The Indiana Finance Authority and I-69 Development Partners have completed the sale of tax-exempt, private-activity bonds and reached financial close on the project to design, build, finance, operate and maintain I-69 Section 5 from Bloomington to Martinsville.
Earlier this month, the IFA sold nearly US$244 million in private-activity bonds, on behalf of the private developer, which will then repay the bond holders directly. I-69 Development Partners is investing more than US$40 million of its own funds and is responsible for all construction costs and the risks associated longer term with the operations and maintenance of I-69 Section 5.
I-69 Development Partners is a team led by Isolux Infrastructure Netherlands B.V. Isolux has partnered with the local contractors E&B Paving of Anderson, Force Construction Company of Columbus and Gradex Inc. of Indianapolis. Isolux's subsidiary, Corsan-Corviam Construccion S.A., will lead the desing-build team and the joint venture of Arizona-based AZTEC Engineering Group, Inc. and Técnica y Proyectos S.A. (TYPSA) will execute design of the road.
Kendra York, Indiana Public Finance Director, stated:
We encouraged the proposers to approach the design, construction, finance, operation and maintenance of I-69 Section 5 in a way that maximizes the value to the taxpayers while still delivering a quality product. Competition resulted in a proposal from I-69 Development Partners that met all project objectives while providing the state and the taxpayers with an extremely competitive bid.
The total project investment is estimated at US$325 million.
Construction will begin later this year and the 21 new miles of interstate are scheduled to open by the end of 2016, several years ahead of schedule. The RFQ for Section 5 was published on May 23, 2013.
The project will use an availability payment structure and the concessionaire will get remunerated according to its work with operation and maintenance of the road stretch.
The new I-69 between Evansville and Indianapolis is a key component to the future economic vitality of southwestern Indiana, and will connect an entire region with improved access to jobs, education and healthcare.
The 142-mile I-69 corridor was divided into six independent sections in the Tier 1 Final Environmental Impact Statement, which was approved with a Record of Decision in March 2004.
The first three sections opened for business in November 2012, saving motorists more than 30 minutes of travel time between Evansville and Crane. Construction is underway on all 27 miles of I-69 Section 4 between Crane and Bloomington.
I-69 Section 5 involves rehabbing and upgrading 21 miles of the existing, four-lane State Road 37 to interstate standards. I-69 Development Partners expects to begin construction in the Bloomington area this fall and open the 21 new miles of interstate by the end of 2016.