Gov. Albert Bryan Jr. unveiled a sweeping bond proposal at this week’s Government House press conference aimed at driving forward critical infrastructure projects and enhancing transportation across the territory. The announcement, which called for amendments to Act 7754, highlighted a strategic push to authorize new bonds through the Public Finance Authority (PFA) to fund priority developments, particularly the next phase of the Veterans Drive project on St. Thomas and significant road projects on St. Croix.
Revitalizing Infrastructure Through Garvee Bonds
The governor’s proposal centers on issuing $76 million in bonds through the Grant Anticipation Revenue Vehicles (GARVEE) structure. Previously, GARVEE bonds, authorized in 2015 under Act 7754, funded essential projects, including the initial phase of Veterans Drive, major highways on St. Croix, the Lorraine Village Bypass, and the Mahogany Road project. While the territory receives approximately $19 million annually in related funding, those already appropriated funds have been depleted over the past seven years, making it necessary to return to the bond market for additional capital.
“Building a better future for Virgin Islanders means investing in infrastructure and transportation that will connect our community and boost economic growth,” Bryan said. He emphasized Tuesday that these investments are not just about roads but about enhancing the quality of life and fostering stronger connections across the territory.
Challenges in Funding Veterans Drive
Asked about the escalating price tag on the Veterans Drive project, Public Works Commissioner Derek Gabriel noted afterward challenges posed by escalating construction costs, which, on the project, has increased by at least a third in the past three years.
In light of these rising expenses, Gabriel indicated that coordinating the Veterans Drive construction with the V.I. Port Authority’s most recent harbor dredging project could help reduce costs by sharing equipment and resources.
The next phase of Veterans Drive requires an additional $48 million – of which $25 million has been secured through a federal RAISE grant. Tuesday, Bryan stressed the urgency of finding the remaining funds to move the project to the bidding phase, calling it “the most important part” of the process.
The governor’s plan also allocates $20 million for a long-awaited ferry between St. Thomas and St. Croix, which would carry passengers, cargo, and vehicles—an investment Bryan said believes will bridge the gap between the districts and strengthen regional ties.
St. Croix’s Share and Legislative Action
While the proposal earmarks $48 million for the Veterans Drive phase on St. Thomas, Bryan highlighted that $29 million would be set aside for St. Croix, including $20 million for the inter-island ferry and $9 million for road improvements, such as the Scenic Drive and La Vallee Road projects. Bryan invited legislative input on the allocation of these funds, noting that senators will be able to decide what projects will included.
The remaining $19 million in the bond issue would be reserved for additional projects on St. Croix. “We didn’t want to take the full $448 million because we have so many infrastructure projects underway, many of which FEMA will cover,” Bryan explained, acknowledging that the territory still owes $53 million from the previous bond issue, which would be consolidated into the new bond package.
