Road Bond Refinancing to Generate Savings of $19 Million, Leverage $75 Million for Critical Projects

Road Bond Refinancing to Generate Savings of $19 Million, Leverage $75 Million for Critical Projects

Gov. Joe Manchin today announced the refinancing of debt from General Obligation road bonds, taking advantage of low interest rates in a move that is expected to generate a cost savings of $19 million -funds that will be used to leverage an estimated $75 million in federal funding for critical highway projects.

"As a result of the legislature and my administration working together, the state will realize a significant cost savings that will be reinvested in major highway projects across West Virginia," the governor said. "The savings generated by the refinancing has come at an opportune time, allowing the state to maximize its resources to address critical projects such as W.Va. Route 9 in the Eastern Panhandle and U.S. 35 in Mason and Putnam counties."

The refinancing, approved by the legislature during the most recent special session, will generate an immediate savings of $19 million for the state. Based on the federal formula of an 80/20 percent match for state road construction projects, the bond refinancing is expected to leverage an estimated $75 million for highway construction projects coordinated through the West Virginia Division of Highways.

General Obligation road bonds were originally authorized by the state in 1996 pursuant to the "Safe Roads Amendment of 1996" to be used to pay for matching federal funds and general highway construction projects statewide. The process of issuing these bonds began in 1998.

"I am very pleased with this latest effort to achieve a responsible government, ensuring that we utilize the taxes paid by our citizens in a efficient and more effective manner." the governor said. "Today's actions will result in a substantial savings for the state, similar to the expected savings West Virginia will see with statewide approval of the Pension Bond Amendment on June 25 and refinancing of our state pension debt."

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