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State Approves Alternatively-Financed Projects

AUSTIN – State transportation officials today approved the selection of 10 projects around the state that will be funded by TxDOT’s pass-through finance program.

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. It lets local officials reprioritize and accelerate projects important to the region.

The Texas Transportation Commission approved the list, estimated at $273 million, at its monthly meeting in Austin. The final total program call amount is subject to negotiations between the department and the local entities with respect to the actual reimbursement schedules developed as part of the individual pass-through agreements.

TxDOT issued a program call earlier this year, which led to this final selection of projects.

Pass-through financing is a tool the state created to stretch limited transportation funds that would allow 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.

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

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

The program is often referred to as the Pass-Through Toll Finance program. While the term “toll” in the program’s title denotes a fee associated with travel on a particular facility, it does not imply that a physical toll collection will take place on a transportation facility that becomes part of the program. This type of finance generally applies to non-tolled roads, but TxDOT can consider pass through financing for tolled projects.

For more information contact TxDOT Government and Public Affairs Division at (512) 463-8588.

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.