$400 Million In Bonds Issued For H2O PA Water Infrastructure Projects, Deadline July 1

The Commonwealth Financing Authority has issued $400 million in bonds to fund water, water infrastructure and wastewater systems and high hazard dam projects, representing the first installment of the Commonwealth's H2O PA program, Department of Community and Economic Development Secretary George Cornelius said this week.

Applications for the next round of H2O PA funds are due by July 1, 2010.

"It's more important than ever to invest in the health and safety of our people and create the environment for economic development when the economic recovery comes," Secretary Cornelius said. "These funds will now be put to use improving water, water infrastructure and wastewater systems throughout the state."

To date, the CFA has approved 305 H2O PA projects, totaling $552 million.

The H2O PA program, Act 63 of 2008, authorized the CFA to issue up to $800 million for acquisition, construction, improvement, repair or rehabilitation of water supply, sewage disposal, storm water or flood control systems or high hazard unsafe dams. This $400 million bond issue is the first installment of H2O PA funds.

The CFA designated the bonds as "Build America Bonds" under the American Recovery and Reinvestment Act of 2009. Build America Bonds are taxable bonds with an interest rate subsidized by the federal government. Last month, Fitch rated the bonds as AA-.

Visit the Commonwealth Financing Authority webpage and search for H2o (not zero) PA for individual program guidelines.