The U.S. Department of Transportation (DOT) announced Tuesday that they would be providing a consolidated loan of up to $448.38 million to the Central Texas Regional Mobility Authority (CTRMA) for tollway projects in the Austin area.
The funding comes from the DOT’s Build American Bureau via the Transportation Infrastructure Finance and Innovation Act. The loan would finance a new project and refinance and replace two current loans, which started in November 2015 and March 2019. At a lower interest rate, the new loan is estimated to save CTRMA more than $80 million in interest costs.
“This loan will support new infrastructure in the Austin area, giving residents better access to jobs, healthcare, and other critical services,” said Transportation Secretary Pete Buttigieg. “As communities across the country continue to battle the pandemic, we are committed to being a partner to help them save money, reduce congestion and improve mobility, safety, and accessibility.”
CTRMA will use the money saved to move forward on its other capital projects, including getting financing to start the 183A Phase III project – a six-lane, 5.3-mile tollway project north of Austin, adding two tolled lanes in each direction. The two prior loans helped finance the 183S project for a limited-access toll road on the east side of Austin. The loans also funded the 290E Phase II project east of Austin for three direct roads to facilitate free flow movements between the 290E Toll Road and the SH 130 Toll Road. Both of the 183A and 183S projects contain pedestrian and bike-friendly features, as well as access to trails.
“The refinancing of the TIFIA loans will offer CTRMA significant future debt service savings,” said Bill Chapman, CTRMA’s interim executive director and chief financial officer. “Lower TIFIA loan interest rates will provide for better coverage and help mitigate the impacts of the pandemic, thereby enabling CTRMA to obtain the 183A Phase III TIFIA loan. The lower debt service will also provide for added future capacity and continued development of projects in the region.”