Kentucky Transportation Cabinet announces $150 Million for Interstate Projects
The Kentucky Transportation Cabinet is committed to ensuring the Commonwealth’s safe mobility by paving the way toward the future. As part of the continual effort, the Cabinet announces $150 million for direct GARVEE Bond projects for the widening of Interstates 75, 65, and 64.
“This investment in infrastructure reinforces our commitment to providing a safe and reliable transportation system for all our citizens,” stated acting Secretary Bill Nighbert. “As part of our highway-economic development plan, these interstate projects will improve mobility while providing increased economic opportunities to the people of the Commonwealth.”
Kentucky is one of only thirteen states that have issued these bonds. The bonds will be sold later this month. The debt is repaid with future federal highway revenues.
The bonds are insured, with a AAA rating and received strong underlying credit ratings from Fitch Ratings, Moody’s Investors Service and Standard & Poor’s Ratings Services. Standard and Poor’s stated that the AA- rating on Kentucky Asset/Liability Commission’s GARVEE Series 2005, issued on behalf of the Kentucky Transportation Cabinet, and is based on the strengths of the Kentucky GARVEE program.
“Through the leadership and vision of the General Assembly, Governor Fletcher and acting Secretary Bill Nighbert, today’s announcement is once again an example of the commitment to improving the quality of life in our communities through improving our highways,” said Commissioner Marc Williams, Department of Highways.
This first phase of the GARVEE program covers $150 million in projects expected to be let over the next year for sub-projects on Interstates 65 and 75. This first issue of bonds is part of what is envisioned to be a total $440 million GARVEE program that will take place over the next three years. The General Assembly has already approved this program of projects, but will have to authorize future sale of GARVEE bonds as part of upcoming legislative sessions.
The GARVEE bonds are an innovative financing technique used by state transportation departments to accelerate needed federal highway projects.