Texas Water Development Board approves $23,860,000 to the City of Mercedes (Hidalgo County) for wastewater system improvements

For immediate release. Contact: Media Relations at 512-463-5129

AUSTIN – (October 2, 2025) – The Texas Water Development Board (TWDB) today approved by resolution financial assistance in the amount of $23,860,000 to the City of Mercedes (Hidalgo County), consisting of $13,860,000 in financing and $10,000,000 in principal forgiveness from the Clean Water State Revolving Fund (CWSRF). The City will use the assistance for planning, design, and construction of a wastewater system improvement project.

In addition to the loan forgiveness, the City could save approximately $5,100,000 over the life of the loan by using the CWSRF.

With the assistance approved today, the City will add a new sludge holding tank, along with replacement and rehabilitation of submersible pumps, a vortex grit removal system, effluent lift station pumps, return and waste activated sludge pumps, and a UV disinfection system. The City will also rehabilitate lift stations, an oxidation ditch, and a clarifier, along with structural repairs to headworks and electrical upgrades, and develop an asset management plan. 

The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional water and flood planning, and preparing the state water and flood plans. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood mitigation, and agricultural water conservation projects.