Tools & Programs
Federal Debt Financing Tools
Grant Anticipation Revenue Vehicles (GARVEEs)
The following is a brief summary of GARVEE transactions in 2016.
- 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.
- 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.