Financing in place for I-10 bridge replacement

The Lake Charles Interstate 10 bridge is on schedule – at this time – and all financing is in place.

Wednesday the Louisiana State Bond Commission approved funding for Calcasieu Parish, Louisiana Public Facilities Authority (LPFA). The LPFA is a self-funded financing authority created as a public trust, and unable to comment on financing.

The $2 billion in Senior Lien Revenue Bonds is marked for the constructing, financing, operating and maintaining the bridge and funding capitalized interest, according to the newsletter from Louisiana State Treasurer John Fleming’s office.

The total anticipated cost of the public-private partnership (P3) project is $2.1 billion, $1.2 billion of which is coming from various sources of state and federal funds. (A P3 is an agreement between a government agency, in this case, the DOTD, and a private party, in this case, Calcasieu Bridge Partners, to deliver a public service or asset.

The House and Senate Transportation Committees approved the DOTD’s execution of the P3 agreement for building the bridge on Jan. 30, and the agreement was executed the next day.

“DOTD will make construction milestone payments to the private partners under the P3 agreement, but the P3 agreement was not subject to State Bond Commission approval,” according to Jeff Crouere, a spokesperson from the Treasurer’s office.

Calcasieu Bridge Partners will cover the remaining costs and recoup its investments using a toll system once construction is complete, and Sen. Mark Abraham is hoping it is a profitable endeavor for the company.

“The state will get 15 percent of the profits that the toll authority makes. Their projections, in rough terms, is $150 million to $200 million on that bridge, and the state will make 15 percent of that.”

After Gov. Jeff Landry took office, he negotiated for lower tolls and a percentage of profits, Abraham said.

As far as any changes in the scope of the plan since January, Abraham said it has been determined that the pipe rack, the one that drivers pass under headed north on Sampson in Westlake, can be avoided with a new design. The railroad bridge will not be removed,

“They’ll do a little design work, but it won’t stop progress,” he said.

The first two years, the prep work will be on the approachways. Then the actual bridge construction will begin. The project is estimated to take seven years.