Kentucky Gets Federal Loan for Ohio River Bridges Project
Kentucky was awarded a low-interest federal loan that will save an estimated $100 million in financing costs for the Ohio River Bridges Project, Gov. Steve Beshear’s office announced Nov. 20.
The loan, for up to $452 million through the Federal Highway Administration’s Transportation Infrastructure Finance and Innovation Act program, will help fund the $1.3 billion Downtown Crossing portion of the Louisville-Southern Indiana project, according to the governor’s office.
“Approval of this loan underscores the importance of the Ohio River Bridges project to our national transportation system,” Beshear (D) said in a news release.
The Downtown Crossing, which officials broke ground on June 18, will include a new bridge for northbound Interstate 65 traffic between Louisville and Jeffersonville, Ind. The John F. Kennedy Memorial Bridge, which now carries all I-65 traffic, will be converted to carry southbound traffic only, and the Spaghetti Junction will be rebuilt in downtown Louisville. Kentucky and Indiana are working jointly on the $2.6 billion project.
The project will be paid with federal money and bond issuances, which includes toll-backed bonds and bond anticipation notes. The TIFIA proceeds will be used in 2017 to retire the bond anticipation notes, according to the governor’s office. The loan is expected to close in December.
A bi-state entity approved initial toll-base rates ranging from $1 to $10 per crossing for commuters and trucks that pay with electronic transponders, according to the governor’s office.
The East End Crossing, which is the other half of the project, is being built and financed as a public-private partnership among the Indiana Department of Transportation, Indiana Finance Authority and the contracting team, according to Beshear’s news release.
