U.S. Department of Transportation, through the U.S. Transportation Secretary Foxx, has announced a US$840 million loan for the Grand Parkway Project in Greater Houston.

The loan is expected to be drawn upon by December 2016 to refund existing subordinate tier toll revenue bonds used to pay for the design and construction of specific sections of the project.

Fitch Ratings has assigned a BBB+ rating with a Stable Outlook to the TIFIA loan.

TIFIA provides federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects. Since its launch, the TIFIA program has helped 40 projects turn almost $15.6 billion in DOT assistance into more than $58 billion in infrastructure investment across America. The transportation law, Moving Ahead for Progress in the 21st Century (MAP-21), transformed TIFIA into one of the largest transportation infrastructure loan programs in history, making up to $17 billion available in credit assistance for critical infrastructure projects.

The US$2.5 billion project will improve safety, in addition to adding highway capacity in the region. The Grand Parkway Projectis, which is part of the broader Grand Parkway System, a proposed 184-mile highway that crosses seven counties and encircles the greater Houston metropolitan area from State Highway 146 in Galveston County to State Highway 146 in Baytown, will include a four-lane, 55-mile toll road in northwest Harris County and southeast Montgomery County.