Indiana has committed to using a public-private partnership (PPP; P3) to deliver a six figure road project and has begun a timetabled procurement process.
The ‘Hoosier State’ pointed out the PPP—involving Interstate 69 (I-69)—will be an availability payment design, build, operate, finance, and maintain (DBOFM) concession.
The Indiana Department of Transportation (INDOT) and Indiana Finance Authority (IFA) released a request for qualifications (RFQ) for the project with a June 10 due date.
INDOT and the Authority expect to come up with a bidder shortlist by August, according to the RFQ. A bidder shortlist would then be published July 30, the RFQ stated.
A “final” request for proposals (RFP) would go out in October and be due in January. Commercial close would take place in March 2014, with financial close slated for May.
The Indianapolis-headquartered Department released the RFQ Wednesday. The 77-page document revealed the concession has a 35-year term.
INDOT and IFA cited the “success” of using availability payment in the ‘East End Crossing’ P3.
The ‘East End Crossing’ is the Indiana portion of the $2.6 billion ‘Ohio River Bridges Project,’ a cross-state ‘megaproject’ to put up a bridge linking Indiana to neighboring Louisville, Ky.
A press statement announcing the RFQ went on to characterize Indiana as “a national leader in leveraging private capital” with surface transportation infrastructure.
Structuring the project as an availability payment P3 will offset revenue risk associated with tolling, the press statement said.
The P3 will encompass 23-mile ‘Section 5’ of I-69 from Bloomington to Martinsville, Ind. The 142-mile Interstate 69 is part of the ‘NAFTA Superhighway’ from Canada to Mexico.
Indiana began considering using a PPP for the project after a request for information (RFI) in January.
The US Midwest state has estimated the I-69 Section 5 project could cost from $350 million to $500 million.