Infrastructure Bank Saves Municipalities Money for Road Improvement Projects

Rhode Island Infrastructure Bank has issued the first public bond for the Municipal Road and Bridge Program, totaling $15 million. The bond issuance will increase the amount of capital available to invest in local road and bridge projects and provide greater certainty that funds will be available to meet program demand. The program finances projects at 33% below-market interest rate and this round of financing will save the three communities that are receiving financing approximately $2.5 million in interest payments.

The Town of Middletown and the City of Pawtucket will save $700,000 from loans recently closed through the Municipal Road and Bridge Program, totaling $7 million for infrastructure repair projects. Middletown is set to receive a $5 million loan for the resurfacing of approximately eight miles of roadway. Pawtucket will receive $2 million to help fund the City’s Pavement Management Program, which calls for the resurfacing of roughly 30 miles of roadway. The bond will also provide $10 million in funds to the City of Providence for road and sidewalk improvement projects, saving the City nearly $1.8 million in interest payments.

“We are pleased to provide municipalities with a significant savings for vital road and bridge projects through this program,” said Jeffrey Diehl, CEO of the Infrastructure Bank. “The bond financing program increases our ability to meet demand while also assuring availability of capital to invest.  We encourage more Rhode Island cities and towns to explore our program options for their infrastructure needs.”