North Carolina taps bonds for loop projects

| Friday, September 09, 2011

A road-funding plan, which was announced this week in North Carolina by Gov. Bev Perdue, is intended to speed up work on more than 200 miles of road projects.

The governor announced plans to accelerate work on urban loop projects in six cities at the Piedmont Triad Regional Transportation Summit in Greensboro, NC. The state will issue federal GARVEE bonds to get the work done.

Grant Anticipation Revenue Vehicle bonds allow states to borrow money against the annual federal transportation funding designated to pay for construction. The sale is based on the assumption that federal funding in future years would pay off the bonds. This allows states to get money needed up front.

Perdue said the plan moves critical transportation projects forward faster and sustains and creates jobs.

“Investing in our state’s infrastructure is about jobs,” Perdue said in a statement. “Not only will it create jobs, but it also will build an efficient transportation network that will attract new businesses and bring more jobs to our state in the future.”

The affected projects are in Asheville, Fayetteville, Greensboro, Greenville, Wilmington and Winston-Salem.

The urban loop program totals 353 miles, 140 of which are now open to traffic. The estimated cost to build the remaining 213 miles of road is about $8 billion.

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