NJ I-Bank Project of the Week: NJ Water Supply Authority D&R Canal Dredging

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NJ I-Bank Project of the Week: New Jersey Water Supply Authority D&R Canal Dredging Project. Authority receives $36,844,043 in Water Bank loans. Estimated savings to ratepayers of $5,879,183.

The NJ Water Supply Authority (NJWSA) recently completed clean water improvements that are being funded with approximately $37 million in loans from the NJ Water Bank, a joint low-rate financing program jointly administered by the DEP and the NJ I-Bank. Total savings for this project is estimated to be $5,879,184 over the 20-year term of the loan or 16% of the total project cost. In addition, this project created an estimated 44 direct construction jobs.

This canal dredging project removed approximately 182,488 cubic yards of sediment from a 10-mile segment of the D&R Canal between Route 27 and Amwell Road in Franklin Township, Somerset County. The purpose of the project was to improve water quality and maintain hydraulic capacity by removing accumulated sediment, aquatic growth, and debris. Dredging the canal reduced the velocity, sediment resuspension and raw water turbidity of the canal which functions as a major source of drinking water in the State.

Phillip Kramer, Mayor of Franklin Township, noted the limited direct benefits of the dredging project to residents in his Township. Nonetheless, he recognized that “The canal is a reservoir and drinking water source for 1 million people in central New Jersey. Because the project was beneficial to so many people, we worked together with the Authority to complete the project as efficiently as possible. In return, the NJWSA agreed to mitigate for property damages created by the project, and everything was restored as promised. As a result, we are glad the project was a success: drinking water improved, jobs created, and ratepayers throughout the State saved money with strategic financing through the NJ Water Bank.”

This project was designed by Urban Dredging Consultants Joint Venture and Dredged by JF Brennan Inc.

July 20, 2022