Regina and Moose Jaw plan to ask for $45M loan for upgrades to water treatment plant
Accelerated upgrades expected to cost about $50M between 2017 and 2019
A $45-million loan will be needed for accelerated upgrades to the Buffalo Pound Water Treatment Plant, according to a Regina city hall report.
The loan would go toward the costs of upgrading the plant's aging infrastructure, which is expected to cost about $50 million.
The expenditures would be incurred between 2017 and 2019.
"Recent electrical failures have raised the issues and potential impacts of the Cities' dependency on the Plant," the report says.
The plant provides drinking water to both Regina and Moose Jaw.
The money would be borrowed from the Bank of Montreal by the water treatment plant corporation and the City of Moose Jaw, on behalf of the City of Regina.
Regina would cover $33.3 million, plus any additional costs and interest.
The loan would decrease the room available for Regina's debt limit, but the report concludes there is a "high likelihood" the loan will be repaid.
If the executive committee approves the recommendations, they will be forwarded to city council at the end of the month for final approval.