PROVIDENCE – Road and sidewalk improvements are on the way for three Rhode Island communities, thanks to an unconventional financing plan by Rhode Island Infrastructure Bank.
The Providence-based bank is preparing to finance about $17 million in such improvements in Providence, Middletown, and Pawtucket, the bank announced Friday.
The projects will be done through the bank’s Municipal Road and Bridge Program. The program finances projects at 33 percent below market interest rate, and this round of financing will save the three communities undertaking the projects about $2.5 million in interest payments, the bank said.
About $15 million of the cost will be financed through the first public bond issued under the program, with about $2 million coming from the program’s existing funds, the bank said.
Providence will receive $10 million for road and sidewalk improvements, in the process saving the city nearly $1.8 million in interest payments.
Middletown is slated to receive a $5 million for the resurfacing of about eight miles of roads, while Pawtucket will get $2 million to help fund the city’s Pavement Management Program.
Middletown will save about $420,000 in interest payments, while Pawtucket will save about $230,000 in interest payments, the bank said.
RIIB has run the Municipal Road and Bridge Program for about four years, but this will be the first bond issued through the program to raise significantly more money than would otherwise be available to meet the demand for municipal roadway repairs, bank officials said.
“We encourage more Rhode Island cities and towns to explore our program options for their infrastructure needs,” said Infrastructure Bank CEO Jeffrey Diehl.
Scott Blake is a PBN staff writer. Email him at Blake@pbn.com.
