On Tuesday, May 31, the TIFIA Credit Program executed a $66 million secured loan with the Louisiana Transportation Authority (LTA), a subsidiary of the Louisiana Department of Transportation and Development (LADOTD). The loan will help finance the construction of Phase I of the LA-1 Project, a proposed toll highway in southern Louisiana.
The $247 million LA-1 Project is a 16.3-mile, four-lane, controlled access, elevated toll lane facility, replacing the existing Leeville Bridge, between Golden Meadow and Port Fourchon. The existing road suffers from subsidence and erosion from waves and tide and storm damage with periodic inundation and flooding. This is a critical hurricane evacuation route with no alternative. Phase I of the project, scheduled to open in June 2008, is an eight-mile, elevated two-lane highway, generally parallel to the existing LA-1 road, from Leeville south to Port Fourchon and includes a new high-level bridge at Leeville with a southbound toll facility.
The interest rate on the 35-year loan is 4.45 percent, the lowest TIFIA borrowing rate on record. The project is being funded from a combination of short-term Bond Anticipation Notes (BANS), the TIFIA loan, Federal and State grants, local contributions and $95 million in tax-exempt senior lien debt which LTA intends to issue on June 9th. The TIFIA loan proceeds will be used to refinance the $66 million in BANS after substantial completion of the project.
The FHWA Finance Technical Service Team is sponsoring a Transportation Finance Workshop June 27 - 30, 2005 at the Sir Francis Drake Hotel in San Francisco, CA. This event is a national workshop intended for State DOT officials, Federal Highway Division Offices, and others involved in transportation project finance. Hot topics for this event will include Public-Private Partnerships, Innovative Revenue Sources, updates on the Transportation Infrastructure and Innovation Finance Act (TIFIA), State Infrastructure Bank (SIB), Grant Anticipation Revenue Vehicles (GARVEE) tools, Special Experimental Project 15 (SEP-15) and the decision framework for use of financing tools.
The event will host breakout sessions that will discuss creating financial plans for mega projects, financing on tribal lands and rural areas, and identifying new revenue sources.
If you have questions regarding this event, please contact:
FHWA Finance Technical Service Team
Innovative Finance Specialist
The mailing address for the TIFIA Credit Program is:
Federal Highway Administration (HABF-50)
400 Seventh Street, S.W.
Washington, DC 20590
Please e-mail your comments or inquiries regarding this newsletter or the TIFIA program to: Duane.Callender@fhwa.dot.gov.
TIFIA Credit Program
US Dept. of Transportation