Financial Plan Approved by Federal Highway Administration
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January 2008 – Yesterday the Federal Highway Administration (FHWA) approved
as submitted the initial financial plan for the multi-billion dollar Ohio River
Bridges Project. The document outlines project costs, schedule and funding mechanisms
through completion of the project.
Officials with the Kentucky Transportation Cabinet (KYTC) and the Indiana Department
of Transportation (INDOT) submitted the plan in early October to the FHWA for review.
“We are pleased that the Federal Highway Administration has confidence in
the plan we have outlined,” said Matt Bullock, Interim Project Manager for
the Kentucky Transportation Cabinet. “This is an important step in the
process for us. We will engage the legislature as we continue this discussion
regarding the best ways to finance this project.”
With the approval of the financial plan, federal dollars can now be authorized for
use in project construction. A Financial Plan is required by the FHWA for
all projects costing more than $100 million and must consider the effect of inflation
on project costs. The financial plan must be updated and submitted to the
FHWA on an annual basis.
“With an aggressive design and construction schedule ahead of us, this is
great news for the project,” commented Indiana Department of Transportation’s
Project Manager Paul Boone. “We’ll continue coordinating with
the FHWA to maintain forward movement.”
Next Steps
The Kentucky General Assembly will review the financial plan during its 2008 session.
A final determination about funding of the Ohio River Bridges project will depend
on this legislative assessment.
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. Completion of the Kennedy Interchange
is projected for 2024.
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 prudent and feasible way to meet cross-river transportation
needs is 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.