EPA Announces $109 Million WIFIA Loan to Increase Water Supply Reliability in Honolulu, Hawaii

WASHINGTON – Today, U.S. Environmental Protection Agency (EPA) announced a $109 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Honolulu Board of Water Supply, which serves parts of Oahu, Hawaii. This loan will help the Board design and build a large-scale reverse osmosis seawater desalination plant that will provide 1.7 million gallons of water each day to island residents while decreasing pressure on groundwater aquifers. EPA’s WIFIA loans enable communities to make critical investments in clean, safe, and reliable water to help advance EPA’s “Powering the Great American Comeback” initiative.  

“Communities across the country are facing challenges with water infrastructure—from replacing old pipes and pumps, to upgrading service to support growth, to bringing new sources of water online. EPA’s WIFIA program is a lending tool that can help communities make investments in water infrastructure that meets local needs and protects public health,” said EPA Assistant Administrator for Water Jess Kramer. “We are thrilled that Honolulu is using this $109 million WIFIA loan to create a reliable and renewable source of drinking water to benefit the community.”   

The Honolulu Board of Water Supply will use WIFIA financing for its Kalaeloa Seawater Desalination Facility Project, which will help convert abundant saltwater into clean and safe drinking water, establishing an alternative drinking water source for the island. This project includes the building of byproduct disposal facilities, a recycled water pipeline, and transmission lines. These new developments will increase supply reliability and reduce reliance on groundwater aquifers. This project will strengthen water resources in central Oahu for the more arid district that the Board serves, west of Honolulu and Pearl Harbor.   

“We are pleased to have partnered with the EPA on this WIFIA loan and appreciate their support,” said Ernest Lau, Manager and Chief Engineer of the Honolulu Board of Water Supply. “This financing will assist in constructing the first seawater desalination facility for our island community.”  

EPA’s WIFIA program provides a powerful financial tool that can significantly accelerate investments in water infrastructure to protect human health and the environment while saving communities millions of dollars. The Honolulu Board of Water Supply is opting to make the WIFIA loan a subordinate lien, which means the loan will be second to that of the borrower’s senior lien bonds, providing more repayment flexibility. Additionally, the Honolulu Board of Water Supply will utilize the ability to defer principal payments during construction to reduce impact on ratepayers.  

WIFIA funding is available to support additional water infrastructure projects: up to $11 billion is available to water systems and another $3 billion is available to State infrastructure financing authorities. EPA is currently accepting letters of interest.   

Learn more about EPA’s WIFIA Program and water infrastructure investments, including how to submit a letter of interest.    

Background    

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. The WIFIA program aims to accelerate investment in the nation’s water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.