HARRISBURG, Jan. 25, 2012 – The City of Lock Haven has been approved for an $28 million low-interest loan along with $10 million in principle forgiveness to construct a modern sewage treatment plan, state Sen. John Wozniak and state Rep. Mike Hanna announced today. The loan and principal reduction come in conjunction with a $4 million state grant that will fund nearly all of the $32.6 million project.
“The new sewer plant is a critical improvement for the residents of the region and to the entire Susquehanna watershed,” Wozniak said. “In addition to preserving the environment, the loan and grants will cut the price in half for residents and provide an economic boost to the region.”
The city’s current sewage treatment facility is nearly 60 years old and has been unable to treat waste in accordance with modern environmental standards. The new plant, which will serve nine municipalities, will be able to treat as much as nine million gallons per day.
“While protecting the environment is the main motivation for the project, economic development will be a tangible side effect,” Hanna said. “More than 30 people will be employed in construction and hundreds more jobs will be preserved in the region. When it’s completed, quality infrastructure will attract quality employers to the region.”
The impact of the project will spread well beyond the city and the other municipal customers, Wozniak said.
“The Susquehanna River is an important economic development and tourism feature of the region,” Wozniak said. “Residents all the way downstream to the Chesapeake understand the need for keeping this waterway healthy for generations to come.”
Lock Haven’s current treatment plant discharges into Bald Eagle Creek, a tributary of the Susquehanna. The project will bring the city into compliance with the National Pollution Discharge Elimination System.
Residents served by the system have incomes far below the state median, according to the Pennsylvania Infrastructure Investment Authority (Penn VEST) which authorized the loan at a meeting today. Construction is expected to begin next month.