Colorado Water Resources and Power Development Authority
	Phone: 303-830-1550	Fax: 303-832-8205	info@cwrpda.com	1580 Logan St. 620	Denver, CO 80203

In 1989, the Colorado General Assembly established the Small Water Resources Projects Program (SWRP) within the Colorado Water Resources and Power Development Authority (the “Authority”) to finance water supply projects costing $10 million or less without legislative review and approval. In 2003, the maximum loan amount was increased to $500 million without legislative review. Loans from bond proceeds are made to local governments in three different categories: 1) investment grade borrowers, 2) non-investment grade borrowers with 1,000 or more taps if a revenue pledge or 2,500 population if a general obligation pledge, and 3) non-investment grade borrowers with more than 650 taps if a revenue pledge or 1,000 population if a general obligation pledge. Category 1 borrowers are limited to $500 million per project loan; Category 2 borrowers are limited to $2.55 million in loans; and Category 3 borrowers are limited to $1.785 million in loans. For 2007, borrowers’ costs of issuance (excluding general counsel and bond counsel opinion costs), up to $250,000, are paid by the Authority. Interest rates are established by the current market rate for insured, “AAA”-rated bonds. The Authority covers all annual costs for trustee, paying agent, registrar and arbitrage rebate calculations.

ELIGIBLE PROJECTS:

Water and wastewater treatment plants (all sewerage facilities), pump stations, dams/reservoirs, water rights, pipelines, hydro-electric projects, wells, meters, reuse, storage tanks, etc.

Note: All cost of project development may be financed through the Small Water Resources Program.

PROCESS:

- Applications are sent directly to the Authority.

- If the project involves raw water collection or storage, the application is forwarded for informational purposes to the Colorado Water Conservation Board.

- The Authority’s staff analyzes the borrower’s financial creditworthiness and prepares a credit report. The staff also establishes the borrower’s category and determines eligibility based on a set of criteria provided by the bond insurer.

- The application and credit report are sent to FGIC, the bond insurer, for review and approval/denial.

- Upon approval, FGIC sends a commitment letter to the Authority.

- The borrower’s credit report is then submitted to the Authority’s Project Finance Committee and (upon favorable recommendation) to the Board of Directors for approval.

- Since this is a “pooled” program (multiple borrowers in one bond issue), the timing of the bond issue is not fixed until a sufficient size has been achieved. Once this size is achieved the Board of Directors authorizes staff to schedule a bond issue and to negotiate loan agreements. If timing is critical, interim financing may be available.