USDOT has announced a loan for tollway projects in Austin, Texas. Credit: Red John / Unsplash.

The US Department of Transportation (USDOT) has announced a $448m loan for tollway projects in metropolitan areas in Austin, Texas.

Transportation Secretary Pete Buttigieg said that the USDOT’s Build America Bureau has provided a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to the Central Texas Regional Mobility Authority (CTRMA) for this initiative.

Buttigieg said: “This loan will support new infrastructure in Austin, giving residents better access to jobs, healthcare, and other critical services.

“As communities across the country continue to battle the pandemic, we are committed to being a partner to help them save money, reduce congestion and improve mobility, safety and accessibility.”

The TIFIA loan will be used to finance a new project and replace two current loans that the Bureau provided to CTRMA for two tollway projects in November 2015 and March 2019.

With the new low interest loan, CTRMA will save more than $80m in interest costs, providing relief from the Covid-19 pandemic.

The money saved will help CTRMA to move forward with its capital development, which includes securing financing for beginning the 183A Phase III project, a six-lane, 5.3-mile tollway project in the north of Austin.

The project will extend 183A from Hero Way to State Highway (SH) 29, with the addition of two tolled lanes in each direction.

Two previous loans helped in financing the 183S project, which built and improved a limited-access toll road located in the east of Austin between US Route 290 and SH 71.

The loan was also used for the 290E Phase III project in the east of Austin, which built three direct roads and flyovers to facilitate free-flow movements between the 290E and SH 130 toll roads.

CTRMA interim executive director and chief financial officer Bill Chapman said: “The refinancing of the TIFIA loans will offer CTRMA significant future debt service savings.

“Lower TIFIA loan interest rates will provide better coverage and help mitigate the impacts of the pandemic, enabling CTRMA to obtain the 183A Phase III TIFIA loan. The lower debt service will also provide future capacity and continued development of projects in the region.”