Kentucky looks to TIFIA for $1.4 billion bistate bridge with Indiana

I-69 Ohio River Crossing

Kentucky is hoping to snag a low-cost federal transportation loan to build a new $1.4 billion toll bistate bridge linking the commonwealth with Indiana that will connect the Interstate 69 national trade corridor.

The state has also opted for a conventional design-build contract after considering structuring the project as a public-private partnership.

The Kentucky Public Transportation Infrastructure Authority, or KPTIA, on Thursday approved the latest financial plan — which is not yet public — as well as a resolution to enter into a  bi-state development agreement with Indiana for the $933 million second stage of the project.

The most recent public financial plan, from last October, put the overall price tag at $1.39 billion, which would come from a mix of state and federal funds and toll revenue.

KPTIA on Friday also approved a resolution to pursue a Transportation Infrastructure Finance and Innovation Act loan.

A spokesperson for the Kentucky Transportation Cabinet confirmed the state will not pursue a P3 for the project, and said toll-revenue bonds are unlikely.

"While the financial plan allows KPTIA to pursue a TIFIA loan or toll revenue bonds, we intend to only use TIFIA," the spokesperson said.

The U.S. Department of Transportation in July lifted the TIFIA loan financing cap to 49% from the current 33% cap for all transportation projects.

The I-69 Ohio River Crossing is more than 20 years in the planning and in the end will feature a four-lane, tolled bridge carrying Interstate 69 from southern Indiana to northern Kentucky.

"This is a significant milestone for the new I-69 Ohio River Crossing, a key interstate connection that is going to help with the safe and reliable transit of people and goods in western Kentucky and throughout this part of the country," said Gov. Andy Beshear Friday in a statement. "This bridge is a priority for Team Kentucky and we're taking these steps to move us closer to breaking ground and making this long-awaited connection a reality."

The new span is supposed to be a key connection in the National I-69 Corridor, which runs from Michigan's Canadian border to Texas' Mexican border. I-69 will eventually run for 1,660 miles across the country. The road currently consists of 10 nonconnected segments, with progress varied depending on the state.

The design-build contract for the key second phase is expected to be awarded in late 2026 and construction is expected to begin in early 2027 and be complete in 2031, officials said.

The October financial plan said the project needs federal grants to move forward. The states previously failed to snag a Bridge Investment Program federal grant. They have applied for the Multimodal Project Discretionary grant program.

The new bistate agreement is between the Kentucky Transportation Cabinet and KPTIA and the Indiana Department of Transportation and the Indiana Finance Authority. It lays out the terms for the financing, procurement, development and construction of the new span.

KPTIA will be the primary authority for the financing, development, construction, operation and maintenance of phase 2. Toll rates will be determined by a bi-state tolling body made up of representatives of both states.

The work will extend I-69 by six miles and feature new interchanges. The four-lane toll bridge will replace a pair of bridges that now carry U.S. Highway 41 across the river. One of the bridges will remain open as a non-tolled alternative.