Chesapeake Bay Bridge-Tunnel Expansion – Financing Package Announced in November 2016

On November 15, 2016, Virginia Gov. Terry McAuliffe’s office announced that financing was in place for a $756-million project to expand the Chesapeake Bay Bridge-Tunnel, which runs for 20 miles between Virginia Beach and Northampton County on Virginia’s Eastern Shore.  (More information on the Bay Bridge-Tunnel is available online at http://www.cbbt.com/.)

Following is an excerpt from the governor’s office news release on the financing development.
“…[F]inancing is complete to build an additional two-lane tunnel under the Thimble Shoal Channel, west of the existing Chesapeake Bay Bridge-Tunnel (CBBT).  The Chesapeake Bay Bridge and Tunnel Commission will finance the $756 million project primarily through federal and state bonds. …The Parallel Thimble Shoal Tunnel Design-Build project was awarded in July [2016] by the Chesapeake Bay Bridge and Tunnel Commission to Chesapeake Tunnel Joint Venture, [which includes] Dragados USA and Schiavone Construction, LLC.  Construction is expected to begin October of next year.

“The Chesapeake Bay Bridge and Tunnel Commission has financed the project through the following:
$338.5 million federal bond [under the] Transportation Infrastructure Finance and Innovation Act (TIFIA) Program, [which] provides credit assistance for qualified projects of regional and national significance…;
$50 million state bond [from] The Virginia Transportation Infrastructure Bank, [which] offers low-interest loans and grants to localities, transportation authorities, and private-sector partners for transportation projects and provides an alternative source of financing for transportation needs in the commonwealth;
$321.5 million Revenue Bond Issue.

“Remaining funds for the project come from the Chesapeake Bay Bridge and Tunnel District’s General Fund.”

Source: Governor McAuliffe Announces $756 Million Project to Expand Chesapeake Bay Bridge-Tunnel, Virginia Governor’s Office News Release, 11/15/16.

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A bridge section of the Chesapeake Bay Bridge-Tunnel as viewed from Kiptopeke State Park in Northampton County, Va., October 2007.

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