GARVEE Transaction History
2019
The following is a brief summary of GARVEE transactions in 2019.
March
- Arizona issued approximately $62.5 million in GARVEEs in March, netting $75 million including a portion of the issue premium for use on Interstate, US Highway, and State Route projects around the state:
- 11 miles of pavement reconstruction along I-8 in Pinal County
- 15 miles of pavement preservation along westbound I-40 between the Markham Wash Bridge and the East Seligman traffic interchange in Seligman, Yavapai County
- 10.5 miles of pavement rehabilitation along I-40 near Joseph City, Navajo County
- Replacement of the existing nine-span, steel arch Pinto Creek Bridge along US 60, six miles west of Miami in Gila County, with a new four-span haunch girder bridge on a new alignment, along with reconstructed roadway approaches
- 20 miles of pavement rehabilitation along Route 72 in La Paz County
- 10 miles of pavement rehabilitation, shoulder widening, and drainage improvements along US 93 from White Hills Road to 11th Street, 32 miles north of Kingman in Mojave County
April
- The State of Louisiana passed GARVEE enabling legislation in 2002 (amended in 2015). The State issued its first $185 million in GARVEEs in April 2019 as part of a GARVEE Program of projects. Additional GARVEE issuance may not exceed $650 million in total. The GARVEE Program consists of the following projects:
May
- The State of Idaho's eleventh GARVEE issue since 2006 raised nearly $138 million (including the issue premium, net of an escrow deposit and the cost of issuance) for its GARVEE Transportation Program. When first authorized in 2005, Idaho's GARVEE program consisted of 13 legislatively identified projects or corridors and an original expected total cost of $998 million. However, one project was ultimately funded by the Recovery Act, and additional bid savings resulted in a final program cost of $857 million when completed. Subsequently, the Idaho Legislature in 2017 authorized an additional $300 million in new bonds to fund projects in 12 of the 13 original corridors. Ultimately, three corridors were selected by the Idaho Transportation Board to fund with the new program:
- US-95, Garwood to Sagle - improvements along a portion of a 31.5-mile multilane divided highway, including a new interchange at the US-95/ID-53 intersection and realignment of ID-53 with a new bridge over the Union Pacific Railroad, a new grade separation at Garwood Road that spans US-95 and the UPRR tracks, and expanding US-95 1.5 miles north of the previous terminus, including frontage roads on both sides of the highway. $64 million is allocated for the design, right-of-way acquisition, and construction.
- SH-16, I-84 to South Emmett - highway extension from its present terminus at SH-44 to I-84 between Nampa and Meridian. $50.5 million is allocated for right-of-way acquisition.
- I-84, Caldwell to Meridian - continuation of corridor modernization involving reconstruction/expansion of more than 7 miles of I-84 between Nampa and Caldwell in Canyon County. $27.1 million of a planned $185.5 million is allocated for environmental, design, right-of-way acquisition, and construction.
June
- The State of North Carolina has issued GARVEE bonds roughly every two years since original passage of its GARVEE Act in 2005 and execution of a memorandum of agreement with FHWA in 2007. In June 2019, the State issued $600 million in new money for 25 projects around the state, bringing the total of completed and proposed GARVEE-funded projects since the Act's inception to 80. Projects proposed for construction with the new funding include the US 70 Havelock Bypass in Craven County, segments of the Future I-74 Winston-Salem Northern Beltway, segments of the Future I-295 Fayetteville Outer Loop, and a number of interchange improvement, widening, and pavement rehabilitation projects on multiple state routes and interstates.
2018
The following is a brief summary of GARVEE transactions in 2018.
March
- The State of Ohio was one of the first in the nation to take advantage of the Federal GARVEE Program introduced by the 1995 NHS Act, and in March issued nearly $370 million in GARVEEs - its seventeenth series since 1998. The issue resulted in a $420 million deposit into the Infrastructure Bank Obligations Fund when accounting for the bonds' issue premium. The bonds finance 24 highway and bridge projects around the state. Some of the largest include:
May
- In May, the Oklahoma Department of Transportation issued $61.51 million in GARVEE bonds to partially finance the Gilcrease Expressway West in Tulsa. The Oklahoma Turnpike Authority is developing the $230 million, five-mile Gilcrease Expressway West project on a public-private partnership basis. The build-finance P3 procurement requires the private partner to construct the road and provide interim financing for a portion of the capital cost. The project will complete a segment of the planned Tulsa expressway network between I-44 and US-412. The four-lane divided toll highway will feature four interchanges and 22 bridges, including one in each direction over the Arkansas River. The project will also include a 10-foot-wide concrete trail extending from W 51st Street to the Katy Trail just south of US-412.
October
- The Maine Department of Transportation in October issued $44.3 million in new GARVEEs and $9.9 million in refunding GARVEEs against $101.3 million in outstanding aggregate principal. The proceeds from the new GARVEE bonds will partially finance 10 highway projects across the state. The projects consist of reconstruction and rehabilitation on approximately 26 miles of highways: Route 4 in Phillips-Madrid, River Road in Windham, Route 6 in Abbot, Route 1 in Van Buren, Route 1 in Camden, Route 1A in Hamden, and Route 1 in Presque Isle-Caribou. Two bridge replacements in Gardiner and Bangor, and one bridge wearing surface replacement on the Kittery-Portsmouth I-95 bridge will also be financed.
