EPA loans Board of Water Supply $109M for Oahu desalination plant

Environmental Protection Agency has awarded a $109 million loan to help t Board of Water Supply build a large-scale seawater desalination plant that has been decades in the ...

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Six Flags reopening 'Governor gap' races Cornell rape case latest The Honolulu Star EPA loans Board of Water Supply $109M for Oahu desalination plant Chloe Jones, The Honolulu Star-Advertiser Fri, October 16, 2026 at 9:35 PM UTC 2 min read Add Yahoo as a preferred source to see more of our stories on Google.

Environmental Protection Agency has awarded a $109 million loan to help the Honolulu Board of Water Supply build a large-scale seawater desalination plant that has been decades in the making.

The plant, planned for West Oahu, is designed to provide 1.7 million gallons of drinking water daily through a reverse osmosis desalination process, which uses high pressure to separate brine and water from seawater through a membrane.

The loan is funded through the Water Infrastructure Finance and Innovation Act, which "enables communities to make critical investments in clean, safe and reliable water," the EPA said in a news release.

"Communities across the country are facing challenges with water infrastructure — from replacing old pipes and pumps, to upgrading service to support growth, to bringing new sources of water online.

EPA's WIFIA program is a lending tool that can help communities make investments in water infrastructure that meets local needs and protects public health," EPA Assistant Administrator for Water Jess Kramer said in the release.

"We are thrilled that Honolulu is using this $109 million WIFIA loan to create a reliable and renewable source of drinking water to benefit the community." The financing will go toward the Board of Water Supply's Kalaeloa Seawater Desalination Facility Project, "which will help convert abundant saltwater into clean and safe drinking water, establishing an alternative drinking water source for the island," the release said.

"We are pleased to have partnered with the EPA on this WIFIA loan and appreciate their support," BWS manager and chief engineer Ernest Lau said in the release.

"This financing will assist in constructing the first seawater desalination facility for our island community." Byproduct disposal facilities, a recycled water pipeline and transmission lines are some of the developments planned for the project, the release said.

The goal is to increase water supply reliability and reduce Oahu's reliance on groundwater aquifers.

The loan is a "subordinate lien," which means the loan will be second to the Board of Water Supply's senior lien bonds and will provide more repayment flexibility.

The agency will also defer principal payments during construction to reduce the impact on ratepayers, the release said.