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"The money (for the glycol plant) is to come from a $25 million revenue bond RIAC is looking to secure from the Rhode Island Clean Water Finance Agency. The agency would enable RIAC to borrow the money at several interest points lower than open market rates, thereby saving a substantial amount in interest payments over the life of the bond."

Does anybody know who will pay the subsidy? The cities and towns with Warwick paying 20% of the subsidy...

Clean Water passed on this application from RIAC because RIAC did n ot complete the part of the loan application that discusses whether it has the power to borrow the money. The fact is RIAC does not have that power. Clean Water's annual report says only cities and towns and sewer districts can borrow money from them. Clean Water's financial advisor has been sued by RI Economic Development over the 38 Studios disaster.

RIAC is going to have to go to EDC for the funds, a bond issue that would be well over $30 million given the prices that bidders have presented to builld the plant. This amount exceeds the state Kushner authorization and will probably trigger a hearing at the General Assembly.

From: Airport ‘surprises’ may inflate costs

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