An Innovative Approach to Project Financing
By providing long-term, low cost loans, the U.S. Army Corps of Engineers through the Corps Water Infrastructure Financing Program (CWIFP), as authorized by the Water Infrastructure Finance and Innovation Act (WIFIA), enables local investment in infrastructure projects that address community water resource needs, promote economic prosperity, and improve environmental quality. Current appropriations enable the CWIFP to provide up to $7.5B+ in loans for maintaining, upgrading and repairing dams for any non-Federal borrowers. The program is open to projects or bundles of projects that have a total cost of $20M or more.
The draft rule for the CWIFP was published in the Federal Register in June 2022. “The Corps is taking a significant step to support our non-Federal partners by publishing the proposed rule for this federal credit program,” said Lt. Gen. Scott A. Spellmon, 55th Chief of Engineers and USACE commanding general. “This program will promote local investment in non-Federal dam safety projects, reducing risk to communities and providing an opportunity to address aging infrastructure needs.” Following public review, a final rule is expected to be published as soon as the Spring of 2023, allowing for the program to accept loan applications shortly thereafter.
Borrowers can realize savings of more than 20% over other financing options. Benefits of utilizing CWIFP over other financing options include:
- Lower interest,
- Consolidation of multiple projects into one loan,
- Financing previously incurred costs for planning and design,
- Long-term amortization (up to 35 years following construction),
- Flexible repayment terms with the opportunity for capitalized interest, and
- Sculpted principal repayment.
Want to know if CWIFP can work for your projects’ financing needs? Don’t hesitate to reach out to the CWIFP staff.