This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.
A new report commissioned by the Indianapolis City-County Council supports traditional financing for the new Marion County criminal justice complex.
In late 2014 the City of Indianapolis selected the consortium WMB Heartland Justice Partners to develop the project. The wining consortium is composed by Meridiam Infrastructure Indy Justice, Balfour Beatty Investments, Inc. and Walsh Investors, LLC.
The project was expected to be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 35 years but the new report recommends a design-build model. The report was published one week before the Finance and Administration Committee will consider the project. The full council is scheduled to vote on the project model on 20 April.
The report has been carried out by Bart Brown, the council's chief financial officer, and H.J. Umbaugh and Associates. According to the report, the building authority would spend US$96 million less for maintenance than the administration has previously calculated and the Indianapolis City-County Council would save US$191 million more from lower municipal interest rates.
The new consolidated criminal justice campus will include: 3,480 bed detention facility, 750 bed minimum security/ transitional community corrections facility, 32 courtroom courthouse, a law office building, a medical facility, a juvenile court and 100 bed juvenile detention center, a Sheriff's office, a Surface and structured parking facilities, and a Central facilities for maintenance, warehouse, central plant and underground connecting tunnel system.
The total project investment estimated at US$408 million. The city of Indianapolis would pay about US$47 million per year to the preferred bidder if a P3 model is selected.
The project is expected to be operational by 2018.
We have recently reported about several PPP projects in the USA: