PROVIDENCE – The Rhode Island Infrastructure Bank has closed on a $15 million loan to the city of Pawtucket and two loans to the city of Woonsocket totaling $5.5 million to finance drinking water infrastructure upgrades in the two cities.
The loan to Pawtucket includes a $2.25 million forgiveness of principal. The $15 million from the Drinking Water State Revolving Fund will finance water meter replacements.
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Mayor Donald R. Grebien said the Infrastructure Bank’s below-market rates will allow the city to save more than $2.8 million in interest costs over the term of the loan.
“Specifically, this loan will allow Pawtucket Water to install, at no cost to customers, advanced water meters that can detect leaks and inform customers about what they can do to better conserve water,” Grebien said.
The financing for the city of Woonsocket includes a $5 million loan from the Drinking Water State Revolving Fund and features $2 million in principal forgiveness. The loan will pay for the replacement of water meters throughout the city.
A second loan for $525,000 from the same fund features $505,000 in principal forgiveness to replace lead service lines.
Funding for these loans was made available through the Bipartisan Infrastructure Law, passed by Congress in November 2021.
“There’s nothing more basic to our city’s residents and businesses than clean drinking water, and thanks to these loans we’ll be making major investments to upgrade Woonsocket’s drinking water infrastructure,” Mayor Christopher Beauchamp said. “We will be installing … new ‘smart’ water meters. We’ll also be removing public and private side lead services from our system, addressing an important public health issue.”
Beauchamp said the low-interest loans will allow the city to save more than $600,000 in interest costs.
William Fazioli, executive director of Rhode Island Infrastructure Bank, said the bank will be making more loans and grants such as these thanks to the Bipartisan Infrastructure Law that has provided funding to the Drinking Water State Revolving Fund.
“That’s a win for residents, businesses, our cities and towns, and for Rhode Island’s economy,” Fazioli said.
