Indiana’s deal to build a new Ohio River bridge from Utica to eastern Jefferson County is the state’s second arrangement giving private business control over transportation projects in ways that once belonged solely to state government.
But unlike the lease of the Indiana Toll Road, which pumped billions of dollars into state coffers, this deal puts Indiana on the hook for as much as $2 billion over three decades in payments to a consortium that will design
, build and operate the eastern span and surrounding roads.
, build and operate the eastern span and surrounding roads.
The “public-private partnership” agreement that was finalized in late March places the burden on Indiana to pay the consortium — WVB East End Partners — a series of annual, escalating payments starting at $36.9 million once the bridge is open — regardless of how much toll revenue is collected and split with Kentucky as part of the larger Ohio River Bridges Project.
But Indiana officials say the approach allows the long-awaited bridge completing the Interstate 265 loop to be built for almost $225 million less than earlier estimates and to open by fall 2016. And, they say, it requires WVB to meet a series of construction
and maintenance goals or risk losing some of its payments.
and maintenance goals or risk losing some of its payments.
Indiana’s funding approach uses so-called “availability payments” that are due to WVB only after the bridge and nearby roads are open.
Kendra York, director of the Indiana Finance Authority, and state budget officials believe their share of toll revenue will be enough to cover those payments, which WVB will use to pay off debt on bonds issued last month, cover insurance and other overhead costs, while also funding repairs and maintenance work and stocking a reserve fund, according to bond documents.
and stocking a reserve fund, according to bond documents.
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