OCTA has saved $509 million through a series of innovative financing strategies for the I-405 Improvement Project, which is scheduled to be completed later this year.
The strategies include securing and later refinancing a $629 million federal loan through the Transportation Infrastructure Finance and Innovation Act (TIFIA) and taking advantage of volatile interest rates over the past few years to generate additional savings.
“I’m pleased to see OCTA continuing to take an innovative financing approach to maximize available funding for the I-405 Improvement Project,” said OCTA Chairman Gene Hernandez, also the Mayor of Yorba Linda. “Thank you to our partners at the U.S. Department of Transportation for working with us throughout this process and to everyone involved in helping us achieve these immense savings.”
“Our OCTA finance team has remained flexible throughout the project, always ready to act and find creative ways to take advantage of fluctuating interest rates to save taxpayer dollars,” said OCTA CEO Darrell E. Johnson. “I look forward to the public experiencing the full benefits of the I-405 Improvement Project when it’s completed later this year.”
The Benefits
The TIFIA loan will be repaid solely using the revenue collected from drivers who choose to use the 405 Express Lanes being built as part of the I-405 Improvement Project.
Toll revenue collected beyond what it costs to repay the loan will fund transportation improvements for everyone who travels throughout the 405 corridor – whether or not they use the Express Lanes. The realized savings will allow more money to be available sooner to make those additional improvements along I-405.
In addition, OCTA’s project financing will allow the 405 Express Lanes to remain free to two-person carpools during non-peak hours for the first 3 ½ years after the Express Lanes open, a commitment made by OCTA to the community prior to construction.
For more information about I-405 Improvement Project the project, visit here.
