With recent declines in earmarking and loss of discretionary funding programs, GARVEE Bonds are one of the few competitive funding pots left for transportation projects. The National Highway Institute is sponsoring an upcoming Webinar on the basics of GARVEE Bonds.
GARVEE’s, or Grant Anticipation Revenue Vehicles, are securities issued in order to advance upfront funding of particular project needs when federal-aid grants are anticipated. The issuer may be a State, political subdivision, or a public authority. GARVEEs enable a State to accelerate construction timelines and spread the cost of a transportation facility over its useful life rather than just the construction timeline. Follow this link to learn more about GARVEE bonds.
To qualify for a GARVEE, a project must be approved as a Federal-aid debt-financed project under Section 122 of Title 23. While they are not limited to any certain type of project or funds, candidates are generally larger projects, big enough to merit borrowing rather than pay-as-you-go grant funding.
Currently, fifteen States and the District of Columbia are engaged in GARVEE activity, these projects combining to provide over 15 trillion dollars in support. For example, as recent as November, the State of Ohio issued $184 million in GARVEEs to support its current State Transportation Improvement Program. Washington State issued its first ever GARVEE bonds in 2012 to support the SR 520 Floating Bridge and Eastside project, providing $500.4 million as part of the $1.95 billion in authorized debt. The State intends to issue an additional $300 million in GARVEEs in Fiscal Year 2013. To learn about all current GARVEE Bonds, follow this link.
The webinar will be held on January 23, 2013, from 1:30 PM – 3:30pm (ET). For more details and to register for the event, click here.