The Indiana Finance Authority (IFA) Board Feb. 19 made the preliminary selection of I-69 Development Partners, a team led by Isolux Infrastructure Netherlands B.V. to design, build, finance, operate and maintain I-69 Section 5 from Bloomington to Martinsville. Isolux has partnered with the local resources of contractors E&B Paving of Anderson, Force Construction Company of Columbus and Gradex Inc. of Indianapolis to preserve and upgrade the existing state Road 37 to interstate standards.
The preferred proposal would design and build the project for $325 million. Construction will begin later this year and the 21 new mi. (33.8 km) of interstate is scheduled to open by the end of 2016, several years ahead of schedule. The contract will limit the length and duration of lane closures to help maintain traffic flow for existing SR 37 traffic.
“I am firmly committed to finishing what we started with I-69 from Evansville to Indianapolis so products and people will be able to move even more freely, and towns will be open to commerce and opportunity for more Hoosiers,” said Gov. Mike Pence. “The private sector can harness a different character of innovation to find greater efficiencies, and this project will continue Indiana’s strong track record of partnering to deliver quality projects on budget and ahead of schedule.”
Indiana is a national leader in leveraging private capital and innovations to deliver transportation infrastructure sooner than expected and at the lowest possible cost to taxpayers. For I-69 Section 5, Indiana leveraged its stellar credit rating to attract low-cost private sector financing using an availability payment form of public-private partnership (P3).
Availability payment P3s transfer cost, schedule and quality risks away from taxpayers during such time that the private sector is responsible for construction, operations and maintenance. If the road isn’t made “available” to the public in compliance with performance standards in the contract, the recurring, inflation-adjusted payments are reduced accordingly.