Ontario launches $1 billion loan program for municipal water infrastructure

Ontario Construction News staff writer

Infrastructure Ontario is now accepting applications for the new loan program funding program for municipalities upgrading water infrastructure.

Ontario is launching a new program to support municipalities in upgrading water infrastructure to enable the construction of new homes. The Housing-Enabling Water Systems lending stream, announced last Thursday (Nov. 28), will provide up to $1 billion in loans for projects related to drinking water, wastewater, and stormwater systems.

“The OSWCA welcomes the Ontario government’s investment of up to $1 billion in housing-enabling infrastructure,” said Stephanie Bellotto, Manager of Government Relations and Communications, Ontario Sewer and Watermain Construction Association (OSWCA). “This funding will provide an additional boost to help municipalities continue to build their water, wastewater, and stormwater capacities to support growing populations, maintain their assets in a state of good repair, and build new homes for thousands of families.”

The lending stream, part of Infrastructure Ontario’s broader loan program, will offer municipalities, including those in rural and northern areas more flexible loan terms, deferred interest payments during the construction phase and longer repayment terms of up to 40 years. They will also incur lower administration costs and have more flexibility with repayment schedules.

“The affordable, long-term financing available through IO’s lending program has supported over 3,800 infrastructure projects valued at more than $22 billion,” said Michael Lindsay, president and CEO of Infrastructure Ontario. “This new lending stream will help municipalities meet the growing demand for housing by enabling critical water infrastructure projects.”

The government has also announced about $2 billion through the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Program to support municipalities in delivering the core infrastructure needed to build more homes.

“We continue to hear from our municipal partners that one of the greatest barriers to building more homes is the need for new and expanded drinking water, wastewater, and stormwater management facilities,” said Minister of Infrastructure Kinga Surma, adding the new program addresses one of the biggest barriers to housing development across the province “This financing option will help municipalities expand their water capacity, paving the way for more homes across the province.”

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