Home | Contact Us | Site Map | Español

 

TxDOT Announces Program Call for Alternatively-Financed Projects

 AUSTIN - State transportation officials are pulling another tool out of the toolbox to keep transportation moving across Texas today with the announcement of a program call to local municipalities and private entities for pass-through financing of state transportation projects.

Pass-through financing allows local municipalities or private entities to pay for costs to build a transportation project and get reimbursed from the state as the transportation project becomes operational. Pass-through agreements let local officials reprioritize and accelerate projects important to the region.

The Texas Department of Transportation announced the program call today after its governing body, the Texas Transportation Commission, approved the measure at its monthly meeting.

Pass-through financing is a tool the state created to stretch limited transportation funds by allowing local communities to fund up-front costs for constructing a state highway project. The state then reimburses a portion of the project costs to the community over time by paying a fee for each vehicle that utilizes the transportation facility financed through the program.

“Utilization of this unique transportation finance tool allows the continued development and construction of needed transportation projects across the state,” said Phil Russell, TxDOT Assistant Executive Director of Innovative Project Development.

Up to $300 million in projects could be funded through this initiative.

Pass-through finance agreements allow local communities to get needed transportation projects financed and built earlier than traditional funding will allow.

TxDOT can develop pass through finance agreements with a Regional Mobility Authority, regional transportation authority, county, city, public or private entity.

This type of finance generally applies to non-tolled roads, but TxDOT will consider pass-through financing for tolled projects.

Projects submitted as proposals must be on the state highway system for eligibility as a consideration for development under the program.

Next month, TxDOT will publish notice of the program call in the Texas Register. The deadline for project submittals is May 12.

TxDOT and the Texas Transportation Commission hope to have projects selected and negotiations completed and agreements executed by the end of August 2009.

For more information on TxDOT’s Pass-Through Financing program click the link at: www.txdot.gov.

The Texas Department of Transportation
The Texas Department of Transportation is responsible for maintaining nearly 80,000 miles of road and for supporting aviation, rail and public transportation across the state. TxDOT and its 15,000 employees strive to empower local leaders to solve local transportation problems, and to use new financial tools, including tolling and public-private partnerships, to reduce congestion and pave the way for future economic growth while enhancing safety, improving air quality and preserving the value of the state's transportation assets. Find out more at www.txdot.gov.