News Release

Contact: Kevin Herglotz, (202) 720-4623
kevin.herglotz@usda.gov
Tim McNeilly, (202) 690-0498
tmcneill@rdmail.rural.usda.gov

TEXAS COMMUNITIES GET TENTATIVE APPROVAL ON $20 MILLION WATER PROJECT

     LUBBOCK, TEXAS, August 14, 2001--Agriculture Secretary Ann M. Veneman today announced the pending approval of $20 million in loan and grant funds ($10 million loan/ $10 million grant) for the construction of a new source of water for the city of Abilene and neighboring communities.

     “Abilene, along with its neighboring communities, have brought to USDA a funding proposal that embraces the idea of working together, through a rural-urban partnership, to find a cost effective way to meet the overall needs of its residents,” said Veneman.

     Officials from the City of Abilene, while not an eligible area for funding, requested on behalf of the 12 rural communities USDA funds to assist in the construction of a 51-mile water transmission line from Lake O.H. Ivie to the city’s water treatment facility. The improvements are expected to provide over 14,000 rural water customers in 12 neighboring rural communities with a new source of safe, clean water.

     Veneman noted that a final approval on the loan/grant application is expected upon completion of an environmental review, which can come as early as the end of August in 2001. “Once the environmental review is complete, Abilene can expect the ‘green light’ to move forward with their water improvements.”

     The USDA funds will be used to construct a proportionate share of the project, enabling the neighboring small rural communities to have a dependable source of clean safe drinking water. USDA water and waste-water loan and grants funds for are made available to rural areas and towns with populations of 10,000 or less. Funds are administered through the Rural Utilities Service (RUS), an agency within USDA Rural Development.

     USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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