Location |
Bloomington to Martinsville, Southwest Indiana |
Project Sponsor / Borrower |
Indiana Finance Authority |
Program Areas |
|
Mode |
Highway |
Description |
The I-69 Section 5 project will reconstruct and upgrade 21 miles of State Route 37 (an existing four-lane divided highway southwest of Indianapolis) between Bloomington and Martinsville, Indiana to full Interstate highway standards. The $466 million project includes four new interchanges and four new overpasses, in addition to improvements at existing interchanges and a third travel lane in each direction within urban areas along the corridor. I-69 Section 5 is one segment of a planned Interstate highway that would extend from Michigan to Texas and facilitate trade and mobility between Canada, the United States, and Mexico. A portion of the I-69 route, from Indianapolis to Port Huron, Michigan, was constructed as part of the original Interstate System, and additional segments of the full route have opened to traffic or are under construction in other states. The remainder of I-69 in Indiana has been implemented in six sections extending 142 miles northeast from Evansville on the Kentucky border to Indianapolis. Sections 1-3 opened in November 2012 linking Evansville and Crane, Indiana. Section 4 opened in December 2015 continuing the alignment to Bloomington. Section 5 is being implemented as a 35-year availability payment DBFOM concession. |
Cost |
$466 million (Total capital cost in year-of-expenditure dollars) |
Funding Sources |
Private Sector Funding
INDOT public sector funds - $93 million (design, right-of-way acquisition, utility relocation, environmental mitigation) |
Project Delivery / Contract Method |
DBFOM (design, build, finance, operate and maintain) |
Private Partner |
I-69 Development Partners
|
Project Advisors /Consultants |
Rubicon Infrastructure Advisors - Financial Advisor to Isolux |
Lenders |
Bondholders |
Duration / Status |
Construction began in late 2014. The project is expected to be fully open to traffic in June 2017. |
Financial Status |
DBFOM contract awarded in February 2014. Financial close occurred on July 23, 2014 when the Indiana Finance Authority issued the project PABs which will be repaid directly by I-69 Development Partners. Once operational, the state of Indiana will make an annual availability payment of $21.9 million (adjusted each year for inflation) to the private partner throughout the 35-year operation and maintenance period. I-69 Development Partners' proposed PAB structure received two indicative investment grade ratings and two full volume underwriting commitments, exceeding the threshold requirements of the RFP. Citigroup and Jefferies were the lead underwriters of the bond issue. The fixed rate PABs will mature in 2046. |
Innovations |
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Related Links / Articles |
I-69 Section 5 Procurement Documents Selected Proposer Financial Proposal Inside Indiana Business: State Selects Team for I-69 Section |
Contacts |
Will Wingfield |