INDOT ready to complete interstate project
“The INDOT project team alongside Walsh Construction accomplished in a few weeks what normally would take many months, and they did it while accelerating the current pace of work along the corridor,” INDOT Commissioner Joe McGuinness said.
The Indiana Finance Authority today completed the settlement transaction to terminate the contractual relationship between I-69 Development Partners and the State, reimburse the developer’s bond holders for $246 million, and return direct control of the I-69 Section 5 project to the Indiana Department of Transportation.
“The State is officially in charge of this important project,” Gov. Eric J. Holcomb said. “Our focus is to complete this crucial stretch of roadway that provides a promising path to economic growth for Hoosiers and businesses in southern Indiana.”
The IFA announced the pending settlement agreement June 16, 2017. Since that time, the financing plan to complete the transaction was approved by the IFA Board and reviewed by the State Budget Committee.
IFA Public Finance Director Dan Huge said his agency will use highway-revenue bonds to retire the developer’s private-activity bonds. Those highway-revenue bonds are rated at AA+ according to statements previously issued by S&P Global, Fitch Ratings and Moody’s Investor Services.
This rating is considerably higher and more advantageous to the State than the BBB and BBB- rating assigned to the developer’s private-activity bonds and will result in interest savings over time.
The 21-mile project between Bloomington and Martinsville is expected to be complete on or before August 2018.
To ensure the project is completed within that timeframe, INDOT has worked closely over the past month with I-69 Development Partners and advisor Walsh Construction to conduct a thorough assessment of work that has been completed and to identify milestones to keep the project on track.
“We have INDOT staff on the ground today working with a team of partners ready to complete this section of the interstate.”
INDOT re-scoped and negotiated more than a dozen subcontractor agreements to retain most of the primary and subcontractors who worked on the project under the previous arrangement.
McGuiness said retaining that experience is invaluable in moving the project forward to completion.