NJDOT Commissioner Diane Gutierrez-Scaccetti presents the I-Bank Vice-Chairman, Robert Briant Jr., with a $22.6 million check from the State Local Aid Infrastructure Fund, marking the launch of the New Jersey Transportation Bank.
The Murphy Administration announced that the New Jersey Transportation Infrastructure Bank is now offering low interest loans to municipalities and counties to reduce the overall cost of local transportation projects.
New Jersey's first transportation loan program, the Transportation Infrastructure Bank (NJTIB) is a partnership between the New Jersey Department of Transportation (NJDOT) and the New Jersey Infrastructure Bank (I-Bank). The NJTIB provides low interest loans for municipal and county transportation projects.
“The Transportation I-Bank is a unique partnership that will significantly reduce the total cost of local transportation infrastructure by reducing the cost of financing and will enable our communities to increase the number of projects funded,” NJDOT Commissioner Diane Gutierrez-Scaccetti said. “The program will provide opportunities for the design and construction of more expensive local projects that cannot be significantly funded with Local Aid grants.”
“The staffs of the NJDOT and I-Bank have been working together around the clock over the past several months to structure and implement the Transportation I-Bank. Their accomplishments in this short-time frame are impressive and a testament to the partners' commitment to this initiative,” said I-Bank Vice Chairman Robert A. Briant Jr. “The financing program will accelerate the construction of projects and smooth the transition from design to build.”
Modeled after the successful NJ Water Bank (formerly, the New Jersey Environmental Infrastructure Financing Program) and the NJDOT's Local Aid Program, the Transportation Bank was established as part of the Transportation Trust Fund renewal to provide low interest loans for local transportation projects. To get started, NJDOT's Local Aid Infrastructure Fund is providing the NJTIB with $22.6 million generated from the gas tax increase. Interest rates in fiscal year 2019 are anticipated to be between 1.5 and 1.75 percent for terms of up to 31 years.
Loan applications are available at www.njib.gov.