Funding
The Fast Forward Program will be funded using a blend of Grant Anticipation Revenue Vehicle (GARVEE) bonds, Guaranteed Revenue Bonds (GRB) and General Obligation (GO) bonds as well as Federal funds in the Department’s regular program.
Grant Anticipation Revenue Vehicle (GARVEE) bonds
Grant Anticipation Revenue Vehicles utilizes bond or other debt instrument financing mechanisms involving the payment of future Federal-aid highway funds to retire debt.
- GARVEE Program accomplishes projects in 6 years that otherwise would have taken 18 years
- Finance costs are reduced through use of GARVEEs
- Does not require the pledge of the State to receive an uninsured high bond rating ensure an open and competitive process for GARVEE debt financing
Direct and Indirect GARVEE Bonds
The proposed bond is a blend of direct and indirect GARVEEs
- Direct GARVEE Bonds provides 80% of debt service from FHWA reimbursements
- Indirect GARVEE Bonds will provide the remaining 20% of funds to match the direct GARVEE Bonds
A wide array of bond-related costs is eligible for reimbursement, including principal and interest payments, issuance costs, insurance, and other costs incidental to a financing.
- Provides additional flexibility in funding transportation needs
- This program limits annual debt service to approximately 20% of the federal program
- Restricted to National Highway (NH) and Interstate Maintenance (IM) funding categories