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Project Profile: I-69 Section 5

I-69 Section 5

photo credit: Aztec/TYPSA


Bloomington to Martinsville, Southwest Indiana

Project Sponsor / Borrower

Indiana Finance Authority (IFA)
Indiana Department of Transportation (INDOT)

Program Areas

Project Finance




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 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 was being implemented as a 35-year availability payment DBFOM concession. Due to financial and project delivery difficulties, IFA and the state terminated the contractual relationship with the private partner and returned direct control of the project to INDOT in July 2017.


$560 million (total capital cost, financing, and 35-year operations and maintenance in 2017 dollars)

Funding Sources

Original financing under the P3 agreement at the time of takeover

  • Private Activity Bonds (PABs) - $243.6 million
  • PAB sale premiums - $8 million
  • Equity - $115.8 million
  • Milestone Payments (from Indiana Finance Authority) - $108 million (funded from state and federal sources)
  • INDOT public sector funds - $93 million (design, right-of-way acquisition, utility relocation, environmental mitigation)

Financial settlement at takeover

  • Highway revenue bonds - $246 million
  • Bondholder reimbursement (I-69 Development Partners) - $12 million
  • Payment to IFA (I-69 Development Partners) - $50 million
Project Delivery / Contract Method

February 2014 - July 2017:

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

Post-public takeover:

Bid-Build (design is complete) for project management; existing subcontractors to remain

Private Partner

Former P3 partner - I-69 Development Partners

  • Isolux Infrastructure Netherlands B.V. (equity partner until May 2017)
  • 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. Substantial completion is expected by August 2018.

Financial Status

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

Once operational, the state of Indiana would have made an annual availability payment of $21.9 million (adjusted each year for inflation) to the private partner throughout a 35-year operation and maintenance period. The state has assumed the future risk for operating and maintaining the highway with the takeover from the private partner.

  • 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 were 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
Related Links / Articles

I-69 Section 5 Procurement Documents

Selected Proposer Financial Proposal

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

IFA Approval of Project Takeover


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

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