Kentucky officials study financing options for new Ohio River link
The Trucker News Services
7/15/2008
FRANKFORT, Ky. — Kentucky Transportation Cabinet officials are reviewing findings of a study that examines financing options for a new Ohio River crossing to link Interstate 69 between Henderson, Ky., and Evansville, Ind.
“Gov. (Steve) Beshear supports the I-69 project and the efforts of the people in western Kentucky to move this initiative along,” Transportation Secretary Joe Prather, said. “This study reveals what we’ve suspected: that financing the construction of the I-69 bridge will require the same determination and creative thinking that will be necessary for the other mega-projects across the state.”
The study, commissioned by the cabinet, indicates it would be difficult to pay for construction of a river crossing with tolls alone. It provides limited options, including combinations of creative financing, as possible routes to pay for the project.
The study indicates tolling could pay for a portion of a new I-69 Ohio River bridge, 13 miles of new interstate and necessary interchanges required to connect I-164, south of Evansville, with the Breathitt-Pennyrile Parkway, just south of Henderson.
The close proximity of the U.S. 41 Twin Bridges to the proposed I-69 bridge would make it difficult to attract traffic to the new interstate without tolls also being added to the existing bridges, according to the study.
“While the study doesn’t provide a direct path for financing this important transportation and economic link, it does provide us with a starting point for discussions on how to best finance the project,” Ted Merryman, KYTC chief district engineer in Madisonville, said.
Kentucky has received congressional approval for routing 150 miles of I-69 along the existing lanes of the Breathitt-Pennyrile Parkway, the Wendell Ford-Western Kentucky Parkway, I-24, and the Julian Carroll-Purchase Parkway. The proposed 13-mile section and river crossing at Henderson connect Kentucky’s portion of the interstate with a new 143 mile section being constructed from Evansville to Indianapolis.
The study suggests escalating construction costs, the result in large part to higher fuel prices and world demand for steel and concrete, are creating a sense of urgency to move the project ahead. Based on the construction inflation, total construction costs for the project would significantly increase by 2017.
Projected costs have increased $750 million since the last estimate in the draft environmental impact statement in 2003 dollars, according to the study. Updated total project costs are estimated to be $1.4 billion, with Kentucky’s share around $943 million.
The study also looked at other sources of funding, including local and regional bonding options and private leasing options.
In Indiana, officials are planning to break ground this week on that state’s first section of I-69 construction between Evansville and Indianapolis. 8
