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NEWS RELEASE 1303
SW First American Place, Suite 100, Topeka,
KS 66604-4040 |
FOR IMMEDIATE RELEASE – March 15, 2004
Contact- Harold Alford (785) 271-2701
USDA ANNOUNCES $385 MILLION IN ELECTRIC LOAN GUARANTEES
TOPEKA- USDA Rural Development State Director Chuck Banks announced today the selection of two Kansas rural electric cooperatives to receive $15.679 million in loan guarantees for improvements to better serve their customers.
The funding announcement was part of USDA Secretary Ann M. Veneman’s approval today of 28 rural electric guaranteed loans totaling nearly $385.6 million to expand rural electric infrastructure located in 16 states. “Expansion of rural infrastructure is a first step in opening the door for expanded rural economic development and improved quality of life for rural residents,” said Veneman. “These projects will serve 62,980 future customers, build 4,300 miles of new line and fund general system-wide modernization.”
“USDA Rural Development is pleased to announce the selection of loan guarantees to D.S. & O. Rural Electric Cooperative Assoc. (Solomon, KS) for $5.2 million and Pioneer Electric Cooperative (Ulysses, KS) for $10.479 million. The funds will be used by these two rural electric cooperatives to build new distribution lines and make other important system upgrades, resulting in better service to their valued customers,” commented State Director Banks
Through USDA Rural Development’s utilities program, loans and loan guarantees are made to finance the construction or replacement of electric transmission and generation facilities. In fiscal year 2003, the Bush Administration invested over $6.3 billion in grants, loans and loan guarantees to support the development and/or improvements to rural electric, telephone and water/wastewater infrastructure that will help to create or save an estimated 150,000 jobs.
The loans announced today include 25 distribution projects and three transmission and generation ventures. The generation and transmission loans will finance construction of new substations, provide for transmission line and substation changes, build 14.8 miles of 69kV transmission line, and make other needed modernization changes. The construction aspect of these loans will create or save an estimated 8,900 jobs while opening the door for economic development in hundreds of rural communities. The private capital leveraged by these loans is expected to nearly double the number of jobs to be saved or created.
USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, the Agency provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.
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