The South Carolina Department of Transportation announced on Oct. 17 it was debt-free after making the final payment on its outstanding highway bonds.
The payment means the department has paid off all of its outstanding debt including State Infrastructure Bank loans. Money will now be directed toward saving money for investment into ongoing projects, the department said. The announcement makes South Carolina one of only six state departments of transportation in the country with no outstanding highway bonds or loans. In December 2021, the department made a one-time early repayment of loans to the State Infrastructure Bank, saving the department $9.2 million in future principal and interest payments.
“I’m proud to announce that we have reached this significant milestone,” said Christy A. Hall, the state’s Secretary of Transportation. “We are grateful to Governor McMaster and the South Carolina General Assembly for their continued investment in our work and we take seriously our responsibility to be responsible stewards for the people of South Carolina. We appreciate the support of our colleagues at the State Treasurer’s Office as we continue to plan strategically for the future of the agency.”
Previously, in 2003, the SCDOT had approximately $1 billion in transportation debt. In 2008, the annual payments on the debt went as high as $100 million. By paying off the debt, the department is better positioned financially to finance larger projects like the reconstruction of I-526 between Mt. Pleasant and West Ashley.
“The SCDOT is making tremendous progress on our Strategic 10-Year Plan and we are better positioned than ever before to expedite the projects we have in the pipeline,” said SCDOT Commission Chairman David E. “Gene” Branham, Sr.