PFA Issuing Bonds To Speed Up Infrastructure Repair, STX Ferry

The Public Finance Authority Monday authorized the issuance of $250 million in Grant Anticipation Revenue Vehicle (GARVEE) bonds to finance infrastructure projects. The projects include a St. Croix-to-St. Thomas ferry, upgrades to Veterans Drive on St. Thomas and St. Croix road improvements.

Last week, the 35th Legislature approved the bond issuance. The government plans to use the money from GARVEE bonds to pay for projects and then pay them off when federal grant money is received. Public Works Commissioner Derek Gabriel told the Senate that the GARVEE bonds would speed up projects, eliminating delays caused by yearly funding allotments.

To facilitate the bond sales, the authority board members also authorized Director of Finance and Administration Nathan Simmonds to engage Duane Morris as legal bond counsel to oversee the issuance of the bonds with an estimated principal amount of $130 million. Duane Morris has more than 900 attorneys in offices across the United States. It has been involved in the territory with refinery issues and power purchase agreements for alternative energy developers.