San Diego secures $240.6 million loan for dam improvement projects

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California Construction News staff writer

The U.S. Army Corps of Engineers has selected the City of San Diego for $240.6 million in low-cost loan financing for dam improvement projects, including replacement of the Lake Hodges Dam. Funding comes through the Corps Water Infrastructure Financing Program, a new federal initiative for maintaining, upgrading, and repairing non-federal dams.

“The Bipartisan Infrastructure Law continues to benefit San Diego. I want to thank the Biden-Harris Administration for this crucial funding, which will help us build a new dam at the Lake Hodges Reservoir,” said Mayor Todd Gloria. “Ensuring the safety of our infrastructure and reducing costs for our ratepayers are top priorities.”

San Diego is one of 18 cities nationwide selected in this inaugural funding round. The $240.6 million will facilitate the construction of a new roller-compacted concrete dam located about 100 feet downstream from the existing structure. The new dam will meet current safety standards and address water-supply and operational needs.

The Lake Hodges Dam, which is over a century old, is one of 42 dams in California with restricted water storage.

In the coming year, the city will work to finalize an agreement with the U.S. Army Corps of Engineers to proceed with the project.

The CWIFP offers benefits to projects that must be creditworthy, technically sound, economically justified, and environmentally acceptable; cost at least $20 million; comply with federal laws and regulations; and have public sponsorship if undertaken by a private entity.

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