The U.S. Department of Transportation announced Monday that it would provide the Orange County Transportation Authority (OCTA) with a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan of up to $628.93 million for the I-405 Improvement Project.
Provided through the Build America Bureau, the TIFIA loan will finance part of the construction costs for a 16-mile corridor in northwest Orange County, Calif., on I-405 between State Route 73 and Interstate 605. The project will add a new general purpose lane and a new toll lane in each direction, creating a total of two express toll lanes in each direction.
The goal of the project is to improve operations of one of the most congested freeways in the country, and is expected to generate about 26,000 jobs. The DOT said it will also create more timely and reliable access to job center, schools and essential services for the region’s residents. The design incorporates not only climate resilience elements like those against flooding and earthquakes, but environmentally friendly elements for pedestrian and bike access.
Construction on the project is already underway and the project is expected to open by October 2023. The new TIFIA loan will replace the current loan provided to OCTA in July 2017. The new loan has a lower interest rate and will generate approximately $258 million in finance cost savings for OCTA over the life of the loan.