FARMINGTON — Navajo Nation President Ben Shelly signed a loan agreement on Thursday for $2.8 million to pay for Operation Winter Freeze, which restored running water to 18,000 residents on the Navajo Nation, according to a tribal press release Friday.
The agreement was with Key Bank. Key Bank agreed to the loan adhering to Navajo Nation law and courts.
“We had many people affected by the freeze, so it was important that we ensured the safe welfare of our people,” President Shelly said.
 The loan is expected to be partially paid back with reimbursement funding from the Federal Emergency Management Agency.
President Barack Obama declared the frozen waterlines a disaster Tuesday, though most already have been repaired by the Navajo Tribal Utility Authority. The declaration made way for FEMA to financially assist with costs related to the emergency.
The tribe is expect to share 25 percent of the cost of the emergency while FEMA can reimburse 75 percent of the cost related to the emergency.
Navajo Tribal Utility Authority officials said the emergency cost about $1.8 million. They had more than 25 crews working for more than a month to restore water.
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