(1) The department of transportation is authorized to reimburse, pursuant to contract, counties, cities, or incorporated towns for maintenance or construction of highways which are part of the state highway system. Such reimbursement may be over a period of time, and any funds available to the department of transportation for the maintenance and construction of public highways may be used.
(2) Any municipality, county, or political subdivision may enter into an intergovernmental agreement with the department of transportation to loan to the department of transportation funds necessary to accelerate the completion of state highway projects. Such loaned funds may be repaid by the department of transportation from any funds available to that department for the maintenance and construction of public highways. Such acceleration of projects must be approved by the transportation commission and the governing board of the municipality, county, or political subdivision involved. The construction of projects conducted pursuant to this section shall be carried out under the supervision of the chief engineer of the department of transportation, who may contract with private parties for construction services. Any municipality, county, or political subdivision may contract with private parties for construction services when conducting projects pursuant to this section.
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