The bonds will cover the cost of rebuilding some of Michigan’s most highly traveled freeways, including a $60-million project in progress on I-496 west of Lansing. When all of the $3.5-billion bonds are sold over the next few years, they will finance or help accelerate rebuilding or major rehabilitation of 122 major highways across the state.
“For too long, our freeways have been held together with patches and emergency repairs,” Whitmer said. “The Rebuilding Michigan program assures Michiganders across the state that they can drive to work and drop their kids at school on safe and reliable roads for many decades to come. It has also allowed us to start moving dirt this year, without an increase at the gas pump.”
In a unanimous vote on January 30, the Michigan State Transportation Commission authorized the department to issue and sell $3.5 billion in bonds backed by state trunkline revenues.
“Through bonding, we can completely rebuild some important freeways that we otherwise could only afford to resurface,” MDOT Director Paul C. Ajegba said. “The successful sale of the bonds and positive market reaction also allows us to accelerate some non-freeway projects across the state.”
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Total proceeds will be $1.017 billion from the $800 million in bonds closed on. The all-in true interest costs are 2.727 percent. The maximum annual debt service maintains 6.4 times coverage against revenues, well above the four times coverage required by State Transportation Commission policy.
