The Guam Waterworks Authority has cleared its final hurdle for new bond funding, with the Public Utilities Commission giving the green light last week.

GWA plans to issue bonds in July to fund capital improvement projects, including efforts to meet environmental regulations for contaminants like PFAS and Dieldrin.

The PUC approved up to $350 million, but GWA expects to issue around $275 million, $250 million of which will go toward construction. The remaining funds will support reserves and other bond-related costs.

The total interest cost is projected at 5.14%, slightly higher than past bond deals, but still within range of recent government borrowing, according to officials.

To ease the impact on ratepayers, GWA will pay only interest for the first five years. Principal payments will be deferred to allow rate increases to catch up.

While a law passed last year also allowed for short-term financing through tax-exempt commercial paper, GWA says market conditions have delayed that option for now.