Saturday, December 31, 2011

KY & IN agree on plan to finance and build Ohio River bridges ...

LOUISVILLE, KY (WAVE) -?Kentucky and Indiana have reached consensus on a basic plan to finance and build the Ohio River Bridges Project, keeping the project on target to begin construction in 2012.

Under an agreement in principle reached by Kentucky Gov. Steve Beshear, Indiana Gov. Mitch Daniels and leaders of the Louisville and Southern Indiana Bridges Authority, each state would take the lead in financing and overseeing construction of one half of the project, among the largest transportation projects in the United States.

"This is a big step to having an agreement in principle between the two governors on how the project is going to be paid for," Louisville Mayor Greg Fischer said Thursday.

Kentucky would be responsible for financing and constructing the downtown portion of the project, a new I-65 bridge, a re-decked Kennedy Bridge, modernization of the Kennedy Interchange, and expansion of the I-65 approach in Indiana.

"Indiana is going is going to be responsible for financing and constructing the East End portion of the project which is the new bridge and the new highway approaches including a tunnel in eastern Jefferson County," Fischer said.

That includes a new bridge near Utica, IN, and Prospect, KY; a new highway linking the Lee Hamilton Expressway and Gene Snyder Freeway; and a tunnel in Eastern Jefferson County.

The Bridges Authority would help coordinate, monitor and ensure an interface between the two procurements, which would continue to be carried out as one project under a single financial plan.?

At its October meeting, the Bridges Authority reviewed and discussed six potential delivery options for the project, and then began a process of building consensus between the states on their preferred approach.? Since then, the state sponsors have worked diligently, both internally and in joint discussions, to evaluate different scenarios.

In the course of these discussions, the states decided the landmark project could best be advanced through separate procurements, each of which is expected to take advantage of innovative contracting methods that can save time and money.

"This is an enormous step in our progress to begin building both bridges in 2012," said Kentucky Governor Steve Beshear.? "By playing to each state's strengths, we are lowering the cost of the project, increasing competition, and speeding the construction of these critical bridges.? I appreciate Gov. Mitch Daniels for his efforts to bring this project to fruition, as well as the work of both states' transportation leadership and the Bridges Authority."

A cost-savings plan outlined last January by the two governors and Louisville Mayor Greg Fischer has led to a further reduction in the project's estimated construction price tag from $4.1 billion to $2.6 billion, a $1.5 billion savings. The estimated price tag for each half, the downtown and East End, is virtually the same, $1.3 billion.

"The duel procurement approach of downtown and east offers several distinct advantages.? first it increases competition," Fischer said.

That includes more competition from construction companies, which is expected to drive down the cost of the overall massive project.

Both states plan to use a combination of traditional transportation funds and tolls on the new and improved crossings to pay for construction and financing of the project.

The Bridges Authority will incorporate the relevant cost, funding and revenue components into its financial plan for the project, which is expected to be completed soon on the basis of the agreement announced today.

A more detailed update on these developments will be shared at the Bridges Authority's upcoming quarterly meeting scheduled for next Thursday, January 5, at the Kentucky International Convention Center.

Despite all the good news, tolls are still on the table, but there are no specifics yet.

"For the person who's using the bridge day in and day out, a dollar is still the target.? It's not finalized.? We've seen some models with it as high as $1.50, but a dollar is where we'd like to see all that, and that's the details we'll see worked out in the next several weeks," Fischer said.

The project needs a lot to happen in 2012 to make things go without a hitch.

"One of the most important steps right now will be in the General Assembly," said Congressman John Yarmuth.

That starts in January of 2012.? In April, the federal government is expected to weigh in on a revamped environmental impact study.? If they approve it, that could actually void the River Fields lawsuit.

If the state general assembly and federal government approve the spending and environmental aspect, the project could open for bids in the summer of 2012, with a groundbreaking possible in late 2012.

Copyright 2011 WAVE News. All rights reserved.

Source: http://www.wave3.com/story/16412421/ky-in

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