GARVEE report shows four corridors fully funded
Highway construction projects funded by Grant Anticipation Revenue Vehicle (GARVEE) bonds have been completed in four of the six corridors, according to ITD Director Brian Ness.
“The design and construction of these GARVEE-funded projects have been accomplished in an efficient, transparent and accountable manner,” the director wrote in the 2010 annual GARVEE report, published Sept. 30.
“By leveraging private-sector resources, the department has been successful in delivering projects ahead of schedule and under budget. We look forward to applying many of the techniques used on the GARVEE projects throughout the department.”
The state has sold four series of bonds to finance $657 million in transportation projects. “The program has capitalized on favorable interest rates with a weighted average for all bonds sold of 4.54 percent. Contract awards and cash flow requirements contribute to the size and timing of bond sales.”
Bonds are sold as need – when contracts have been awarded to ensure that funds are available for the duration of the contract while limiting interest costs.
As of Aug. 31, $646.2 million of the GARVEE funds had been obligated, more than 93 percent of the $692.6 million authorized by state legislatures. The report indicated that $621 million in projects was under contract and $503 had been expended.
Of the six corridors, four are fully funded:
Two other corridors and program management are partially funded: U.S. 95, Garwood to Sagle ($88 million of $167 million); Idaho 16, I-84 to South Emmett ($54 million of $132 million); and programs management ($37 million of $42 million).
Seven supply contracts and a number of consultant services agreements had been issued as of August.
The program has benefited from a competitive construction environment and has realized substantial savings from projects bidding lower than originally estimated. Savings from GARVEE-funded projects have been reallocated to advance other projects and portions of the original scope work, according to the 2010 GARVEE annual report.
“The department has implemented a fiscally responsible strategy for addressing savings and delivering the original scope of the program,” the annual report indicates. “By taking into account all prior year savings, advancing projects that were ready ahead of their fiscal year and monitoring current construction estimates of unfunded projects, the GARVEE Program is now estimated to be $855 million.”
The Idaho Transportation Board is analyzing the program to determine whether a to make a request for additional legislative authorization.