The Real Cost of the ICC: $3 Billion

Governor Ehrlich and the State Highway Administration (SHA) originally priced the ICC at $1.7 billion, but a recent report increased the cost of the road to as much as $2.1 billion. In order to cover the enormous cost of building the ICC, Governor Ehrlich wants Maryland to take out a $1 billion loan called a GARVEE bond, which stands for Grant Anticipation Revenue Vehicle.

GARVEE bonds are risky because their repayment is based on unknown federal transportation allocations from Congress in future years. GARVEE bonds are very expensive to repay: a $1 billion GARVEE bond will cost $2.2 billion to repay at a rate of more than $60 million dollars a year for 30 years. With the $1.2 billion in interest added to the original $1.7 billion construction cost, the total is $2.5 billion. More loans will be needed to cover the remaining $700 million.

In addition to the taxpayer dollars that will fund the ICC, the highway is being proposed as a toll road costing as much as $4.50 per trip.