7 million in GARVEE
bonds for the "Big Dig" project in Boston to help pay for the reconstruction of part of Interstate 93 as a tunnel.
Without the ability to issue GARVEE
bonds to provide upfront capital, the Colorado Department of Transportation (CDOT) would have been unable to bridge the funding gap on the $1.
The answer became clear in 1998 when the federal highway bill known as TEA-21 included a provision called Grant in Anticipation of Revenue Vehicles, or GARVEE
Geoffrey Yarema (Nossaman): "I feel strongly that we need Federal tools--such as GARVEE
bonds, TIFIA, and private activity bonds--that save money and make deals more efficient.
The construction of Contract A is funded under the federal GARVEE
Legislators also authorized the Highway Commission to sell GARVEE
bonds subject to a vote by the public.
The most significant risk to GARVEE
bonds remains the lack of a long-term federal transportation funding solution.
One recent mechanism for the long-term financing of federally assisted highway projects is GARVEE
ADDITIONAL LEVERAGE NOT ANTICIPATED: The authority has reached a statutory cap on GARVEE
issuance and additional bonds are not expected in the medium term.
The first, second, and third liens carry additional bonds tests of 4x, 3x and 2x, respectively, although MoDOT's more restrictive policy stands at 5x, 4x and 3x, respectively, levels which ensure sizable residual revenues for other departmental purposes, including backstopping GARVEE
bonds and for operations.
Additional leverage on the fourth lien of state road bond fund revenues that drops coverage of GARVEE
debt service by state funds below the policy of 2.
In addition, ITD maintains no other debt outstanding than that associated with its GARVEE