The Financial Plan has also been submitted to the Kentucky Legislative Research Commission, as required by the General Assembly in Kentucky.  The initial financial plan is the first draft of an official bi-state document that outlines project costs, schedule and funding mechanisms through completion of the project. 

A Financial Plan is required by the FHWA for all projects with budgets exceeding $500 million.  The financial plan must consider the effect of inflation on project costs, and the document must be approved by FHWA before federal dollars can be authorized for construction.  The financial plan, which must be updated and submitted annually to the FHWA, provides the Bridges Project with a financial “road map.”

 

Next Steps

The FHWA will review the plan and then work with KYTC and INDOT to address any concerns.  That review process is anticipated to take approximately 90 days after the submittal to FHWA.  If any changes are deemed necessary, the states would update the plan and resubmit the document for final approval.

Cost

The cost estimate for the project in year-of-expenditure dollars is $4.068 billion.  Kentucky’s share is estimated to be 72%, or $2.922 billion, and Indiana’s share is estimated to be 28%, or $1.146 billion. As part of the annual update process, the states will continue to monitor and adjust the cost estimate as the project progresses and economic conditions change.

Schedule

Based on the funding scenario outlined in the plan, the states estimate the project completion date at 2024, with the East End Bridge opening to traffic by 2014 and the Downtown Bridge opening to traffic by 2020. 

Funding mechanisms

Both states have outlined a plan including federal and state dollars for full funding of the project through the 2024 completion date. 

Kentucky’s project funding relies on regular federal program funds expected to be directed to the Ohio River Bridges project through the Cabinet’s Six-Year Highway Plan.  The state will match those federal dollars with state funds and supplement that with annual federal appropriation earmarks.  Indiana’s funding will come from similar federal and state sources, in addition to the state’s Major Moves Program.