INDIANAPOLIS— Indiana is firming up agreements to work with a private developer to build and maintain the next phase of the Interstate 69 project from Bloomington to Martinsville.
The project — anticipated to be completed in 2016 — will rehabilitate and expand a 21-mile stretch of existing Indiana 37 to bring it up to interstate standards.
In a departure from how earlier phases of the I-69 extension have been funded, the state is planning to enter into a contract with a private development group — The I-69 Development Partners — to design and build the road. Once the road is completed, the developer will then handle the maintenance of the road, such as snow plowing, pothole patching, mowing and any improvements that need to be made, for 35 years.
The cost to design and construct the project is $325 million, and the development group has estimated the cost of operating and maintaining the road upward of that amount, Indiana Department of Transportation spokesman Will Wingfield said.
The state is projecting to pay $80 million while the road is being constructed to drive down the overall capital cost of the project, Indiana Public Finance Director Kendra York told the State Budget Committee on Tuesday. The state will then pay the developer $21.8 million per year for the 35-year period to cover the overall cost of the project, such as designing, constructing, financing and maintaining the road.
If the road is not maintained or unavailable for a period of time, the state is able to reduce the payment made to the developer, York said.
“Clearly it’s in the developer’s best interest to make sure they are doing everything they have to do to live up to the terms of the contract,” York said.
Even with the private partnership, motorists will not pay a toll to use the road, York said. The I-69 Development Partners is a team put together by Isolux Infrastructure Netherlands B.V. and Indiana contractors will be used.
Indiana law required the committee to review the public-private partnership agreement and other agreements involved in the project prior to any state action. Gov. Mike Pence also is required to approve the recommendation.
The upcoming phase of I-69 will extend from just south of Bloomington to just south of Indiana 39 in Martinsville. The initial phases of the project from Evansville to Crane opened in 2012. The current phase under construction between Crane and Bloomington is set to open in late 2014 and early 2015.
“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,” Pence said in February of the project. “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.”