Revolving Fund program. The funding will help pay for the estimated $2 billion “EchoWater Project,” which is being built to improve water treatment standards approved by the state several years ago.
The financing program is expected to lower costs “through favorable terms for interest rate and loan term,” according to a sewer district news release.
District engineer Prabhakar Somavarapu estimated that the program will bring “at least a half billion in savings over the life of the loan compared to traditional bond funding.”
The district provides wastewater treatment and disposal for households and businesses in Sacramento County and West Sacramento, serving about 1.4 million people.
The EchoWater Project is facing delays because a Superior Court judge recently halted it in response to a complaint from a contractor alleging an illegal contract award. The judge said there was a good chance that the district violated state contract laws by awarding part of the contract to a firm that bid $14 million more than the low bidder.
Call The Bee’s Brad Branan, (916) 321-1065. Follow him on Twitter @BradB_at_SacBee.