November
- The Commonwealth Transportation Board in Virginia issued $77.055 in GARVEEs in November. At the time of this new issuance, the Commonwealth had an outstanding principal amount of about $943 million against a maximum authorized $1.2 billion as provided by state law. The GARVEE proceeds are expected to pay for a portion of five transportation projects: I-95/Route 630 (Courthouse Road) Interchange Relocation in Stafford County involving the construction of a diverging diamond interchange, Route 165 and Route 13 Widening in Norfolk, Odd Fellows Road Segment B2 in Lynchburg, Route 277 Widening in Frederick County, and the widening of I -64.
2017
The following is a brief summary of GARVEE transactions in 2017.
June
- The State of Alabama issued $556.6 million in GARVEEs in June. Of that total, $140.0 million will refund a portion of previous 2012 GARVEE issuance. In addition, various road and bridge projects across the state will be financed with $416.7 million in a second series of GARVEEs. The projects were pre-approved by FHWA for federal reimbursement under the Advance Construction procedures, and Alabama will seek reimbursement for GARVEE debt service in lieu of direct reimbursement for construction costs. These projects include replacement of bridges and interchange improvements on I-20/I-59 in Birmingham.
July
- The State of Mississippi issued $59.5 million in GARVEE bonds in July to refund bonds issued in 2012 and originally slated to mature between 2023 and 2028. The 2012 bonds have supported the design, right-of-way acquisition, and construction of I-69/I-269 in Marshall County from the Desoto County line east to the border with Tennessee, scheduled to be complete by the end of 2018. The $270 million project has been supported primarily by proceeds from GARVEE bonds issued in 2007 and 2012.
August
- The Georgia State Road and Tollway Authority (SRTA) issued a total of $282.3 million in GARVEE bonds in August. Of that total, $231.3 million will refund balances on Georgia's previous three GARVEE bond issues from 2006 (all outstanding bonds), 2008 (bonds maturing on or after June 1, 2019), and 2009 (bonds maturing on or after June 1, 2020). Additionally, $51.0 million will be used to finance right-of-way acquisition for planned dual express lanes in both directions along I-285 between I-75 to I-85 on the northern side of metropolitan Atlanta. SRTA anticipates issuing approximately $600 million in combined GARVEEs and toll revenue bonds in FY 2020 to provide further financing for the project.
2016
The following is a brief summary of GARVEE transactions in 2016.
August
- The State of Ohio issued $217.6 million in Major New State Infrastructure Project Revenue Bonds in August. Along with an issue premium of $47.8 million, the proceeds will continue to pay for various highway and bridge projects across the state as well as debt service and financing costs. Projects include interstate and other roadway resurfacing, rehabilitation, and widenings, intersection improvements, and new expressway construction, among others. Disbursements also include $36.2 million to the Ohio Bridge Partnership Program, which consists of replacement of 220 structurally deficient bridges throughout the state.
October
- The Rhode Island State Legislature passed the RhodeWorks Act in February authorizing the issuance of $300 million new GARVEE bonds as part of funding for bridge replacement, reconstruction, and maintenance. The act also permits the Rhode Island Department of Transportation (RIDOT) to establish and collect tolls from large commercial trucks traveling on Rhode Island bridges, and it authorized the refinancing and restructuring of outstanding GARVEE bond debt - $230.3 million of which was refunded in June. Then in early October, the Rhode Island Commerce Corporation issued $245.9 million in GARVEEs (along with a $55.8 million premium) on behalf of RIDOT to help finance the RhodeWorks Bridge Projects. Financing will also come from proceeds from previously issued motor fuel tax revenue bonds.
The RhodeWorks Bridge Projects comprise 20 sets of bridges, ranging from a single bridge to ten bridges in fair or poor condition, all currently programmed on the State Transportation Improvement Program. Repairing all 55 bridges is estimated to cost $708.9 million, which includes $38 million in capital funding for toll gantries. The largest project planned is the $400 million Route 6 and Route 10 Highway Project in Providence, where the interchange between the two routes is in poor repair. Seven of its nine bridge structures are rated structurally deficient, requiring extensive shoring, bracing, and other interim support measures in order to meet minimum safety and load requirements.
- In late October, the Commonwealth of Virginia issued $316.9 million in GARVEEs. This issue also included a $64.9 million premium. This was the fourth GARVEE issuance since the legislature passed the "GARVEE Act" in 2011. Proceeds will pay for 24 projects identified through the High Priority Projects Program, focusing on projects of regional or statewide significance, and the Construction District Grant Program, established in each highway construction district to fund projects and strategies identified by local governments that address a need in the Statewide Transportation Plan. The 24 projects include new construction, reconstruction, widenings, interchange improvements, and other roadway enhancements across the commonwealth.
