DC Water Wins Prestigious Finance Award
May 30, 2017
Last week, DC Water was recognized by the Government Finance Officers Association (GFOA) for the Environmental Impact Bond that DC Water issued in September 2016. GFOA presented the Award for Excellence in Government Finance to DC Water for its contribution to the practice of government finance exemplifying outstanding financial management. It was the only award given at the annual conference.
The Environmental Impact Bond (EIB) follows the social impact bond model, whereby the costs of environmental projects are paid for by DC Water, but the performance risk is shared amongst DC Water and its investors. As a result, payments on the EIB may vary based on the proven success of the environmental intervention as measured by a rigorous evaluation.
This EIB is the first of its kind in the nation, and funds the initial green infrastructure project in the DC Clean Rivers Project, a $2.6 billion program to control stormwater runoff and improve the District’s water quality. The bond proceeds are being used to construct green infrastructure practices designed to mimic natural processes to absorb and slow surges of stormwater during periods of heavy rainfall, reducing the incidence and volume of combined sewer overflows (CSOs) that pollute the District’s waterways.
DC Water’s Chairman of the Board Matthew T. Brown, CEO and General Manager George S. Hawkins and Acting CFO Bob Hunt accepted the award at the GFOA annual conference, held in Denver, Colorado. “The recognition from such a prestigious organization underscores the significance of the Environmental Impact Bond model, which can be leveraged by municipalities across the continent to fund environmental programs,” said Chairman Brown.
“Innovation is key to the future of the water sector,” added CEO and General Manager George S. Hawkins. “At DC Water, we seek to infuse innovation in operations and leadership to provide the best service to our customers and the community.”
The Environmental Impact Bond also received the Non-Traditional Deal of the Year Award from The Bond Buyer in December 2016.