USDA ANNOUNCES OVER $45 MILLION IN RURAL DEVELOPMENT FUNDS FOR RURAL IOWA

DES MOINES, Iowa, Aug. 15, 2003 – Agriculture Deputy Secretary James Moseley today announced the approval of $45 million in USDA Rural Development loan and grant funds to assist in the expansion of local rural electric infrastructure and distribution, business and community development.

“These rural capital investments are part of President Bush’s ongoing efforts to spur economic growth,” said Moseley. “USDA’s action today supports the creation of economic opportunities and an improved quality of life for rural Iowa residents.”

Moseley made the following loan and grant announcements while visiting Des Moines where he spoke at the Iowa State Fair:

Merrill Pioneer Community Hospital, Inc., Rock Rapids, Iowa -- $24,600 community facility grant for additional construction costs related to the medical clinic for the city of George.

Wright County Housing, Inc., Clarion, Iowa -- $100,000 community facility guaranteed loan to purchase two group homes to benefit people with special needs (persons with physical and mental disabilities). Security Savings Bank in Clairon made the loan guarantee request.

Central Iowa Power Cooperative, Cedar Rapids, Iowa -- $38,195,000 electric loan guarantee. The funds will be used to make system improvements at the Council Bluff #3, Louisa, Fair Station, Summit Lake, and the Duane Arnold Nuclear Station (DANS). Central Iowa owns 20 percent of the DANS. This will upgrade, improve reliability and safety, as well as making the existing generation units more efficient. The Central Iowa Power Cooperative provides electric power to distribution cooperatives serving 50 Iowa Counties. The Power Cooperative and its 14 member cooperatives provide service to more than 250,000 Iowans.

Xenia Rural Water District, Bouton, Iowa -- $4,285,000 water loan and grant package ($1,517,000 loan, $572,500 loan, $1,568,000 grant and $627,500 grant) to construct a water distribution system in Sanitary Area #3 and construct a water treatment plant to serve residents in eight counties in Iowa.

Page 1 Rural Water District, Clarinda, Iowa -- $1,200,000 water loan and grant package ($800,000 loan and $400,000 grant) to construct an elevated storage facility that will increase water pressure, allowing the district to utilize a less expensive water source.

West Central Iowa Rural Water Association, Manning, Iowa -- $745,600 water loan and grant package ($585,600 loan and $160,000 grant) to extend existing water lines that will provide water service to approximately 230 rural households. The project also includes a 200,000-gallon elevated water storage tower.

Village of Montpelier Sanitary District, Montpelier, Iowa -- $26,900 wastewater grant to develop a sanitary collection system.

Warren County, Indianola, Iowa -- $458,000 waste water loan and grant package ($128,000 loan and $330,000 grant) to install a central collection system and disconnect individual septic systems, many of which are failing. The funds will also be used to purchase an existing wastewater lagoon from the local school district as part of the new system.

City of Delmar, Iowa -- $221,500 water grant to drill a new well, construct a new elevated reservoir and replace part of the water main to renovate an antiquated and failing system.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov .

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