The City of Brandenburg is the first local government in the stale of Kentucky to fund a project using an innovative public-private partnership (P3). The city participated with the Kentucky Bond Corporation (KBC) in issuing bonds for a new $8.3 million municipal wastewater treatment plant.

The new plant paves the way for construction of the Nucor Corp $1.7 billion steel plate manufacturing facility, which is planned to be built on the site of the city’s current wastewater plant. The new facility is the first P3 approved by the Kentucky Local Government Public-Private Partnership Board since legislation allowing P3s was passed by the Kentucky General Assembly in 2016.

“This is the kind of difference-making partnership that this legislation was designed to promote,” said J.D. Chaney, the Executive Director and CEO of the Kentucky League of Cities. “It is extremely exciting to see legislation that was championed by KLC used to successfully provide numerous jobs and economic opportunity for the citizens of Brandenburg and surrounding communities.”

It is anticipated this project will open the door for many other local governments to take advantage of the opportunities P3 offers to improve their water systems and other infrastructure needs. P3s allow private companies and public entities – such as a city council – to more easily work together in financing major infrastructure and other projects.

KBC was formed in 2010 by the Kentucky League of Cities to help municipalities access the fixed rate bond market. Participants utilizing KBC benefit from an AA- rating from Standard and Poor’s achieved in part from the debt service reserve funded by the Kentucky League of Cities. Since its inception, KBC has issued over $250 million on behalf of 75 different municipalities for various projects around the commonwealth of Kentucky.

RSA Advisors serves as municipal advisor to KBC. “It’s been a valuable program for our cities and a winning partnership with RSA Advisors,” said KLC Director of Corporate Law and Finance Robyn Miller. “We were glad to be a part of this groundbreaking financing.”