Keep Funds Flowing: WIFIA powers wastewater upgrade in Lake Oswego
December 15, 2025
AWWA Articles
Keep Funds Flowing: WIFIA powers wastewater upgrade in Lake Oswego
When Lake Oswego’s wastewater treatment plant, built in the mid-1960s, approached the end of its useful life, city leaders faced a critical decision: retrofit the aging facility or build a new one. After careful analysis, it was clear that constructing a new plant would be more cost-effective.
Since, the city in northwestern Oregon has worked on preliminary designs, permitting, and cost-forecasting to make this vision a reality. Now, thanks in part to a loan through the Water Infrastructure Finance and Innovation Act (WIFIA), the project is moving forward. The city recently closed on a $123 million WIFIA loan — one of a few utilities able to do so in 2025.
“This loan means a lot to the city,” said Stefan Broadus, director of special projects at the city of Lake Oswego’s Public Works. “It helps us pay for this huge capital expense without an abrupt and significant rate increase to the community. We’re able to use a slow and steady rate increase model, which is really huge as far as affordability for the community goes.”
WIFIA provides long-term, low-cost loans that allow utilities to tackle large-scale, long-term projects that update infrastructure and ensure safe, compliant water operations. American Water Works Association is elevating the impact of WIFIA funds through stories and outreach.
In Lake Oswego, the new wastewater plant will benefit the environment and surrounding communities for decades to come.
“This plant helps us meet our commitment to being good stewards of the land and continuing to ensure our wastewater effluent meets or exceeds state standards for discharge,” Broadus said. “We’re very proud of those things.”
The project’s design-build phase is underway, with groundbreaking expected in late 2026 or early 2027. Construction could take two to three years, with the new facility projected to come online by 2030. The estimated total cost is between $200 million and $225 million.
By providing low-cost financing for large infrastructure projects, WIFIA enables communities like Lake Oswego to invest in critical upgrades without compromising affordability or sustainability. As Broadus put it, “I’m very honored and feel quite lucky to have been one of those that have gotten a loan.”
Has your utility received a WIFIA loan for an infrastructure project? If AWWA can feature your project in its advocacy efforts, please fill out this form.
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