Corpus Christi Approves Seawater Desalination Project Funding

Strategic Insights -

The City of Corpus Christi, Texas has taken a significant step forward in its Seawater Desalination Project, with the City Council approving the issuance of Utility System Revenue Improvement Bonds as security for a loan from the Texas Water Development Board (TWDB). This move is part of the City's plan to secure up to $222.5 million through the TWDB's State Water Implementation Fund for Texas (SWIFT) loan program. The loan will be used to fund design and construction of a Seawater Desalination Facility, providing a future potable water supply for all customers.

Key Takeaways:

  • The City of Corpus Christi has approved the issuance of Utility System Revenue Improvement Bonds as security for the first portion of a loan from the Texas Water Development Board (TWDB) for the Seawater Desalination Project.
  • The City will use $11.4 million of the loan to cover costs for environmental data analysis, permits, and other planning tasks.
  • The City Council's decision on using the first portion of the $11.4 million loan will not lead to higher water utility rates.
  • The City will receive a 20% reduction in interest compared to traditional financing methods, resulting in a final interest rate of 1.996% and a savings of $1.5 million over the life of the bonds.

Statistics:

  • $222.5 million: The amount the City of Corpus Christi has been approved for through the TWDB's State Water Implementation Fund for Texas (SWIFT) loan program.
  • $11.4 million: The amount the City will use from the loan for environmental data analysis, permits, and other planning tasks.
  • 1.996%: The final interest rate guaranteed to the City.
  • 64 basis points: The reduction in interest rate compared to traditional financing methods.
  • $1.5 million: The savings in interest over the life of the bonds.

Sources:

  • "City Council Approves Funding for Seawater Desalination Project" (Source: City of Corpus Christi, no date).
  • "Texas Water Development Board (TWDB) State Water Implementation Fund for Texas (SWIFT) loan program" (Source: Texas Water Development Board, no date).