Financing is complete for Chesapeake Bay Bridge-Tunnel
Gov. Terry McAuliffe says that financing is complete for the expansion of the Chesapeake Bay Bridge-Tunnel that connects Virginia Beach with the Eastern Shore.
The Chesapeake Bay Bridge Tunnel and Commission will finance the $756 million project mostly through federal and state bonds.
The Parallel Thimble Shoal Tunnel Design-Build project will build an additional two-lane tunnel under the Thimble Shoal Channel, west of the existing Chesapeake Bay Bridge-Tunnel (CBBT).
Construction was awarded in July by the Chesapeake Bay Bridge and Tunnel Commission to Chesapeake Tunnel Joint Venture, which includes Dragados USA and Schiavone Construction LLC. Construction is expected to begin next October.
The Chesapeake Bay Bridge and Tunnel Commission has financed the project through the following:
· $338.5 million federal bond – Transportation Infrastructure Finance and Innovation Act (TIFIA)
· $50 million state bond – The Virginia Transportation Infrastructure Bank offers low-interest loans and grants to localities, transportation authorities and private-sector partners for transportation projects and provides an alternative source of financing for transportation needs in the commonwealth.
· $321.5 million revenue bond Issue
· Remaining funds for the project come from the Chesapeake Bay Bridge and Tunnel District’s General Fund.
“The Commonwealth’s infrastructure bank issues low-interest loans to help fund high priority projects that will improve transportation and benefit the economy,” Transportation Secretary Aubrey Layne said in a statement. “The Parallel Thimble Shoal Tunnel is a regional transportation priority, included in the Hampton Roads Transportation Planning Organization’s long-range planning and improvement program. The new tunnel will carry more traffic safely and efficiently, further improving transportation for the entire region.”