Major Milestone Reached in the Ohio River Bridges Project
Complete Project Funding Identified
Oct. 2007 - The Federal Highway Administration (FHWA) now has the initial
financial plan for the multi-billion dollar Ohio River Bridges Project. Officials
with the Kentucky Transportation Cabinet (KYTC) and the Indiana Department of Transportation
(INDOT) have signed the document. It was submitted yesterday to the Federal Highway
Administration (FHWA) for review.
The plan has also been submitted to the Kentucky Legislative Research Commission
as required by the General Assembly in Kentucky. The initial financial plan is the
first draft of an official bi-state document that outlines project costs, schedule
and funding mechanisms through completion of the project.
A Financial Plan is required by the FHWA for all projects costing more than $500
million. The financial plan must consider the effect of inflation on project costs,
and the document must be approved by FHWA before federal dollars can be authorized
for construction. The financial plan must also be updated and submitted to the FHWA
on an annual basis.
Next Steps
The FHWA will review the plan and then work with KYTC and INDOT to address any concerns.
That review process is anticipated to take approximately 90 days. If any changes
are deemed necessary, the states would update the plan and resubmit the document
for final approval.
Cost
The cost estimate for the project in year-of-expenditure dollars is $4.068 billion.
Kentucky’s share is estimated to be 72%, or $2.922 billion, and Indiana’s share
is estimated to be 28%, or $1.146 billion. Of Kentucky’s share of the cost, the
Kennedy Interchange comprises more than half at $1.75 billion. As part of the annual
update process, the states will continue to monitor and adjust the cost estimate
as the project progresses and economic conditions change.
Schedule
Based on the funding scenario outlined in the plan, the states estimate the project
completion date at 2024, with the East End Bridge opening to traffic by 2014 and
the Downtown Bridge opening to traffic by 2020.
Funding mechanisms
Both states have outlined a plan including federal and state dollars for full funding
of the project through the 2024 completion date.
Kentucky’s project funding relies on regular federal program funds expected to be
directed to the Ohio River Bridges project through the Cabinet’s Six-Year Highway
Plan. The state will match those federal dollars with state funds and supplement
that with annual federal appropriation earmarks. Indiana’s funding will come from
similar federal and state sources, in addition to the state’s Major Moves Program.
The Ohio River Bridges Project addresses the long-term, cross-river transportation
needs in the Louisville-Southern Indiana region. In 2003, the Federal Highway Administration,
Indiana Department of Transportation and Kentucky Transportation Cabinet agreed
that the only feasible way to meet cross-river transportation needs was to construct
two new bridges and rebuild the Kennedy Interchange. Of a variety of options studied,
the alternatives selected best achieve the transportation needs with the least amount
of impact on environmental resources and the communities.