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Project Profiles

I-69 Section 5


Bloomington to Martinsville, Southwest Indiana

Project Sponsor / Borrower

Indiana Finance Authority
Indiana Department of Transportation

Program Areas

Project FinanceP3




The I-69 Section 5 project will reconstruct and upgrade 21 miles of State Route 37 (an existing four-lane divided highway southwest of Indianapolis) between Bloomington and Martinsville, Indiana to full Interstate highway standards. The $466 million project includes four new interchanges and four new overpasses, in addition to improvements at existing interchanges and a third travel lane in each direction within urban areas along the corridor.

I-69 Section 5 is one segment of a planned Interstate highway that would extend from Michigan to Texas and facilitate trade and mobility between Canada, the United States, and Mexico. A portion of the I-69 route, from Indianapolis to Port Huron, Michigan, was constructed as part of the original Interstate System, and additional segments of the full route have opened to traffic or are under construction in other states.

The remainder of I-69 in Indiana has been implemented in six sections extending 142 miles northeast from Evansville on the Kentucky border to Indianapolis. Sections 1-3 opened in November 2012 linking Evansville and Crane, Indiana. Section 4 opened in December 2015 continuing the alignment to Bloomington.

Section 5 is being implemented as a 35-year availability payment DBFOM concession.


$466 million (Total capital cost in year-of-expenditure dollars)

Funding Sources

Private Sector Funding

  • Private Activity Bonds (PABs) - $243.6 million
  • PAB sale premiums - $8 million
  • Equity - $40.5 million
  • Milestone Payments (from Indiana Finance Authority) - $80 million (funded from state and federal sources)

INDOT public sector funds - $93 million (design, right-of-way acquisition, utility relocation, environmental mitigation)

Project Delivery / Contract Method

DBFOM (design, build, finance, operate and maintain)

Private Partner

I-69 Development Partners

  • Isolux Infrastructure Netherlands B.V. (equity partner)
  • Public Sector Pension Investment Board (Canadian Crown corporation providing pension plans for the Public Service of Canada, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force) (equity partner)
  • Corviam Construcción, S.A. (design-builder)
  • AZTEC/TYPSA, Gradex, Force, E&B Paving, Burgess & Niple (subcontractors)

Project Advisors /Consultants

Rubicon Infrastructure Advisors - Financial Advisor to Isolux



Duration / Status

Construction began in late 2014. The project is expected to be fully open to traffic in June 2017.

Financial Status

DBFOM contract awarded in February 2014. Financial close occurred on July 23, 2014 when the Indiana Finance Authority issued the project PABs which will be repaid directly by I-69 Development Partners.

Once operational, the state of Indiana will make an annual availability payment of $21.9 million (adjusted each year for inflation) to the private partner throughout the 35-year operation and maintenance period. I-69 Development Partners' proposed PAB structure received two indicative investment grade ratings and two full volume underwriting commitments, exceeding the threshold requirements of the RFP. Citigroup and Jefferies were the lead underwriters of the bond issue. The fixed rate PABs will mature in 2046.


  • Indiana leveraged its good credit rating to attract low-cost private sector financing on the state's second availability payment P3 procurement
  • Two milestone payments to the P3 partner are tied to the completion of safety improvements in Bloomington, including interchanges at Fullerton Pike and Tapp Road and overpasses at Vernal Pike and Rockport Road
  • The private partner's $325 million construction cost is lower than the Indiana DOT estimate of $347 million

Related Links / Articles

I-69 Section 5 Procurement Documents

Selected Proposer Financial Proposal

Inside Indiana Business: State Selects Team for I-69 Section

Green County Daily World: I-69 Section 5 Contract Finalized


Will Wingfield
Office of Communications
Indiana Department of Transportation
Tel: (317) 233-4675

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
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