Another $45 million is now available for ongoing construction work on the Arkansas Valley Conduit, the pipeline designed to bring clean drinking water to dozens of communities in southeastern Colorado.
Construction of the $1.3 billion project has been underway for several years, heading east from near Pueblo to Lamar. This new funding will get water delivery lines through the Rocky Ford area, the Southeastern Colorado Water Conservancy District, which manages the project, wrote.
The funding package that won unanimous approval from Colorado Water Resources and Power Development Authority includes 50 percent loan forgiveness, according to the district. A grant from the Colorado Water Conservation Board will cover the balance of the loan. These state agencies distribute funds from oil, gas and mineral taxes, bonds and other non-general tax sources.
“This is really a monumental moment for the AVC,” District Board President Bill Long said. “The state agencies that helped put together this package have shown real vision in working within their respective roles to make sure this vital project moves ahead.”
Funding will be accessed as construction progresses, according to Long.
The conduit project was the target of a presidential veto late last year. An effort by Congress to pass an override failed shortly after.
The bipartisan bill would have cut the portion of the federal loan interest rate paid by the district’s taxpayers and increased the repayment period to 75 years from 50 years, according to the district. So far $613 million in federal funds have been designated toward the final price tag.
“The veto did not add or remove any of the funding for the Arkansas Valley Conduit,” the district’s executive director Leann Noga said. “The AVC Project is still moving forward.”
Members of Colorado’s Washington, D.C., delegation have said they will continue to work toward passing legislation that will make repayment more affordable for their constituents in southeastern Colorado.
