Environmental Infrastructure Bond Sale Providing Funds for 36 Clean and Drinking Water Projects

Loan rates will be as low as 0.9%

TRENTON - Robert A. Briant, Sr., Chairman of the New Jersey Environmental Infrastructure Trust (NJEIT) today announced the sale of over $67 million in bonds to help finance 36 environmental protection projects worth more than $203.8 million at the lowest interest rates in the Program’s history.  These projects will provide new or upgraded drinking water and wastewater treatment and conveyance systems as well open space preservation.  A list of this year’s borrowers with project descriptions is provided below.

The sale was completed in two series:

Series 2009A - $61,945,000 :  Interest Rate – 3.523415%

Series 2009C - $5,600,700 :  Interest Rate – 5.234536%

"Including this bond sale, the Environmental Infrastructure Financing Program has provided low interest long-term loans to more than 675 projects in New Jersey, representing a total loan amount in excess of $4.6 billion." Briant stated. “Not only will this financing lead to water quality improvements throughout the State of New Jersey but given the current economic situation, the thousands of jobs required to construct these projects will serve as an important component of New Jersey economic recovery,” noted Briant. This bond sale marks the 23rd consecutive year the Trust has sold bonds to finance needed infrastructure projects in New Jersey.

Dennis Hart, the NJEIT’s Executive Director, stated that today’s sale is the first of two bond sales scheduled to finance clean and drinking water infrastructure projects in the 2009 New Jersey Environmental Infrastructure Financing Program (NJEIFP). The second sale is anticipated to occur in February of 2010. Included with the source of funding for these environmental improvement projects is $200 million of stimulus funds from the American Recovery and Reinvestment Act 2009 (ARRA).

Recent estimates indicate a current need for over $21 billion in funding for wastewater and drinking water projects across New Jersey. The Financing Program's loans, which are 75 and 50 percent below market rates, can provide substantial cost savings to municipalities and authorities. These savings are passed along to taxpayers and ratepayers.

"Our goal is to keep costs as low as possible for those responsible for protecting New Jersey's water resources. Our AAA bond rating from Fitch Ratings, Moody's Investor Service and Standard & Poor’s makes our loans a very safe alternative to traditional market-rate financing," Briant said. "This high rating attracted 7 bidders in the Series A bond sale."

The NJEIFP is a partnership between the New Jersey Environmental Infrastructure Trust and the New Jersey Department of Environmental Protection that combines interest-free loans from State Revolving Funds with market rate loans from the sale of Trust bonds. Certain projects funded in this bond sale receive up to 50 percent principal forgiveness and one-half market rate financing for the remaining portion of the project cost.  Other projects funded in this bond sale receive loans ranging from one-quarter to one-half of the prevailing market rate. Proceeds from today’s bond sale will be combined with New Jersey Department of Environmental Protection zero percent State Revolving Funds to provide project loans between 0.9 percent and 1.76 percent.

To learn more about the New Jersey Environmental Infrastructure Trust visit www.njeit.org.

NJEIT 2009 Financing Program
Borrowers, Loan Amounts and Project Descriptions

Clean Water Projects
Bayonne Municip. Util. Auth. $2,628,800 (1) Project - Installation of 850' storm water sewer system w/ catch basins, pump station and 945' force main;

Beach Haven Borough  $4,082,251 (1) Project - Installation of 2,500 residential water meters;

Berkeley Heights Township $1,802,980 (1) Project - Installation of de-nitrification, improve sludge digestion and rehabilitation of other processes to wastewater treatment facility;

Bridgeton City $3,167,600 (1) Project - Construction of new radium removal treatment plant;

Elizabeth City - $7,052,661 (1) Project -  Installation of 3,502' Storm sewers, 1,300' storm conduit, and catch basin upgrades;

Harrison Town - $3,593,485 (1) Project -  Installation of 733' sanitary sewer extension and 3,300 storm sewer and sanitary sewer improvements;

Hudson County Improv. Auth. (Advance) - $15,022,393 (1) project - Site remediation including installation of environmental cap;

Hudson County Improv. Auth. (Bayonne Crossing) - $17,375,060 (1) Project - Site Remediation including cap and wastewater collection and soil venting system;

Linden City - $1,602,480 (1) Project - Installation of active gas extraction, collection and control system at landfill;

Long Beach Township - $375,000 (1) Project) - Replacement of 3,900' gravity sewer main and manholes;

Medford Township - $3,875,000 (3) Projects - Various upgrades to sewage treatment facility;

Merchantville Borough - $1,786,000 (1) Project - Sanitary sewer system rehabilitation including including relining of 55,500' of sewer lines and manholes;

Middlesex County Util. Auth.  SUPP - $24,184,796 (1) Project - Construction of three (3) new landfill cells at existing landfill;

Middlesex County Util. Auth. SUPP - $19,464,742 (1) Project - Construction of 4,000' tunnel for two 60" force mains under the Raritan River;

Mount Laurel Twp Munic. Util. Auth. - $4,438,400 (1) Project - Installation of a 529 kw photovoltaic generation system to offset cost of sewage pump station operations;

Newark City - $12,873,134 (1) Project - Rehabilitation of brick sewer system including sewer relining 12,000' combined sanitary storm sewers;

Newark City - $5,256,860 (1) Project - Construction of solid floatable control facilities at two outfall locations;

North Hudson Sewage Auth. - $11,098,000 (1) project - Wastewater treatment facility improvements, outfall rehabilitation, and security upgrades;

Ocean County Util. Auth. - $10,703,049 (3) Projects - Various wastewater treatment facility improvements, rehabilitation of existing ocean outfalls, and installation of SCADA system;

Oceanport Borough (NJSEA) - $22,513,039 (1) Project - Rehabilitation of existing storm water improvement system;

Pompton Lakes Bor. Municip. Util. Auth. - $2,817,188 (1) Project - Improvements to wastewater treatment facility;

Red Bank Borough - $2,720,303 (1) Project - Improvements to two wastewater treatment facilities;

Somerset Raritan Valley Sewerage Auth. - $5,089,774 (1) Project - Installation of 4,300' wastewater treatment facility outfall;

Stony Brook Regional Sewerage Auth. - $3,313,831 (1) Project - Replace mechanical surface aerators at wastewater treatment facility; and

West Milford Township Municip. Util. Auth. - $4,726,000 (1) Project - Improvements to wastewater treatment facility.

Drinking Water Projects
Aqua New Jersey, Inc. - $1,177,000 (1) Project -  Installation of Radium Removal System at Well #12, Hamilton (Mercer County);

Atlantic City Munic. Utilities Auth.  - $3,096,156 (2) Projects –Replacement of concrete cradles and 1,640 ' Water Main Replacement;

Bridgeton City -$500,000 (1) Project – Construction of a water storage tank and reservoir rehabilitation;

Harrison Town - $720,011 (1) Project - 626' water main to serve the Harrison Commons redevelopment;

Hudson County Improv. Auth. (Advance) - $1,820,154 (1) Project - 2167' potable water mains;

Newark City - $4,933,138 (1) Project - Rehabilitation of cleaning and lining of 85,000' cast iron water distribution mains.