CHESAPEAKE, Va. (WAVY) — Governor Terry McAuliffe on Tuesday announced that financing has been secured to build a new two-lane tunnel under the Thimble Shoal Channel, west of the Chesapeake Bay Bridge-Tunnel (CBBT).
The Parallel Thimble Shoal Tunnel Design-Build Project was awarded in July by the Chesapeake Bay Bridge and Tunnel Commission to Chesapeake Tunnel Joint Venture.
“This new tunnel will expand capacity and improve safety for travelers who use the CBBT, as well as protect the economic competitiveness and quality of life of the Hampton Roads region,” Governor McAuliffe said.
Construction will begin on Island 1 in the fall of 2017 and is expected to take about five years.
The Chesapeake Bay Bridge and Tunnel Commission will finance the $756 million project through federal and state bonds:
- $338.5 million federal bond — Transportation Infrastructure Finance and Innovation Act Program provides credit assistance for qualified projects of significance, such as the Parallel Thimble Shoal Tunnel Project.
- $50 million state bond — The Virginia Transportation Infrastructure Bank offers low-interest loans and grants for transportation needs and projects in the Commonwealth.
- $321.5 million — Revenue Bond Issue
Remaining funds for the project come from the Chesapeake Bay Bridge and Tunnel District’s general fund.
Learn more at the project website.