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GARVEE AGREEMENT ADVANCES ENIGHED PROJECT

Oct. 31, 2001 – A formal agreement between the V.I. government and the Port Authority to apply for $17 million in GARVEE bonds represents progress on the Enighed Pond commercial port project, VIPA executive director Gordon Finch said Wednesday.
In a VIPA press release distributed late Wednesday, Finch said Gov. Charles W. Turnbull has approved the agreement.
Finch said the bond money will cover the projected $16 million cost of the Enighed Pond project plus $1 million worth of improvements to roads adjacent to the port.
The release did not say when the agreement was approved by the governor or when application for the GARVEE funds would be made. Port Authority spokeswoman Monifa Marrero could not be reached for additional information.
Finch said that, in light of the agreement, he is positive the Federal Highway Administration will approve advance construction funding through the GARVEE bonds.
GARVEE stands for Grant Anticipation Revenue Vehicles. States and territories can issue GARVEE bonds, which are backed by anticipated annual Federal Highway Administration funding. In the case of the Virgin Islands, they are to be issued by the Public Finance Authority, backed by the territory's annual $12.7 million transportation grants from the FHA.
As soon as the FHA approves the deal, Finch said, the Port Authority will send out requests for proposals to design and build the Enighed Pond commercial port — a project in the planning for the last three decades. He said bids will be advertised for two months, with the Port Authority having another two months to pick the contractor.
Finch said the Port Authority also will issue construction bids for the Red Hook marine terminal project.
In a complicated deal, he said, the Port Authority will turn over $4 million to the government's General Fund that was saved in a sinking fund toward the Enighed Pond project because the GARVEE bonds will pay the full cost of that project. Additionally, the government will advance $2.5 million to the Port Authority to fund part of the Red Hook marine terminal project, with the Port Authority to reimburse the government when money from the GARVEE bonds come in.
The Port Authority will pay for the rest of the $5 million Red Hook project, and the Port Authority and the Public Works Department will split the cost of improving roads for the marine terminal, estimated at $1 million.
The Port Authority and the V.I. government had initially agreed to share funding of the Enighed Pond project, but when the GARVEE bonds became available, they developed an alternative funding method.
"This is an excellent demonstration of how agencies within the V.I. government are working together toward the improvement of our islands," Finch said.

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Oct. 31, 2001 - A formal agreement between the V.I. government and the Port Authority to apply for $17 million in GARVEE bonds represents progress on the Enighed Pond commercial port project, VIPA executive director Gordon Finch said Wednesday.
In a VIPA press release distributed late Wednesday, Finch said Gov. Charles W. Turnbull has approved the agreement.
Finch said the bond money will cover the projected $16 million cost of the Enighed Pond project plus $1 million worth of improvements to roads adjacent to the port.
The release did not say when the agreement was approved by the governor or when application for the GARVEE funds would be made. Port Authority spokeswoman Monifa Marrero could not be reached for additional information.
Finch said that, in light of the agreement, he is positive the Federal Highway Administration will approve advance construction funding through the GARVEE bonds.
GARVEE stands for Grant Anticipation Revenue Vehicles. States and territories can issue GARVEE bonds, which are backed by anticipated annual Federal Highway Administration funding. In the case of the Virgin Islands, they are to be issued by the Public Finance Authority, backed by the territory's annual $12.7 million transportation grants from the FHA.
As soon as the FHA approves the deal, Finch said, the Port Authority will send out requests for proposals to design and build the Enighed Pond commercial port -- a project in the planning for the last three decades. He said bids will be advertised for two months, with the Port Authority having another two months to pick the contractor.
Finch said the Port Authority also will issue construction bids for the Red Hook marine terminal project.
In a complicated deal, he said, the Port Authority will turn over $4 million to the government's General Fund that was saved in a sinking fund toward the Enighed Pond project because the GARVEE bonds will pay the full cost of that project. Additionally, the government will advance $2.5 million to the Port Authority to fund part of the Red Hook marine terminal project, with the Port Authority to reimburse the government when money from the GARVEE bonds come in.
The Port Authority will pay for the rest of the $5 million Red Hook project, and the Port Authority and the Public Works Department will split the cost of improving roads for the marine terminal, estimated at $1 million.
The Port Authority and the V.I. government had initially agreed to share funding of the Enighed Pond project, but when the GARVEE bonds became available, they developed an alternative funding method.
"This is an excellent demonstration of how agencies within the V.I. government are working together toward the improvement of our islands," Finch said.