Harwich Gets $16.7 Million Interest-Free Loan For Sewers

HARWICH – The town has received a $16,684,685 loan with zero percent interest from the Massachusetts Clean Water Trust to fund the Great Sand Lakes sewer extension project. 

 “It’s great news,” said Town Administrator Jay McGrail. “That’s a significant savings for the taxpayers.”

On June 3, the trust announced $26.7 million for three projects in the state. McGrail said with the town’s AAA bond rating, the lowest interest rate the town would have likely received when borrowing for the project would have been 3 percent.

The select board recently approved a contract with Dig It Construction for $11,631,787 for the sewer extension in the area of Bucks Pond, John Joseph Pond, Kiddies Ponds and Sand Lake, extending into the Queen Anne Road area.

McGrail said the additional funds in the loan will assist the town in paying for services not covered in the construction contract, such as police details, engineering and construction administration. A pre-construction informational meeting will be held on June 30 and construction is expected to start in mid-July, he said. 

Select Board Chair Donald Howell said the town can now pursue additional funds through the Cape and Islands Water Protection Fund for sewer projects. The town needed a project contract and approval from the state to file an application for the water protection funds, he said.

Water protection funds are generated by a 2.75 percent excise tax on lodging and short-term rentals.

The Clean Water Trust works in collaboration with the state Department of Environmental Protection to provide funding through the Massachusetts State Revolving Fund, a partnership between the U.S. Environmental Protection Agency and the commonwealth to fund water infrastructure projects.

McGrail said there are concerns that the state revolving fund, which provides the loans, will be running out of money in the near future.