HATFIELD — A $2.4 million grant from the U.S. Department of Agriculture, coupled with a $9.5 million 40-year loan, is providing the upfront funds for wastewater treatment plant upgrades expected to get underway this spring.

Town officials announced this week that the grant allocation for the project was approved by the USDA Office of Rural Development in Amherst, with support for the money coming from U.S. Rep.Jim McGovern. The 40-year loan will have a 2.875% interest rate.

Voters two years ago approved the $12 million Proposition 2½ debt-exclusion for the project, and adjustments have been made to sewer rates as well.

A description of the project provided by the Select Board states that, among other aspects, it will feature “a new headworks building with influent screening system and washer-compactor and grit removal system, replacement of secondary clarifier mechanisms, weirs and baffles (and) conversion of gaseous chlorine to liquid hypochlorite disinfection system.”

The project also includes a water main extension to the treatment plant site and new emergency generators at two remote pump stations.

“On behalf of the Hatfield Select Board and all the residents of town, we extend our appreciation to the USDA and for support from our state representatives,” members of the Select Board wrote in a statement.

David Prickett, president of DPC Engineering LLC of Longmeadow, provided what he called a “high level” update on the project in February. He told the Select Board that subcontractor bids are to be opened this week and general contractor bids are to be opened on March 20. After that, Prickett will return with a recommendation to hire the lowest responsible eligible bidder, which will precede an 18-month to two-year construction period.

“The project remains on budget as appropriated by the residents a couple years back,” Prickett said.

Prickett said he understands the sensitivity to rising costs and that the period of soliciting bids is a nervous and anxious time. The budget for the project was put together in early 2020, before the pandemic and recent inflationary pressures. He acknowledges that annual construction costs have been going up by 10% and things remain relatively volatile in the market, but strategies are available, including accepting the base bid and then prioritizing various add-ons and alternatives to reduce costs.

Scott Merzbach can be reached at smerzbach@gazettenet.com.