The loans are being issued via the Water Infrastructure Finance and Innovation Act.
Cheryl Norton, President of Missouri American Water, said: “These low-interest loans are a great mechanism to allow us to start and complete critical projects with better financing than previously available, all to benefit our customers.”
The two programmes to be deployed include:
The Water Main Replacement and Lead Abatement Programme to replace approximately 100 miles of distribution pipes serving 20,000 residential metering points and hundreds of businesses, schools, hospitals, and other public buildings.
The project aims to reduce water leaks and to eliminate the risk of lead leaching into the drinking water through the replacement of aging water infrastructure in St. Louis County.
In Joplin, Missouri American Water will address the critical and growing water supply shortage by building a dam that will hold approximately 12 billion gallons of water.
The two projects are expected to costs $84 million and $103 million, respectively.
“These projects will ensure continued access to clean, safe, award-winning water for our customers in St. Louis County and Joplin. They will also provide for jobs and investment in these communities.”
In total, EPA will be providing up to $5 billion in loans to help finance over $10 billion in water infrastructure investments and create up to 155,000 jobs via the WIFIA programme.
A total of 30 projects submitted bids to receive the funding.