Briefing: Bridge Program Bond Ratings
The state’s program to repair and replace run-down bridges has received triple-A ratings, the highest possible bond rating, from two major rating agencies. The governor’s office says the ratings will save the state $60 million in interest.
What is the bridge program about?
After the collapse of an eight-lane highway bridge in Minnesota in 2007, the state of Massachusetts created the Accelerated Bridge Program. The $3 billion plan is intended to fix or replace 200 bridges over eight years. Since 2008, 13 bridge projects have been finished, and another 62 are scheduled for construction over the coming season.
What bonds are being issued?
The state is selling $575 million of Commonwealth Transportation Fund Revenue Bonds for the bridge program in early December. It will also issue $100 million of grant anticipation notes, to be repaid from future federal grants. This is the first bond sale for the bridge program.
Why the good ratings?
The governor’s office chalks up the triple-A ratings from Moody’s and Standard & Poor’s to the reorganization of the state’s transportation agencies in 2009. That legislation allows the state to secure bonds with gas taxes and Registry of Motor Vehicle fees, and also limits the amount of bonds that can be issued.
What is the program doing in Central Massachusetts?
A number of projects are completed or underway in Central Massachusetts.
The Department of Transportation has finished improving or replacing bridges on Main Street in Framingham, Lake Road in Ashburnham, Lyons Street in Westborough and Pleasant Street in Grafton. Among those now in progress are bridges on Alpine Drive in Southbridge, Hanes Street in Sturbridge, Route 19 in Brimfield, Route 2 in Westminster and Phillipston and Travers Street in Gardner, as well as the elevation of highway clearance over CSX train tracks in six local communities.
Related Links:
Accelerated Bridge Program
Commonwealth Conversations transportation blog
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