BY CHRISTINEVARNO
Staff Writer
OCEAN TOWNSHIP — The Ocean Township Sewer Authority received two low-interest loans last week as part of a governmental program designed to help restore wastewater and water systems.
Gov. James E. McGreevey authorized up to $800 million for the Department of Environmental Protection (DEP) and the New Jersey Environmental Infrastructure Trust (NJEIT) to provide loans for protecting clean water resources, according to a release from the Governor’s Office.
"Clean drinking water should be a basic right for all New Jersey residents," McGreevey said. "My administration will continue to fight for this right by providing funding for projects like these, preserving open space, and adopting the highest level of protections for our river and streams."
Ocean Township received a total of $3,630,000 to fund the final phase of a two-phase project that began in 2001 to undergo a major plant rehabilitation.
"We are upgrading the systems and equipment," Peter Genecki, executive director at the sewer authority, said. "Most of the equipment has been there for over 30 years."
The DEP and the NJEIT have formed a program that provides 20-year low-interest loans for projects aimed at protecting water supplies, according to the release.
"This funding underscores Gov. McGreevey’s unflagging commitment to help communities protect their critical natural resources," Bradley M Campbell, the DEP commissioner, said. "The funding will provide significant support to dozens of municipalities for projects such as repair of sewer and water systems, purchases of open space around waterways, and programs to reduce pollution runoff into water systems."
In 2001, the Ocean sewer authority applied for $7.8 million in loans from the program to start a $9.2 million project that would update the systems within the plant. In November 2002 the authority was approved and construction began.
Genecki said the current $3.6 million in loans will fund the completion of the project, which is expected to be finished in 2006. The interest rate is 2 percent..
"The money that isn’t used, isn’t drawn out [from the loan]," Genecki said. "We submit bills to the DEP. You only pay for what you use."
The program accepts applications for loans primarily from public agencies, according to the release that said private sectors are also eligible to receive loans for drinking water projects.
The sewer authority, which is regulated by the DEP, heard about the program through the DEP. The program offered two loans, one at half the market rate and the other at 0 percent interest, according to Genecki.
"That [the rates] is what is so attractive about the program," Genecki said. "It is a 20-year program and we will pay off the loan with money from our revenues."
"The work we are doing now is improvements and changes to update the equipment," Genecki said. "These [changes] will keep the plant good for another 25 to 30 years with proper maintenance. It’s better to do things ahead, before equipment starts to break."

