Mohsin Syed Chief of Staff at U.S. Department of Transportation (DOT) | Official Website
The U.S. Department of Transportation announced today that its Build America Bureau has provided three loans totaling $113.8 million to the Oklahoma Capital Improvement Authority (OCIA) on behalf of the Oklahoma Department of Transportation (ODOT). These funds aim to improve rural road safety across 15 counties in the state. The loans, part of the Transportation Infrastructure Finance and Innovation Act (TIFIA), are intended to expedite infrastructure projects and reduce costs.
“On behalf of the Biden-Harris Administration and USDOT, I am proud to deliver this $113.8 million investment to Oklahoma. This financing, combined with two prior loans, will improve over 100 miles of rural roads, enhancing safety and preventing injuries in communities across the state,” said Deputy Transportation Secretary Polly Trottenberg. “USDOT is committed to ensuring that all communities, regardless of their size or location, have access to safe and reliable infrastructure.”
The rural two-lane network in Oklahoma accounted for approximately 65 percent of all serious and fatal crashes in the state due to a lack of shoulders. The Rural Two-Lane Advancement and Management Plan (RAAMP) Phases 3, 4, and 5 projects will address this issue by adding eight-foot shoulders, rehabilitating and resurfacing 59 miles of roads and structures, and replacing three bridges and four concrete bridge boxes.
Oklahoma is utilizing the Bureau’s Rural Project Initiative, which offers rural borrowers loans covering up to 49 percent of eligible project costs compared to the customary 33 percent. Additionally, these loans lock in a low interest rate at half the Treasury rate. ODOT has now secured five loans for RAAMP totaling more than $244 million: $45.2 million for RAAMP 3, $39.2 million for RAAMP 4, and $29.4 million for RAAMP 5.
“Oklahoma’s innovative approach to expedite delivery of safety improvements for rural roads years ahead of schedule not only saves taxpayers tens of millions of dollars but also saves lives,” said Bureau Executive Director Morteza Farajian. “Other communities can benefit from this approach as well."
An independent analysis by the Build America Center at the University of Maryland found that these projects would accelerate project delivery by six years through TIFIA financing, resulting in $37.8 million in construction cost savings. The shoulder improvement program is estimated to provide $38.7 million in safety benefits along with environmental improvements and maintenance cost reductions.
“The Oklahoma Department of Transportation is thankful for Rural TIFIA loans that provide additional financial means to complete roadway safety improvements years sooner than if funding were secured through other means,” said Oklahoma Director of Transportation Tim Gatz.
The Build America Bureau supports transportation infrastructure investment by lending federal funds to qualified borrowers; providing technical assistance; encouraging best practices; and coordinating with states, municipalities, private partners, and other project sponsors seeking federal financing.
