Richmond Hill was awarded a nearly $1.9 million loan for the upgrade and expansion of its wastewater treatment plant, Georgia Environmental Finance Authority (GEFA) announced.

In a press release issued Tuesday afternoon, GEFA said the $1.9 million loan is for rehabilitating four pump stations as the city works toward a nearly $22 million expansion and upgrade of the plant.

The loan was granted under the federal Clean Water State Revolving Fund (CWSRF), which is administered by GEFA. As a “green project,” up to $687,500 of the loan principal will be forgiven. The city will pay 3 percent interest on the 20-year loan, according to the press release.

“GEFA’s water and sewer programs assist local governments with improving their environmental infrastructure,” said Kevin Clark, the GEFA director. “As part of the Clean Water program, cities and counties can improve the environment through affordable financing for green projects.”

Earlier this month, the city also applied for a $20 million loan to finance other work on the wastewater treatment plant, located near Sterling Creek. The council recently approved doubling water rates over the next three years to help pay for the two loans.

The city’s wastewater treatment plant has been operating at capacity and was responsible for a number of spills last year. Officials want to expand and upgrade it to catch up with the city’s growth. Construction could begin by the middle of this year.