CAPE MAY WATER TREATMENT PLANT REPLACEMENT

Cape May City recently closed on a $14 million loan with the New Jersey Water Bank to finance critical upgrades to the Cape May City Water Treatment Plant, including the construction of a new 3.0 million-gallon-per-day (MGD) desalination treatment facility and a 1.0 MGD iron removal treatment facility at the existing plant site.

Because the city qualifies under the New Jersey Water Bank's affordability criteria and the project advances important clean water objectives, the city is expected to receive an estimated $3 million in principal forgiveness at long-term closing. This amounts to approximately 21% of the total project cost, substantially reducing the financial burden on the community.

The project will help ensure a reliable supply of safe drinking water for the residents of Cape May City, the Borough of West Cape May, the Borough of Cape May Point, portions of Lower Township, and the United States Coast Guard Training Center Cape May (TRACENCM), the Coast Guard's only enlisted accession point and recruit training center.

Cape May's existing water system faces challenges meeting peak seasonal demand during the summer months and is currently unable to satisfy DEP firm capacity requirements. The new treatment facilities will significantly increase the system's reliability and resiliency while providing the capacity needed to meet current and future water demands.

The desalination and iron removal facilities will modernize the city's drinking water infrastructure, improve water quality, and strengthen the region's ability to provide uninterrupted service during periods of high demand. The project represents a major investment in the long-term sustainability of Cape May's water supply and the continued protection of public health and economic activity throughout the region.