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Project Profile: Rural Two-Lane Advancement And Management Plan (RAAMP), Oklahoma

Narrow state highways in eight Oklahoma counties are to be  repaved and widened under a $41.5 million loan of federal funds to the state  highway department

Narrow state highways in eight Oklahoma counties are to be repaved and widened under a $41.5 million loan of federal funds to the state highway department
Source: Credit to Oklahoma Department of Transportation

Project Name

Rural Two-Lane Advancement And Management Plan (RAAMP) in Oklahoma

Location

Harper, Kingfisher, Pontotoc, Caddo, Pittsburg, McClain, Bryan, and Ellis counties in Oklahoma

Project Sponsor / Borrower

Oklahoma Capitol Improvement Authority (OCIA) & Oklahoma DOT

Program Areas

Alternative Project DeliveryProject FinanceTIFIA

Value Capture Techniques

N/A

Mode

Rural Roads & Bridges

Description

The Oklahoma Department of Transportation is upgrading numerous rural roads without shoulders to enhance safety through its Rural Two-Lane Advancement And Management Plan (RAAMP). Build America Bureau has provided a low-interest, long-term loan of $41.55 million to the Oklahoma Department of Transportation (ODOT) to finance 49 percent of the $85.97 million in eligible costs. The project will provide significant safety improvements, one of the primary objectives of RAAMP. The project is a compilation of eight rural projects that will add nearly 27 miles of 8-foot shoulders and asphalt resurfacing as well as 6.4 miles of roadway reconstruction. The projects are located in Harper, Kingfisher, Pontotoc, Caddo, Pittsburg, McClain, Bryan, and Ellis counties in Oklahoma.

The additional money provided by the federal low interest rate loan will free up ODOT funding to be used on other two-lane highways. Oklahoma has 5,300 miles of two-lane highways with deficient shoulders, which is a significant safety concern for drivers. The TIFIA Rural Project Initiative aims to strengthen rural America's transportation infrastructure. The initiative will fund projects worth between $10 million and $100 million in locations with populations of less than 150,000 people. Its benefits include borrowing up to 49 percent of a project's qualified costs, as opposed to the 33 percent granted by regular TIFIA loans. Oklahoma will also get a fixed interest rate on its loan equal to one-half of the US Treasury rate for the loan's equivalent maturity and closing date.

The focus of the Rural Project Initiative is to develop transportation infrastructure in rural communities by making loans more accessible to small communities.

Cost

$85.97 M, TIFIA eligible costs

Funding Sources

TIFIA Direct Loan - $41,547,440/48 percent

ODOT Equity- $44,425,787 / 52 percent (combined with Federal Formula Funds & State Funds)

Project Delivery / Contract Method

Design-Bid-Build

Private Partner

N/A

Project Advisors / Consultants

N/A

Lenders

USDOT

Duration / Status

Projects are under construction

TIFIA Credit Assistance

$41.55 M, 49 percent of the $85.97 million in eligible costs for the Rural Two-Lane Advancement And Management Plan (RAAMP).

The state Transportation Department will repay the TIFIA loans over a 20-year period with appropriations from the Legislature.

Financial Status / Financial Performance

The TIFIA credit agreement was signed on May 27, 2022.

A lease agreement provides that ODOT will make regular payments to the OCIA in amounts sufficient to pay the principal, interest, and related costs of the TIFIA loan.

Innovations
  • Innovative financing strategy, TIFIA Rural Project Initiative to speed rural highway Safety Construction project.
  • Save the taxpayers some money in ‘the long run’ because inflation and the cost of materials such as cement are rising.
  • Reinforce connecting communities, support economic growth and create jobs National Goals.
  • Provide greater access to the State’s outdoor areas and recreational bicycling events, further supporting its tourism industry and encouraging healthy lifestyles.
  • Support a national goal of energy independence and greater use of carbon-free energy.
  • Support areas historically underserved in the State, rural communities with higher poverty and unemployment, and lower household incomes.
  • Directly enhance the geographic and social equity of Oklahoma.
Related Links / Articles
Contacts

Mr. Rick Johnson, Deputy Director
Oklahoma Department of Transportation
rjohnson@odot.org
(405) 522-6000

Jared Schwennesen, Division Manager
jschwennesen@odot.org
(405) 521-4302

Shelly Williams, P.E., Local Government Division Engineer
slwilliams@odot.org
(405) 208-3289

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