Transportation Infrastructure Finance | U.S. Department of Transportation

Fact Sheet: Replacement of the Cooper River Bridge

Description

The Arthur Ravenel, Jr. bridge replaces two structurally deficient bridges on U.S. 17, a designated national defense highway, connecting the cities of Charleston and Mount Pleasant, South Carolina and permits modern cargo vessel passage to the Port of Charleston, the second largest container cargo port on the East Coast.  The bridge crossing provides a vital link in the regional roadway network that provides access to major employment centers in North Charleston, commercial and industrial port facilities, and residential and recreational areas east of the Cooper River.

Project Status

The project opened to traffic on July 9, 2005.

Funding Sources

Funding sources are as follows (dollars in millions):

TIFIA Credit Assistance

Direct loan:  $215 million.

Date of credit agreement:  July 11, 2001.

The loan was secured by two primary sources:  (i) payments from the South Carolina Department of Transportation ($8 million per year for 25 years) and (ii) certain revenues from hospitality fees levied by Horry County as well as an intercept of state funds collected by the County, if needed.  (The hospitality fee comprises a 1.5 percent tax on sales of lodging, admissions, and restaurants.)  In addition, certain reserve funds were available as a third source of repayment.

TIFIA Financial Performance

On July 6, 2004, the USDOT and the SCTIB terminated the loan agreement so the SCTIB could issue new tax-exempt bonds backed by the revenues pledged to the TIFIA loan.  The new bonds carry a lower interest rate than the TIFIA loan, the proceeds of which the SCTIB had yet to draw.  This retirement of a TIFIA loan marks a successful milestone, as the Federal credit commitment in 2001 enabled project construction to get underway, to be replaced entirely by private investment after only three years.