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Case Studies

Louisiana TIMED Program

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  • Location: Louisiana (statewide)
  • P3 Option: Other Innovative P3s - Strategic Program Management
  • Mode: Highway, Bridge, Port, and Airport
  • Description: The TIMED (Transportation Infrastructure Model for Economic Development) Program is a $5.0 billion transportation infrastructure program designed to increase economic development in Louisiana by investing in transportation improvement projects. The program began in 1989 when voters approved a 4¢/gallon tax on gasoline to fund the projects designated by Act 16 of the 1989 Louisiana legislature. The TIMED program includes widening 536 miles of state highways to four lanes on 11 project corridors, widening and/or new construction on three major bridges and improvements to both the Port of New Orleans and Louis Armstrong International Airport.

    The program, originally scheduled for completion in 2004, was significantly behind schedule by the late 1990s and a new completion target of 2031 was estimated. In 2002, the Louisiana Department of Transportation and Development (LA DOTD) took steps to get the program back on track. Debt financing was applied to the project and LA DOTD hired a private manager, Louisiana TIMED Managers (LTM), to oversee the accelerated TIMED schedule. A revised completion date of 2010 was estimated.

    However, the TIMED Program was also impacted by Hurricanes Katrina and Rita in 2005 and resulted in increased cost estimates and completion delays to 2013.

    LTM serves as an extension of LA DOTD and manages the overall program delivery, the financing strategy, public outreach, scheduling, pre-construction activities, and construction administration.
  • Sponsor: Louisiana Department of Transportation and Development
  • Cost: $5.0 billion
  • Type of Finance: Initially pay-as-you-go through motor fuel tax receipts and one bond sale in 1990, later (starting in 2002) additional revenue bond sales
  • Revenue Sources: Dedicated 4¢/gallon motor fuel tax backing revenue bonds
  • Project Delivery / Contract Method: LA DOTD awarded its program management contract using a competitive, quality based model.

    Individual construction contracts are being awarded using design-bid-build methods and one bridge project will utilize legislative-approved design-build delivery, allowing for LA DOTD's first experience with design-build.
  • Private Partner: Louisiana TIMED Managers (LTM) - joint venture of Parsons Brinckerhoff, the LPA Group, and Gulf Engineers & Consultants (GEC)
  • Project Advisors: Cypress Capital Corporation - financial
  • Lenders: Bondholders
  • Duration Status: LA DOTD has now projected completion of the TIMED Program by 2013 rather than the 2002 estimate of 2031. The following program projects have been completed:

    • U.S. 90 from Morgan City to Houma

    • WestBank Expressway in Jefferson Parish from Ames Blvd. to Avenue D

    • New Orleans International Airport improvements

    • Port of New Orleans improvements

    • LA 15 widening

    • Tchoupitoulas Street (New Orleans) improvement

    • West Napoleon Avenue improvements

  • Financial Status: A $264 million bond sale in 1990 provided initial funding, and the program continued on a pay-as-you-go system. In August 2002, with the guidance of LTM, a $275 million bond sale was issued as the first step in the conversion to a debt-financed program. A $548 million bond sale occurred in 2005 and another $1.1 billion in 2006. Additional bond sales are planned through 2010.
  • Innovations: Innovative program management partnership wedding financial planning and program management

    Innovative mixture of debt and pay-as-you-go financing to significantly accelerate program completion
  • Related Links / Articles:
    Louisiana TIMED Program Website

    TIMED Program Annual Report (2007-2008)
  • Contact:
    LTM Public Outreach Office
    1-866-TIMED LA or 1-866-846-3352
    6300 Corporate Boulevard, Suite 200
    Baton Rouge, LA 70809
    Fax: 225.906.1400
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