Louisiana is set to float $1.34 billion of private activity bonds in April as part of its largest public-private partnership to date, which will replace an aging bridge over Interstate 10 near St. Charles.
The Louisiana Public Facilities Authority
The approvals come a few weeks after state lawmakers
The project, with a total cost of $3.04 billion, includes a replacement of the nearly 70-year-old Calcasieu River Bridge and renovation and widening of the adjacent nine-mile Interstate 10 corridor in southwest Louisiana.
The private activity bonds will be paid for with toll revenues, which are estimated to total $16.1 billion over the 50-year period, ramping up from around $100 million annually in early years to more than $500 million annually in the later years. Less operations and maintenance, the tolls are expected to bring in a $9.7 billion profit over the term, officials told lawmakers at the Feb. 15 bond commission hearing.
The state’s contribution will total around $1.2 billion which will come from a combination of general obligation bonds and other revenues.
Under revised terms, the state will now get a roughly 15% piece of annual toll profits after operations and maintenance. The money will either go to further buy down toll rates, shorten the lease, or toward infrastructure projects in the area.
The 50-year design, build, finance, operate and maintain I-10 Calcasieu River Bridge replacement project