The U.S. Department of Transportation's Build America Bureau announced a low-interest, long-term loan of $41.55 million to the Oklahoma Department of Transportation (ODOT) for the Rural Two-Lane Advancement and Management Plan (RAAMP).
This loan covers 49% of the $85.97 million in eligible costs for the project, which aims to improve safety on rural roads in Oklahoma, according to a June 1 news release. RAAMP is a compilation of eight rural projects spanning Harper, Kingfisher, Pontotoc, Caddo, Pittsburg, McClain, Bryan and Ellis counties.
“U.S. DOT is proud to support the RAAMP program to help address safety issues and save lives in Oklahoma,” Deputy Transportation Secretary Polly Trottenberg said in the release.
The project includes the addition of approximately 27 miles of 8-foot shoulders, asphalt resurfacing and 6.4 miles of roadway reconstruction, the release reported. These enhancements are expected to significantly reduce the number of accidents on rural roads, which have accounted for 38% of all serious and fatal crashes in the state during the past five years.
Trottenberg emphasized the importance of the RAAMP program in addressing safety concerns and saving lives, the release said. In response to the alarming increase in roadway fatalities nationwide, the DOT launched a comprehensive National Roadway Safety Strategy earlier this year.
The President's Bipartisan Infrastructure Law, signed in November 2021, includes substantial funding to improve safety, particularly in rural areas where a disproportionate number of traffic injuries and fatalities occur, according to the release.
Build America Bureau Executive Director Morteza Farajian highlighted the flexibility provided by the Bureau's Rural Projects Initiative (RPI), allowing for timely infrastructure improvements with favorable financing terms, the release said. The loan granted to ODOT represents the fifth closed RPI loan at half the Treasury rate, ensuring cost savings for project sponsors and preventing escalating costs that could hinder project feasibility.
The Build America Bureau was established during the Obama administration as a comprehensive resource to assist states and project sponsors in implementing infrastructure projects, according to the release. It offers low-interest, long-term credit programs, technical assistance and best practices in project planning, financing, delivery and operation.
The passage of the Bipartisan Infrastructure Law expanded project eligibility for the Bureau's Transportation Infrastructure Finance and Innovation Act (TIFIA) credit program and extended loan maturity, providing borrowers with additional flexibility, the release said.
The TIFIA RPI specifically targets transportation infrastructure improvements in rural communities across the United States, according to the website. Under this initiative, surface transportation projects between $10 million and $100 million in areas with populations below 150,000 are eligible for financing with substantial savings compared to traditional TIFIA loans and other commercial financing products.
These savings include loans covering up to 49% of the project's eligible costs, compared to the standard 33%, and fixed interest rates equal to one-half of the U.S. Treasury rate at the time of loan closing, the website said.
