The Louisiana Department of Transportation and the Federal Highway Administration signed an agreement today finalizing the use of an approved federal bond granted to the state earlier this year, according to an announcement from the governor’s office.
“The nearly $14 billion backlog of infrastructure projects in our state dictates that we do something both effective and creative in order to meet our needs, and while bonding federal funds for these critical projects was not my administration’s first choice, it is an opportunity for us to move forward,” says Gov. John Bel Edwards. The 12-year bond payments will be expedited and will allow the DOTC to increase its federal investments in rural Louisiana.
The up-to $650 million Grant Anticipation Revenue Vehicle Bonds, also known as GARVEE bonds, will allow for construction on major infrastructure projects in the state that have yet to be constructed due to budgetary restraints. These projects include:
• A substantial portion of the I-10 reconstruction and widening from the Mississippi River Bridge to the I-10/I-12 split in Baton Rouge.
• A new interchange on I-10 in Kenner at Loyola Drive to serve the new Armstrong Airport terminal currently under construction.
• A new access from I-20 directly into Barksdale AFB in Bossier City.
• Up to 10% of project costs for new toll bridges (the Belle Chasse bridge and tunnel replacement project would be eligible if the funds are necessary.
An underwriter for the projects will be selected in late September. Additionally, the bid process for the Loyola interchange and Barksdale entrance projects will begin in 2019.
