- Details
- By Tribal Business News Staff
- Finance
Native American Bank announced it provided a $5.2 million bridge loan to Metlakatla Power & Light to complete an infrastructure project connecting the Metlakatla Indian Community on Annette Island to mainland Alaska's power and broadband systems.
The financing closes a gap created by inflation and tariff costs after the project’s initial funding was secured in 2021. The loan package also included participation from four Native community development financial institutions (CDFIs): Oweesta Corp. in Longmont, Colo.; Spruce Root in Juneau, Alaska; Nimiipuu Fund in Lapwai, Idaho; and Nixyáawii Community Financial Services in Pendleton, Ore. Consulting firm Baker Tilly advised the project.
The project, known as the Metlakatla Intertie, will connect Annette Island to Ketchikan Public Utilities via submarine fiber-optic and utility cables. The intertie is expected to generate nearly $150,000 in annual savings for Metlakatla Power & Light, which will be passed on to customers, according to project details.
Metlakatla Indian Community Mayor and City Manager Albert Smith said the project will “bring the affordable power and robust Internet service that our community—like every community—needs to thrive.”
The improved system will reduce energy costs in a community where residents have historically spent a disproportionate share of their income on electricity. Metlakatla Power & Light will also become the local broadband provider, offering an alternative to satellite service from Starlink.
The intertie will enable storage and distribution of hydroelectric energy and allow the tribal utility to return excess wind-generated power to the grid, according to a statement.
“As the first national American Indian-owned community development bank, NAB is committed to providing financial services that support economic independence and sustainability,” said Payton Batliner, the bank’s chief lending officer.
Native American Bank operates as a certified Native CDFI and an Indian-owned community development bank. The financial institution focuses exclusively on Native-owned and Native-led projects across tribal lands and urban Native communities.
