The borough municipal authority will receive a $5.05 million PennVEST loan to expand and upgrade its drinking-water treatment plant and install some new distribution lines to replace old, leaking ones.

The loan was announced Wednesday by Gov. Tom Corbett. It was among $115 million in loans and grants awarded for both drinking water and wastewater projects in 17 counties throughout Pennsylvania.

No new rate increases will be needed to repay the loan, borough Manager Dan Penatzer said. Water rates were increased a year ago, with the revenue reserved for the project, he said.

To apply for the loan, the borough and its authority had L.R. Kimball, consulting engineers, design the project, Penatzer said.

“The next step will be the bidding, which should be done by the fall. The project should be completed by the end of the year,” he said.

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